This building for sale in the form of an NFT has lost 40% of its value

A commercial building in New York was put up for sale in the form of an NFT. Unfortunately, the cryptocurrency collapse took a toll on the building’s value.

At the end of May 2022, Okada & Co, a Manhattan real estate company, put a commercial building up for sale in the form of a non-fungible token (NFT). The building was traded on OpenSea, one of the industry’s leading NFT sales platforms, to the tune of $ 29 million in Ether (ETH).

Unfortunately for Chris Okada, the CEO of the real estate firm, the cryptocurrency market collapsed within days of listing. Since the beginning of June, the price of Bitcoin has been in free fall and is in danger of dropping below $ 20,000. The queen of digital currencies has brought all other cryptocurrencies with her.

Drop in the price of Ether (ETH)

This is the case with Ether. After a turn above $ 4500 in 2021, Ether gradually unraveled. Cryptocurrency is now alive about 1100 dollarsthe first from January 2021.

© CoinMarketCap

Following the drop in the price of Ether, the Okada & Co building lost just over 40% of its value. Offers at the price of 15,000 ETH, the building is now only worth $ 17 million on OpenSea. Asked by CoinDesk, a media specialist in cryptocurrencies, Chris Okada announced a price adjustment.

“We will relist the sale for $ 29.5 million.”, announces Chris Okada. Specifies that it might abandon the idea of ​​selling the building for Ether due to the extreme volatility of the currency in recent weeks. To protect itself from further decline, the company could contact USDC, one of the main stablecoins of the ecosystem. The value of the token is indexed to the US dollar, which protects investors from the vagaries of the market. “If we choose ETH, it will be closer to 26,500 ETH”adds the CEO, or about $ 29 million.

Also Read: Why Jack Dorsey’s First NFT Tweet Is Only Worth $ 29

The real estate sector turns to cryptocurrencies and NFTs

For Chris Odaka it is above all a way of doing thingsattract cryptocurrency billionaires. “There are crypto-billionaires and crypto-millionaires who have no other use for their cryptocurrency than to have it in their wallet”explains the boss. After winning the token, the buyer will have to go through a classic regulatory process to obtain ownership from the US authorities.

Despite the collapse of the NFT market, many real estate operators continue to bet on non-fungible tokens to sell their properties. A house in Florida, in Tampa Bay, was also sold in February in the form of an NFT. The asset was trading for 210 ETH, or $ 650,000 at the time of the sale.

In some cases, buildings are sold directly against cryptocurrencies without being converted to NFT. In Venezuela, a young investor bought an apartment for $ 12,000 in USDT, another stablecoin, in August 2021. Some luxury real estate complexes also accept payments in cryptocurrencies. This is the case of the Surfside Art, a luxury complex located in Miami.

Source:

CoinDesk

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