What is Tokenization in Real Estate?
KoreConX
The real estate market has seen a substantial uptick in value, with more and more people looking to invest in this asset class. However, the high barrier to entry – requiring significant capital – has traditionally limited participation to only those with deep pockets. But with tokenization and the blockchain technology that supports it, anyone can get in on the action.
What is Tokenization?
In simple terms, tokenization is the process of converting something of value – in this case, real estate – into digital tokens that can be bought and sold on a blockchain platform. This allows for fractional ownership of assets, which opens up investment opportunities to a much wider pool of people. Tokenization is a process that can facilitate investment in fractional portions of real property, thus lowering the barrier to entry for retail investors. By digitizing real estate ownership and using blockchain technology to track transactions, tokenization makes it easier and faster to buy and sell p...more
Part 3 (of 3): SmallChange Regulation Crowdfunding (Reg CF) Educational Materials
Small Change
Risks of investing
Many of the Securities listed on our Platform are speculative and involve significant risk, including the risk that you could lose some or all of your money. We’ve described some of the factors that make these investments risky in four ways:
- First, because many of the opportunities on our Platform will be in the real estate sector, we’ll describe risks common to that industry.
- Second, because many of the opportunities on our Platform will be in startup or early-stage companies, we’ll describe risks common to those companies.
- Third, we’ll describe risks common to many of the companies on the Platform, not covered in the real estate or startup categories.
- Fourth, we’ll describe risks associated with particular kinds of securities (e.g., debt securities or equity securities).
- Fifth, when you review a particular investment opportunity, the Issuer will also provide a list of risks specific to that opportunity.
The order in which these factors are discussed, either here on
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