Blockchain Takes Manhattan

Blockchain Takes Manhattan


– [Narrator] Welcome to New York City. The crown jewel of the real estate market. Everybody wants a piece. And now, thanks to blockchain technology, that may very well be possible. This $36.5 million development is being sliced into digital shares, or tokenized, as it’s called, so that investors around the world can own as much, or as
little, as they can afford. – We have the typical bank
financing on this project with a conventional bank, and
this loan matures in January. We’ve decided to take a right turn and tokenize the debt
here on the property. The construction is 95% complete, we are starting to get inspections
in the next week or so. – We have a bank deadline on us, where we have to sell a
certain amount of units or repay the entire
loan by a certain date. If construction’s been delayed, if the market turns,
if competition pops up, and we’re not going to be
able to hit that deadline, what do you do? So by tokenizing the debt, it gives everyone breathing room to sell at a normal pace with the market instead of against it. – [Narrator] The people
behind this offering reside across the East
River, in that other borough. Here, the blockchain start-up, Fluidity, has teamed up with
broker-dealer firm, Propellor, to generate tokens by
crafting smart contracts, and in so doing, they
could be changing the way we all do business in the future. – When we started to look
at the real estate industry, it’s probably one of the
most inefficient industries that exist currently. You have a lot of
middlemen, a lot of lawyers, a lot of bankers and
just being able to create something that has real impact
on an industry like that, I think you’re looking at
significant disruption. – [Narrator] But for a project determined to eliminate middlemen, there’s
a lot of people involved. – Motivator.
– Coder. – I’m a lawyer.
– Facilitator. – Strategy.
– Project Manager. – Developer.
– Co-founder. – I’m just the broker. – I’m a fan. – [Narrator] An important
party that is absent in this equation is a bank. – There will not be a bank involved. – [Narrator] The process
goes something like this. These guys create tokens
on the blockchain. The tokens represent
the condo unit’s debt, and can be traded as private securities. If token holders sell their shares, the purchaser can either
preserve the tokens on the blockchain, or cash them out, thereby dissolving
these tokens altogether. This, theoretically, would
produce more liquidity to a notoriously ill-liquid market. – It’s a hard, asset-backed, secured loan. – We’re taking private securities and we’re putting a digital
wrapper around them, which makes it easier to
track and easier to transfer. – There’s only four assets
you can own in the world. Stock, a bond, a currency or a commodity. And we think every single one of them’s gonna get digitized. Tokenize the world. – [Narrator] And that’s already happening. A UK company recently
tokenized this Andy Warhol. Now, 100 people own 31.5% of
this $5.6 million painting. And when it rises in value,
the tokens will as well. So, is the same thing happening with New York City real estate? – Literally, 25, 30 million people can own a piece of this at a dollar a pop. When has that ever been possible? – [Narrator] Technically,
it’s still not possible. At least, yet, that is. Many hurdles remain before this becomes a democratizing force for the masses. Not least of which is the
fact that these tokens are only available to
accredited investors, keeping the barrier of entry high. Open only to the rich. But all of this is very new, and hasn’t yet fully impacted the system. Blockchain innovations like this one, clearly has the potential
to disrupt the way we do business, and even the way we define the very things that we own. – You know, if there’s another downturn, and banks say, oh, we have
a hard time lending now, okay, well, I don’t need you, because I can tokenize
my loan that I wanna use to buy that condo there. And that’s what I’m gonna do. So now we don’t need banks anymore. That is what’s crazy.

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    wakeupscreaming

    America. Where the best minds waste their time finding new ways to create passive income, or how to mine wealth out of other people.
    Cancer and countless other diseases remain with no cure.
    Priorities.

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    Largo Corto

    this sounds like a stupid concept. This sounds like a subprime loan in a blockchain. Because if you cannot get a loan to cover the pre-existing loan payment, then you are already a risky investment. These are just charlatants who want to use the hype around cryptos to make easy money. One is a real estate agent whose job is to sell homes and offices. Through this, he can now easily sell it to people who think they are making a great investment because the words token and blockchain are involved.

