TerraMint’s First Real Estate Token Offering To Go Live Next Week — Co-Founder Chris Gerardi

IMPORTANT POINTS

  • The tokenization of real estate has a great future: TerraMint co-founder
  • The first property in Tennessee goes into operation next week for $ 1.2 million
  • More accommodations like an Airbnb will be listed in the coming weeks

Real estate tokenization startup TerraMint will publish its first token offering for real estate investors on its platform next week. Co-founder and COO Chris Gerardi confirmed the property will be a Tennessee ranch that will be operational for $ 1.2 million.

“So the first token offering is going to be a ranch in Tennessee, and we’re going to set it up to go live and set up this property for four months,” Gerardi said in an exclusive interview with the International Business Times.

The buyer must have at least $ 500 to buy the property token, he said.

The next one will be an Airbnb property in downtown Dallas, which will be listed for the next four weeks, and two weeks later an Aspen property would go live, Gerardi revealed.

As of now, the properties available for tokenization are in the United States. The company plans to expand worldwide in the future.

Real estate tokenization is the process of creating a virtual token that represents ownership of a real estate asset. This is similar to NFTs, except that a real estate token is tied to an underlying physical asset.

Similar to traditional real estate investment, the value of the token fluctuates based on the performance of the asset. However, the simple transfer with blockchain gives it an advantage over traditional real estate investment. The tokenization of real estate also makes it easier for investors to search for real estate as it is listed on a central marketplace.

To buy the tokens, one needs to create an account on the platform and complete the KYC and AML verification process, then connect their wallet to the platform.

“And you can basically transfer that money and buy it through Dai Stable Coin. Or you can buy with fiat USD by depositing your bank account and then clicking how many tokens you want and then it does it for you,” said Gerardi.

TerraMint recently launched a defi real estate platform for both buyers and sellers. If a seller wants to advertise his property on the platform, this can be done for a flat fee.

“The flat fee is $ 10,000 for us to basically create smart contracts for tokenization. All of the legal work. And then we calculate between one and a half and two and a half percent of the total capital raised. This is a one-time fee. ” he said.

There are two markets on the platform. First, there is a primary market where the initial capital increase takes place. If a property is listed on the platform, it will go live for a certain period of time.

“Then if it raises the minimum capital requirements, let’s say a million dollars. As soon as it raises a million dollars, it goes to the secondary market. If it goes to the secondary market, you can sell your tokens and others can buy your tokens, “explained Gerardi.

Real estate tokenization is in its infancy in the crypto world and not many companies have started looking into it. Gerardi believes that this room has a “huge” future. The company plans to expand to include properties like amusement parks, yachts, private jets, etc. in the near future.

TerraMint Co-Founder and COO Chris Gerardi. Photo: Chris Gerardi