NFT tokenization of land titles remains one of the most viable uses of the technology. Over time, the trend is picking up despite some regulatory hurdles when it comes to acquiring a license to sell security tokens. Having said that, Base, A cryptocurrency startup that was formed last year has managed to tokenize its first NFT deeds for a single-family home located in South Texas.
The house was valued at $235,000. However, within two weeks, Homebase was able to raise $246,800 for the property by tokenizing it into Solana using a smart contract tied to an NFT. Interestingly, the startup raised an additional $11,800, which was set aside to help with “maintenance and other issues.”
Real estate tokenization offers some advantages for both homeowners and investors. Firstly, it helps owners get liquidity from these properties, and secondly, it gives anyone the opportunity to invest in and benefit from real estate. Owning a property is a dream for many people, however, given the astronomical numbers involved, it remains out of reach for many people.
🚨Homebase sells the first tokenized home on @solarium 🚨
We are excited to share that our first tokenized rental property has sold out in < 2 weeks!
Investors will start receiving rent directly into their crypto wallet via USDC 😎
Learn how you too can become an owner ⬇️
— Base of operations 🏠 (@HomebaseDAO) March 28, 2023
homebase just started
Regulators are removing a hurdle with real estate tokenization. In the case of Homebase, the company spent seven months just preparing the legal and compliance details for this property. As Domingo Valadez, co-founder and CEO of Homebase, points out, the overall effort took a year. That included filing with the SEC to be allowed to trade security tokens to both retail and accredited investors.
In total, 38 investors participated in the action, with a minimum investment of $500, according to the SEC filing, 30 of whom were not accredited.
Valadez says they chose Solana because of its ease of use and cheap gas prices. As a result, 15 of the 38 participants were able to create their first Solana wallets and buy fractions of the property as NFTs. Now, these participants are expected to hold onto these NFTs for at least a year before they can freely sell them. NFTs represent your share and accrued interest in the property.
After the success of this sale, Homebase says that it is working on tokenizing its second property. Startup allows users to purchase tokenized portions of property “in one click” using USDC.
They want more? Connect with NFT Plazas
Join the weekly newsletter
join our discord
Follow us on Twitter
Like us on facebook
Follow us on Instagram
*All investment/financial opinions expressed by NFT Plazas come from the personal research and experience of our site moderators and are intended for educational purposes only. People are required to fully research any product before making any type of investment.
Basil is an avid fan of blockchain technology and all its innovations, and he is passionate about sharing this narrative with his audience. He has spent over five years in the crypto space, specializing in research and creating Web3 content for various media outlets around the world.
!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod?n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window,document,’script’,’https://connect.facebook.net/en_US/fbevents.js’);
