Florida Gains Early-Mover Status With Real Estate NFT Sale Story

The American dream is now available on the blockchain. After disrupting the art and music landscapes, digital collectibles known as non-fungible tokens (NFTs) have made their way into one of the most traditional sectors of the economy — real estate. NFTs are all about proof of ownership, as is property, so a hybrid deal was probably only a matter of time.

Blockchain-fueled startup Propy and Heckler Real Estate were behind a real estate NFT blockchain auction for a property in Gulfport, Fla., the first of its kind in the United States. With an opening bid of $650,000, the investment-based property gives the winning bidder access to an entity that owns the Spanish-themed property plus a digital version in the form of an NFT, the ownership rights to which are stored in a cryptocurrency wallet.

Bids were taken in Ethereum (ETH), with the house/NFT combo ultimately selling for 210 ETH, or roughly $652,000.

Cryptocurrencies have a reputation for being anonymous and unregulated, but they've evolved. For example, to participate in the Propy deal, bidders had to verify their identity via a know-your-customer (KYC) form, which is the standard for crypto exchanges like Coinbase these days.

In addition, bidders had to prove they could afford the property with at least the minimum bid in their crypto wallet to participate. Thousands of people wanted in. Propy tweeted,

“Oh wow! We know it’s a great property but just wow! We didn’t expect so many of you to be interested in our first RE NFT auction in the US. As we speak, we are swamped with people trying to get verified.”