History is about to be made in Florida as a piece of US real estate goes to auction as a non-fungible token for the first time. The property rights will be minted into a token and transferred via blockchain by real estate technology company Propy.
Bidders in Their Thousands Already Lined Up
No 6315 11th Avenue, a modern Spanish-inspired estate in the city of Gulfport, is expected to go to auction on February 10. Initially set for February 8, the auction has been delayed slightly due to immense public interest as 2,000 bidders queue to participate.
Blockchain start-up Propy will host the auction via its online platform, with Ethereum the cryptocurrency of choice. From a US$650,000 starting price, the conclusion of bidding will see one lucky buyer receive the property deed in the form of an NFT. While this transaction will not be a global first – the first NFT property sale was an apartment in Kiev, Ukraine last year – it will be an American first.
The current owner of the Gulfport home, Leslie Alessandra, is a local real estate investor and founder of DeFi Unlimited, a Tampa Bay blockchain company. Alessandra hopes that the auction of her home will stimulate conversation surrounding the potential of NFTs.
We’ve seen what NFTs and crypto does for the art community … Now we’re demonstrating what it can do for the real estate community.
Leslie Alessandra [Bay News 9/Twitter]
This real-world application of NFT and blockchain technology allows the buyer security and anonymity. Alessandra hopes the future new owner will be another NFT enthusiast. However, she acknowledges that market trends are volatile and sharp fluctuations may impact the future performance of the home in the crypto market.
Is Australia Set to Follow Suit?
Real estate-backed NFTs have been slow to gain traction in Australia. However, crypto property transactions have taken place across the country. Sydney, in particular, has seen multiple bitcoin transactions in its property market.
Although we are yet to see any Australian property deeds minted into NFTs, this could change in coming years – pending the outcome of this week’s Gulfport auction.
Broadening Horizons of NFTs
NFTs are moving beyond the realm of mere digital art collectibles into several increasingly varied industries. Worldwide interest in real estate-backed NFTs is taking off, with Propy’s smart contract token excelling since its Coinbase listing in January 2022.
Chinese tech giant Alibaba’s e-commerce platform Taobao has unveiled a digital collection of NFT houses. The backing of this artistic collection serves to demonstrate the willingness of large companies to embrace NFT technology. And, with music festivals such as Coachella and a number of sports teams seizing the opportunities NFT technology provides, it’s likely the technology will keep on adapting.
By Lauren Claxton, Crypto News Guest Author