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Let us break this down..
Tokenization: This is the process known as digitalizing an asset.
- It's based on cryptocurrency
- This digital token is the same as a cryptocurrency.
- Thus a digital token is created which represents an ownership interest in the asset.
- This token can be used to allow investors to exchange their fiat for digital units or tokens, tokens representing ownership or capital interest in an asset.
- This allows money to be raised funds, and attract a wide range of investment.
What types of tokens exist
- Equity and Debt
Equity tokens show what percentage of equity belongs to the investor. - Debt tokens
Debt instruments like mortgages or rentals - smart contracts direct payments
What are advantages
Fractional ownership
High accessibility
Fract; allows owners to divide houses into smaller pieces
Flexibility and Liquidity
Anyone can invest small amounts and buy and sell
Global ability- immune to location restrictions
Speedy deals and transactions; deals made via smart contracts rapidly
Low entry barriers
Investors don't need large amounts of capitols
Business Growth; new ways to promote, attract new customers
Regulations; local regulation determine characterization, sales and investment activity
RET must be registered by SEC unless earn exception
How to tokenize real estate asset
STO Security Token Offering; issue security tokens on a blockchain
RE: Former FTX CEO Sam Bankman-Fried Defense: my lawyers said it was okay to spend my customers money.