Homes Are Selling on the Blockchain
Roofstock has sold its second physical house on the blockchain, after a $180,000 Alabama single-family home sold as an NFT. Is real estate the next major use case for NFTs?
TylerD's Market Summary
Highlights from today’s update includes real estate on the blockchain, a new timeline from Yuga, the latest from Jack Butcher, and Google’s new ChatGPT competitor.
🏠 Real Estate on the Blockchain
This Alabama house NFT sale is now the second sold by Roofstock, a property technology company focused on selling single-family rental homes.
The deal was done in USDC on the Ethereum blockchain.
And while buying and selling real estate on the blockchain using crypto is exciting in itself, this also unlocks a new class of real-world collateral for DeFi purposes.
In fact, protocols like Teller are being spun up to help potential buyers to surface loan requests and finance these housing deals, all on the blockchain.
How does it work?
There are still some hurdles for this process, but as someone who has bought a few homes in the existing Web2 process, they seem manageable:
KYC: prospective buyers and sellers will need to mint membership tokens (NFTs) as a part of a know your customer (KYC) check
Soulbound: after verification, these membership tokens become "soulbound," meaning they can not be transferred, forever representing their status as an eligible buyer
Web2 Buying: the buyer must purchase the property first and title it as an LLC
NFT Buying: the home NFT can be purchased on the Roofstock NFT marketplace, with smart contracts looking for those soulbound tokens to verify eligibility
What is actually being bought and sold? The LLC.
Enter Sanjay Raghavan, head of Web3 initiatives at Roofstock.
“The purpose of that LLC is to hold title for the property,” he said. “The Web3 part is creating an NFT that is associated with the sole ownership of this LLC — so, when people are selling the NFT on a marketplace, in essence, what is really happening is the ownership of that LLC changing hands.”
Is this the future of real estate?
There are certainly a lot of pros (less hurdles, ease of transaction using crypto vs legacy banking), but we likely have a way to go in terms of onboarding, ease of use of the blockchain and protocols, and security (help, my home was hacked overnight!) before going mainstream.
🚚 What else is happening in NFTs?
A few headlines from a very slow day in the NFT market:
The NFT market saw just over 20,000 ETH in trading volume on the day, led by BAYC and Sewer Passes which combined for 4,000 ETH
Yuga teases upcoming events in The Trial saga, happening from February to May, leading some to speculate this Trial will last the course of 2023
Lick the Toad: Get Trippy
Mech Types Reveal: Collection Info
It Came Through the Rift: Evo 1 Reveal
Journey to EVO 2: Time to Play
Jack Butcher's Checks remain hot, after another metadata change to match Deepak's Alien Punk and an overnight 3-digit serial sweep (i.e. tokens 100-999) brought that floor to 4.2 ETH (overall floor at 2.1)
OpenSea is introducing a private beta program allowing users to test new features in an effort to ship faster and with fewer bugs
🌎 Around Crypto and Web3
A few other Crypto and Web3 headlines that caught my eye:
Andy8052 and the Tessera team announced the upcoming launch of a new NFT marketplace, Escher, that will focus on elevating edition-based NFTs and creating a single landing zone for all of an artist's editions (sorely needed)
Google is set to launch a ChatGPT competitor 'Bard' in the coming weeks
Binance will suspend USD bank deposits and withdrawals apparently due to "administrative issue," leading some to ask if this is the canary in the coal mine
New FTX CEO John Ray was paid $690,000 for his first weeks on the job in late 2022 (even crypto CEOs get paid in meme prices)
🚀 NFT Total Volume
BAYC (2,124 ETH, 74.7 ETH)
Sewer Pass (1,887 ETH, 2.7 ETH)
Otherdeeds (1,664 ETH, 1.69 ETH)
Doodles (1,335 ETH, 5.9 ETH)
Checks (1,274 ETH, 2.1 ETH Floor)
📈 NFT Floor Price Increase
Valhalla (21%, 0.83 ETH Floor)
Kanpai Pandas (18%, 2.1 ETH Floor)
a KID called Beast (11%, 0.49 ETH)
Sewer Pass (9%, 2.74 ETH Floor)
BAYC (8%, 74.7 ETH)
🗓 Upcoming NFT Mints and Reveals
Today is a slow day of drops in what seems to be a slower week in NFTs overall.
Expect more volume and attention on Checks along with Sewer Passes and the Yuga eco after yesterday's announcement of new events for The Trial.
And reminder - that Blur airdrop is now just 1 week away!
Earpitz (8:00 a.m. ET)
MUGLER - We Are All Angel (8:00 a.m. ET)
UFC 284 Event Pack (1:00 p.m. ET)
Enjoy this write-up? Follow along with me on Twitter @tyler_did_it or reach out via email firstname.lastname@example.org.
For all volume and floor price data, see Lucky Trader's Project Rankings page.
For all upcoming mints, see Lucky Trader's Project Schedule page.