How Is an Ico, a Fitting Solution for Real Estate Businesses?

  • In the recent past, the interest for the innovative blockchain technology and its applications have been tremendously increasing in the global financial market involving the largest of industries, especially real estate. The blockchain technology, in a highly useful means, represents a tool to bring in financial resources for the real estate sector, through issuance of tokens, among which the most popular one is ICO. 

    ICO( Initial Coin Offering), like mentioned above, is a popular fundraising mechanism where investors are issued tokens that they sell to raise capital for their businesses, mainly startups. Now how does ICO work in real estate and how it benefits the industry? Let’s take a brief look.

    How Does ICO Work for and Benefit the Real Estate Sector? 

    • ICOs are intended towards providing investors the ability to track and trade through a shared database. Likewise, ICOs allow “Fractional Ownership” for real estate assets through which investors can split the asset value into shares and as well as the ownership. 

    • According to an article report by coindesk, Mr. Joshua Nussbaum of Compound VC, an architecture venture says, 

    “If done responsibly and legally, I do think these types of projects can advance the industry by offering previously inaccessible liquidity and investment opportunity to individuals.” 

    • Other than this, ICOs offer more transparency to the users, they are unregulated and relieves the users from the long, tedious legalisation process. 

    • The real estate transactions are made more efficient, effective, cost-effective and secure with the help of ICOs based on a blockchain network. 

    • According to Mr. John Mirkovic, a deputy recorder at Cook County recorder of deeds, says that

    “We are already getting to work in Illinois on statutory changes that will pave the way for a system where the transfer of a token is both the conveyance and the public record in one event”

    These are some of the examples and statements by experts in the field, and there are many more to this. If you want to benefit through ICO for your real estate property as well, conduct ample research and choose a well experienced, recognized company to offer you robust real estate tokenization, and ICO development services.