Carefully invest in real estate tokens
Real estate tokenization has proven to bring many benefits in the short term. But investors need to be aware of the risks to avoid falling into loss-making holes.
Real estate token leads in potential
The concept of tokenization is not too strange in the current era of the digital economy. The first token project with the US dollar (USD) was in July 2014. Since then, there have been many projects to tokenize the USD currency in different forms. From MakerDAO’s December 2017 attempt at minting tokens to validate USDC, Pax Dollar (USDP), Ethereum (ETH) and Wrapped Bitcoin (WBTC) and other cryptocurrencies, come 2 projects Iron Finance and Terra Project to tokenize USD algorithmically with Iron and UST Tokens in March 2021 and September 2020.
While there are many projects that have tokenized every asset class from gold, bonds, funds, companies, cars, yachts, wine, oil, carbon credits and even stocks, nothing stands out. by real estate in terms of potential market size.
According to Savills Research, the total global real estate value will reach $326.5 trillion by 2020. In contrast, the global fixed income market will remain at $126.9 trillion in 2021, while the global stock market is estimated at $124.4 trillion in 2021, and the total value of US Dollars in circulation at $40.8 trillion in 2021.
The potential market value of real estate is 1.1 times the combined market value of global fixed income, global equities and the US Dollar, making real estate the holy grail of real estate. all token projects.
Real estate tokens caught the world’s attention in 2018 with the tokenization of the St. Regis Aspen of Elevated Returns. The tokenization has successfully raised 18 million USD for 18.9% stake in the resort hotel with Aspen Coins and attracted a lot of interest and excitement from the market.
A similar real estate token project called RealT was launched in 2019 with real estate properties across the US such as Detroit, Cleveland, Chicago, Toledo and Florida with a total value of over $50 million being tokenized. chemical.
In 2022, a real estate token project called CitaDAO used a decentralized finance (DeFi) model and tokenized an asset in Singapore at a price above its actual value. This has demonstrated that tokenized real estate can be overvalued compared to its own real-world value.
These projects have diverse developments in terms of geographical location, type of real estate, legal structure, liquidity, technology, cooperation model and investment capital, but all publicly share the same strengths. such as easy, diversified, efficient and transparent participation conditions.
The benefits of tokenizing real estate are becoming more and more widespread. In essence, real estate is a low-liquid asset. Thus, the main benefit of tokenization is its ability to add liquidity to this market.
—————————————————————————————————————————————————————————————-
▶ Fanpage: https://www.facebook.com/603virtualstaging
▶ Website: https://603virtualstaging.com/
▶ Instagram: 603virtualstaging
▶ Email: 603virtualstaging@gmail.com
—————————————————————————————————————————————————————————————-
© Copyright by 603 Virtual Staging Channel ☞ Do not Reup
