NFT House Sells For $175,000 | Roofstock Real Estate NFTs
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With uses cases including simplifying access, lowering transaction friction, and democratizing ownership, NFTs have found a home in the real estate market. In contrast to cryptocurrencies, real estate has historically been considered as a rewarding investment that has seen less volatility.
Despite the current overall crypto market collapse that has seen many digital artifacts lose more than 60% of their value in the previous four months, Roofstock, a real estate technology business, has integrated the two industries with the sale of a tokenized property for $175,000 last weekend on OpenSea.
Awesome. This #NFT house sold for $175k over the weekend. 🏡
— rustybill.eth (@Rusty_Bill) October 17, 2022
NFTs Are Adopted By Roofstock For Its Real Estate
This year, Roofstock received $1.9 billion in a Series E fundraising round. Soon after, Roofstock and Origin Protocol collaborated to introduce a real estate initiative that offered on-chain transactions portrayed as NFTs.
The combined team's NFT marketplace for physical real estate, which reduced seller's costs by more than 50% compared to conventional norms, was introduced earlier this month. Roofstock this weekend demonstrated that the value of real estate that uses non-fungible tokens comes from the real estate itself, not the NFT.
Advantages Of Using NFT In Real Estate
Josh Frayer, a co-founder of Origin Protocol, and Geoffrey Thompson, the chief blockchain officer of Roofstock, discussed the significance of blockchain technology in an interview with Hackernoon. The two also spoke about the potential effects on real estate and the need for investors to pay more attention to it. In the conversation, Thompson clarified:
“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 summing, the two pointed out that although the recent crypto market crisis had an impact on the NFT business, many investors were unaware that NFTs go beyond profile images, which are now the most common kind of NFT.
Roofstock has shown that NFTs may be used to represent any assets in the industry, from real estate to car loans, among others, after its impressive sale of an NFT home over the weekend.
Another investment project using NFTs is Impact Project (IMPT), which we just analyzed. Carbon credits are being tokenized by IMPT and made accessible to users as NFTs. The presale of IMPT's tokens generated more than $5.4 million in revenue.