TerraMint’s first real estate token offering will go live next week – Co-founder Chris Gerardi
- Real estate tokenization has a great future: co-founder of TerraMint
- Tennessee’s first property to go online for $ 1.2 million next week
- More properties like an Airbnb to list in the coming weeks
Real estate tokenization startup TerraMint is set to bring its first token offering for real estate investors to life on its platform next week. Co-founder and COO Chris Gerardi has confirmed that the property will be a ranch in Tennessee, which will be commissioned for $ 1.2 million.
“So the first token offering will be a ranch in Tennessee, and we’re going to bring it online and it will be in place for four months. People can go on and start buying tokens at that property,” Gerardi said. in an exclusive interview with International business time.
The buyer must have a minimum of $ 500 to purchase the property token, he said.
The next one will be an Airbnb property in downtown Dallas
From now on, the properties that will be available for tokenization will be in the United States. The company plans to expand globally in the future.
Real estate tokenization is the process of creating a virtual token representing ownership of real estate. This is similar to NFTs, except that a real estate token is tied to an underlying physical asset.
Similar to traditional real estate investing, the value of the token fluctuates based on the performance of the asset. However, the ease of transfer using blockchain gives it an edge over traditional real estate investing. Tokenization of real estate also makes it easier for investors to find properties as they are listed on a centralized marketplace.
To purchase the tokens, one needs to create an account on the platform and complete their KYC and AML verification process, then connect their wallet to the platform.
“And you can basically transfer that money and buy through Dai stable coin. Or you can buy with fiat USD by putting your bank account, then you click the number of tokens you want and then this is executed for you,” said Gerardi.
TerraMint recently launched a real estate platform Defi for buyers and sellers. If a seller wishes to list their property on the platform, this can be done for a flat fee.
“His fixed fee is $ 10,000 so we can create smart contracts for tokenization. All the legal work. And then we charge between one and a half percent to two and a half percent of the total capital increase. ” he said.
There are two markets on the platform. First, there is a primary market, where the first capital increase occurs. When a property is listed on the platform, it goes live for a certain period of time.
“Then when he increases the minimum capital requirement, let’s say a million dollars. Once he raises a million dollars, he then goes into the secondary market. When he goes into the secondary market, you can sell your tokens. , other people can buy your tokens, ”explained Gerardi.
Real estate tokenization is in its early stages in the crypto world and few companies have started to address it. Gerardi believes this space has a “huge” future. The company plans to expand to list properties such as theme parks, yachts, private jets, and more. in a close future.