NFTs have found a home within the real estate market, with uses cases such as streamlining access, reducing transaction friction and democratizing ownership. For many years, real estate has been seen as a profitable investment with a less volatile history compared to cryptocurrency.
Roofstock, a real estate technology company, has combined the two fields with the sale of a tokenized house for $175,000 last weekend on OpenSea, despite the recent general crypto market meltdown that has left many digital collectibles shedding more than 60% of their value in the past four months.
Awesome. This #NFT house sold for $175k over the weekend.
Holding the NFT gives you ownership of the actual house in South Carolina. The company that made it happen is @Roofstock and you can view the traits on @opensea. pic.twitter.com/B0xBGBgW6e
— Rusty Bill (@Rusty_Bill) October 17, 2022
Roofstock Adopts NFTs For Its Real Estate
Roofstock raised $1.9 billion in a Series E funding round this year. Shortly after, Roofstock teamed up with Origin Protocol to launch a real estate project offering on-chain transactions represented as NFTs.
Earlier this month, the joint team launched its NFT marketplace for physical real estate, which cut seller’s fees by more than 50% compared to traditional standards. Last weekend, Roofstock proved that real estate that leverages non-fungible tokens gets its value from the real estate itself, not the NFT.
Benefits Of NFT Adoption In Real Estate
In an interview with Hackernoon, Josh Frayer, the co-founder of Origin Protocol, and Geoffrey Thompson, the chief blockchain officer of Roofstock, shared insight into the importance of blockchain technology. The two also discussed how it can impact real estate and why investors should pay more attention to it. During the interview, Thompson explained:
“Tokenizing real estate creates frictionless transactions, simplifies the process, and makes information more readily available. The whole ecosystem exists for one purpose: so the buyer and seller can have a trusted relationship.”
In turn, Frayer added:
“Another benefit of the tokenization of real estate is the accessibility of the properties for potential buyers. The marketplace allows users to purchase real estate with USDC, a widely accepted stablecoin that’s pegged to the value of the U.S dollar. This way, users don’t need to worry about the volatility of the crypto markets.”
Before summarizing, the two noted that although the NFT industry has suffered from a recent crypto market crash, many investors have failed to realize that NFTs are more than the form of profile pictures, which are the most prevalent NFTs today.
Following its remarkable sale of an NFT house over the weekend, Roofstock has showcased that NFTs may be used to represent any assets in the industry, from real estate to auto loans, among others.
Elsewhere, Impact Project (IMPT) is another investment project adopting NFTs, which we recently reviewed. IMPT is tokenizing carbon credits and making them available to users as NFTs. IMPT has raised more than $5.4 million from the presale of its tokens.
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