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 an NFT-linked home would be affected by the crypto market, Vasilakis said.