The number of ICOs related to the real estate industry is growing by leaps and bounds. The problem is that the real estate ICOs are not able to garner a proper response from the investors. The number of platforms, launching such ICOs is plenty. Some of the platforms are pitching in real estate as an investment in the tokenized form. On the other hand, there are some other platforms which are just real estate fundraising platforms.
- BitRent, a way to speed up financing construction projects;
- Etherty, real-estate management through equity access;
- Caviar, a fund that tempers the volatility of crypto investments with loans to real estate projects;
- Trust, a way to tokenize equity in real estate and other real-world assets
- Atlant ICO, Blockchain-based global real estate platform built over Ethereum. Trade tokenized property and rent apartments without paying high fees.
The problem is that most of the ICO investors are not interested in such ICOs. On the flipside, these ICOs provide a lot of advantages to the investors. They provide fractional ownership of properties which can be liquidated quite easily.
One of the main emerging trends in these ICOs is that these are based on the Private Blockchains. This makes it easier for the investors to pour in the money. There are plenty of hybrid solutions as well. One such solution by the name of caviar intends to limit the volatility in cryptocurrency by funding real estate projects. On the other hand, another company by the name of trust has tokenized the real estate investments.
As you can see, the types of offerings in the real estate industry are plenty. The response, however, has not been that great.
According to VC Joshua Nussbaum, sooner than later most of the investors will start investing in real estate ICO’s.
When you are investing in real estate with the help of ICOs, the liquidity which you will have will be on the higher side. You will be able to easily sell your tokens and get your money back. This is the main reason why many companies launching the ICOs are related to the real estate industry. Real estate industry is often plagued by less liquidity. This problem can be solved with the help of such ICOs.
Since the tokens are based on the blockchain, it will indeed become easier for the investors to liquidate them in real time. They will then be able to convert the amount into Fiat currency or any other cryptocurrency quite easily.
While the response might be lukewarm currently for most of the real estate ICOs but it will surely become hot in the future. Real estate ICOs provide you with the security of investing in real estate and the liquidity of cryptocurrency assets. Thus, they combine the best of both the worlds which will attract the investors sooner than later.