A Home in Florida’s coast will be auctioned as an NFT: “Non-fungible token” in what is believed to be one of the first transactions of this nature in the US.
These non-fungible tokens are one-of-a-kind objects that rely on encryption technology to secure cryptocurrencies.
This system grants the object with a form of authenticity certificate to ensure that there the original one is identifiable. This prevents an endless replication of such item.
In this case, the property is a four-bedroom home that sits in Gulfport, Florida. The technology real estate company, Propy, which is currently based in California is selling the rights to the property as an NFT. They will host an online auction that will have a starting bid at $650,000.
This operation reduces costs for buyers and makes the purchasing process quick, by letting them buy a property in just a few minutes. Propy’s plan is to scale this system into a global practice, providing a single framework for purchasing real estate using blockchain technology. This type of transaction will allow the owners to sell the property with the same agility we use on a simple venmo transaction.
The risk involving this new operations are the natural volatility of cryptocurrency. It is still not clear if the value of a property that is connected to an NFT can be as drasticly affected by the crypto market and it changes.