Tokenization, as it pertains to real estate, is the process of creating a virtual token that would represent ownership of a type of real estate asset. This is similar to the recent digital asset craze, non-fungible tokens (“NFTs”), except a real estate token would be tied to the value of a physical asset. With the rise of virtual tokens, here are some common questions asked about their use.
An initial coin offering (ICO) is the cryptocurrency industry’s equivalent to an initial public offering (IPO). A company looking to raise money to create a new coin, app, or service launches an ICO as a way to raise funds.
Interested investors can buy into the offering and receive a new cryptocurrency token issued by the company. This token may have some utility in using the product or service the company is offering, or it may just represent a stake in the company or project.