Recent announcements heralding the tokenization of properties in New York and Miami have been met with much interest and excitement in the commercial real estate industry. Could this be the beginning of the long-awaited momentum in tokenization of properties? While all indications were that yes, tokenization had finally arrived, the deals were stalled due to the parameters set regarding investors, including a $500,00 minimum of cryptocurrency to participate.
While many companies are looking for high net worth investors, there is one company that is opening the tokenization option to everyone – Jointer. Jointer has developed a scalable tokenization platform that provides all investors with the ability to realize instant investment, better returns and less risk. With no minimum or costly due diligence, Jointer brings scalability to tokenization.
A few weeks ago, Ineveniam Capital Partners announced its plan to tokenize about $260 million in four private real estate transactions including a WeWork building in Miami, Florida. The company tokenizing the building is opening the sale only to prospective buyers who hold at least $10 million in cryptocurrency and a minimum purchase of $500,000.
A $500,000 floor for tokenholders limits participation to only the wealthy. Blockchain is for the unbanked, the believers, the innovators, not just the wealthy. Blockchain should open tokenized asset markets to all, not further consolidate power and money.
An attorney familiar with the WeWork project even went so far as to say, “…I want sophisticated investors who understand how to do due diligence into projects like this to be the ones starting out the investment process, “Sophisticated” in this case, appears to translate into investors who have large reserves of cash and equity at hand.
For tokenization to truly transform the real estate industry, it must be structured to reach as closely to a trustless tokenization and lending process as possible. Focusing on the tenants of blockchain and simplifying the real estate investing process, Jointer developed a scalable tokenization platform that provides investors with the ability to realize instant investment, better returns and less risk.
Unlike current tokenization platforms, Jointer provides free, end-to-end public tokenization for owners of lucrative commercial real estate assets. Focused on scalability, an unlimited number of property owners can tokenize their properties at the same time. Once the reserve has enough capital, properties can be instantly tokenized once analysis is complete. That means property owners could get cash immediately for their assets.
On the other side, Jointer grows the reserve and allows an unlimited number of investors can lend unlimited funds by purchasing Jointer’s JNTR debt tokens. These debt tokens are backed by cross collateral generating returns that are tied to an index. Tying returns to indexes reduces risks for token holders.
But this story isn’t yet being told as the media continues to chase after big headlines. In October of 2018, the commercial real estate community buzzed with the announcement that two luxury condo buildings in Manhattan would be tokenized for $30 million.
Less than three months later, the building went up on the auction block. David Amirian of the Amirian Group, which owned the properties said the group decided that a bulk sale was the best exit.
“The prospect of instant liquidity, both for my investors now and for my next projects going forward, justified going the auction route,” Amirian said in a statement.
If tokenization is to take hold, we must focus on sustainable and scalable solutions that open the process to all. Owning property has traditionally provided a way out of poverty, so increased access and participation by everyman and women helps to democratize the investment process and helps lift people and the industry up. Jointer seems to provide the solution blockchain is looking for – participation for all with instant returns and less risk.