GULFPORT, Fla. (AP) — A home along Florida’s Gulf Coast will be auctioned off next week as a non-fungible token in what would be one of the first such transactions in the United States.
Non-Fungible Tokens – or NFTs – use a version of the encryption technology used to secure cryptocurrencies to create one-of-a-kind digital objects. Technology provides digital creations with a sort of certificate of authenticity, allowing ownership of something that could otherwise be reproduced endlessly.
In the case of the four-bedroom home in Gulfport, Florida, a California-based real estate technology company, Propy, will turn the ownership rights into a digital token and host an online auction, with bids starting at $650,000.
Minting property rights in an NFT would allow homeowners to sell a home as quickly as a Venmo transaction, Leslie Alessandra, the home’s current owner, told the Tampa Bay Times.
Christopher Vasilakis, a local real estate and virtual reality expert, described such a transaction as “essentially the simple sale of a business and a business owns that house.”
There could also be challenges given the volatility of the cryptocurrency, and it’s not yet clear whether the value of a home tied to an NFT would be affected by the crypto market, Vasilakis said.
10/ If you wish to bid, register here and we will send you more information on the process. The identity of each bidder will be verified to gain access to the auction. https://t.co/zlWyVS5hPI
— Propy (@PropyInc) January 27, 2022