The unusually high (and informative) virtual board at the top of the security token yesterday shows serious difficulties in bringing organized assets into the chain, as well as the prospects and development of a symbolic real estate case despite these obstacles.

The Michael Polet Freedom Foundation, the presence of the Regev of Jointer.io and Mohsen Masood of the AKRU, spoke for 30 minutes about the state of hardwood property in a loose and often controversial discussion, highlighted by the complexity of decentralized finance and strict government oversight. AKRU’s host Kiran Arif rarely performed.

When asked why coded real estate is so interesting, Flight cited the size of the market and how few investors may be available.

“You have $ 280 trillion in real estate, and real estate coding will allow any investor to enter this asset class,” he said.

Mohsen agreed and noted that high prices and regulations have traditionally kept ordinary investors away from the real estate market, beyond buying as a house.

“We want to offer these securities, these asset-backed securities, to people who traditionally did not have access.”

Regulatory shackles
While the promise of the utility case was important and had been thought of for almost a decade, with the exception of a few attempts, there were no significant errors.

Part of the reason, says Regev, is the friction associated with the transfer of an organized asset to a decentralized system.

“It can not succeed,” he said.

Compare today’s digital properties with digital paper, and say that all legal requirements and barriers around the property remain functionally identical, whether formatted digitally or physically, and as a result, non-accredited investors can still not access.

In the same way, he expressed doubts that such tokens would be listed on the stock exchanges or obtain significant liquidity, which makes the use case useless.

“Do you remember the timeshare days, sounds good? And when you get into this, you can not get out? This is almost what it is, “he said, referring to a” magic word “token with a small amount of substance.

Something is better than nothing
Mohsen rejected many of these points and noted that real estate investment funds and other products supported by real estate have been able to achieve high liquidity. He further noted that there are 12.5 million accredited investor families in the United States that may benefit (the latest figure shows 13.6 million), even though coded real estate does not completely “democratize” the market.

Flight also noted significant advances in tools that can be made with real estate agents. He said Liberty is working with central cryptocurrency lender Blockfi to allow the use of real estate-backed security tokens as collateral and even to earn interest as a lucrative asset.

Still skeptical regardless of these points, Regev also called for an exciting call to platforms and issuers to take responsibility for users if a use case is to be supported.

“We have to protect the busy and busy ordinary people in order for them to survive, and we want their money to work for them.”

Source: CoinTelegraph

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