A Real Apartment to be Auctioned as NFT by Propy
Propy introduced the notion of smart contracts to blockchain technology to smooth real-world real estate sales. It was the first blockchain company to achieve this. Propy is planning the Auction of a Real Apartment as NFT.
Although it may appear to be a stunt, the event is intended to demonstrate that it is possible to do so legally. And, by golly, they’re going to give it they’re all.
The NFT will be auctioned off in conjunction with a modern, brand-new one-bedroom flat in Kiev, Ukraine, which Propy previously made history with as the first-ever blockchain-based real estate transaction.
Propy claims that the NFT will convey actual ownership of the property. If you haven’t heard, NFTs, or non-fungible tokens, are cryptographic “tokens” representing a unique item — such as a work of art, music, or other collectibles — and digitally certify ownership.
NFTs have enthralled the crypto-world with their ability to be applied to almost anything, including a Banksy work of art that was subsequently burned.
The auction will take place over 24 hours, with the first listing starting at $20,000 and going up from there. The NFT sale information is accessible here, and it will be updated as the auction progresses with any new information.
Michael Arrington, the founder of this news site and now a crypto investor with Arrington XRP Capital, owns the flat in question.
Arrington and Tim Draper, the former founder of DFJ, are among the investors in Propy, which claims to have processed $1 billion in transactions using its platform.
“This NFT will go down in history,” Propy CEO Natalia Karayaneva remarked.
It is a significant step forward for Propy in realizing the promise of blockchain technology and non-fungible tokens (NFT) to enable ‘self-driving real estate transactions and participation in the decentralized finance economy.”
This is how it will all go down: Arrington has signed legal documents for the NFT to transfer ownership to a future buyer, which wasPropy’s lawyers drafted.
The NFT auction is then conducted by Propy, who is paid in Bitcoin. After completing our KYC details, the auction winner becomes the owner in under a minute.
The Kiev property is owned by a company situated in the United States, and when the auction is finished, the new owner of the NFT becomes the company’s owner, and thus the property’s owner.
When the NFT attached to the property is resold, the process is repeated.
“We were thinking, and this appeared to be a natural development of our white paper from 2017,” Karayaneva remarked in an interview with me. In reality, many of the transactions we make, such as real estate and property, are already NFTs, but with our smart contracts.
However, the NFT concept now offers a new approach, allowing a property to be transferred peer to peer between two wallets.
“As a result, there is no need to update the owner’s name in the land registry. This is true of many countries, including the United States.
This concept will work in the United States, and there is a growing trend in the United States of buying real estate through an LLC to protect the owner’s privacy.
“Coming at this from a crypto standpoint, we’ve seen what occurs when DeFi gets hooked into credit markets,” Arrington said on the same call. I can borrow against an NFT or any DeFi asset without going through a middleman if I have one.
Right in present, if I own real estate, I can’t borrow against it without using a middleman because I’d have to go through a bank and get a mortgage or whatever. It’s also the friction and all of the costs in terms of speed and duration.
“I believe that if we can discover a method to integrate real estate and other real-world assets into DeFi, the amount of credit that can be produced around that will eventually be in the billions. As a result, I believe that must occur. This raises legal and regulatory concerns. Propy has put forth a lot of effort to help with the legal aspects of this. But if they do, I think the idea of an NFT representation of a real-world asset is a major one from the standpoint of ease of trade and access to credit markets.”