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    J Wolf

    What did I just watched? I am a doctor with an MD, PhD and an MS from top 10 US medical schools and this seems like the most complicated thing I ever saw. I don’t get any of it. I might have finally become dumb or this thing is a scam to raise money and the investor owns nothing unless he out smarts the other investors. What was that? And why is everyone in the video typing computer programs for a fixed real estate transaction.

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    Anne P

    2:25 they sell asset-backed securities in form of token. It means they owe you the money you buy their tokens and so must repay you the debt with interest rate. By buying tokens, you lend them money so that they can pay the construction/operation cost. You don't have any rights over the underlying assets (buildings) because they issue loans, not equity (ownership to the buildings). Therefore, you profit from interest rate of the loan, but not from increase in value of the asset. There's nothing crazy here, just the fundamentals of investment.
    The real estate agent is either an idiot who bragged about his ignorance over crowd funding, investment and blockchain or a fucking moron who tried to scam people by overselling existing concepts.

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    David Iola

    No one has the expertise to write absolutely secure smart-contracts on the Ethereum network given solidity's recency. Wouldn't trust my $1mil real estate bet in the hands of some "blockchain" developer

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    crypto Surveyors

    this is an amazing idea as long as there is a minimum amount one can invest such as half an apartment while it rents on a yield backed by a stable crypto coin.

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    Higher Frequency

    So it’s only for the rich because of high barrier of entry? And they also want to get rid of the banks? I guess the poor and middle class will remain [email protected]&!! Seems like they are the real middle men why solve a problem only to be worse than the one existing already

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    J Fraser

    You're still going to need buyers for this "tokenised" secondary market you're creating, in a downturn that isn't necessarily going to be easier.

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    N J

    Wouldn’t it just be like a private unit trust? So what if you want to sell your token? You still need a buyer if you are selling. What if no one buys your token? Then it’s no different to any other illiquid asset…..seriously hasn’t the world seen enough of this bs yet?

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    John Wayne

    Check! Buy some tokenization, Wait till it goes up in value, sell at the fever pitch top, get fiat currency, wait for the crash and buy the entire building in the depressed market and now you own the thing outright and paid cash and still didn't need the bank. BRILLIANT!

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    Fruit and vegetables

    case use for everything and blockchain everything
    no more people fucking things up
    and trying to cut corners for money
    or cheating people
    this will solve it and create a new
    way to run the world …the coin will take people who are middle class or even poor nerdy kids who bought in early and make them the new wealth and money. case use for everything even the DMV can implement this and they will.. IDs as well its mind blowing to see all things get into it

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    Andrew Freeman

    and……the Onus is on the client/customer/naive millennial to convert their cash into a unfounded token to then buy from an unfounded company…

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    Engineering Alpha

    There's nothing new..tokens are equivalent to shares,liquidity is still dependent on interest of market participants just like listed stocks,even if a stock is listed on the exchange and nobody wants to trade it,spreads will still be wide and trading volume will still be miniscule. If you all you have is a hammer,everything looks like a nail. You don't understand the real value of blockchain technology,that's decentralized exchange..not "tokenizing" everything that you can get your hands on

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    Mike Alpha

    Sounds like there is going to be a lot of case law because there is a lot unprecedented lawsuits about to happen due to block chain. Hope 5he judicial system is ready for it. ( doubt it )

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    Robert Ojeda

    Something of value has to be traced back into currency, and that currency comes from assets, and any end product has to have its own tax and if it doesn’t then you’re in trouble with the government, please tell how are getting rid of or in this case getting away from still not paying it’s due tax from a product?

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    powerlinkers

    This will end up like fractional reserve banking and majority of investors will be scammed at first and second phase.

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    Dan Rowe

    This sounds borderline pointless and executed poorly – a pyramid scheme, but hey atleast it uses the buzzword of 2018.

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    2Hedz

    What's crazy is to think that you can tokenize your loan in an economic downturn…so who is buying these tokens in a downturn again? Oh yeah…nobody. This tech has super promising potential, but it won't upend human nature.

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    Charlie Gray II

    Beginning to grasp and internalize the scope

    *********************
    Structure of a Contract
    *********************

    i.e. `Smart Contracts` in Solidity very similar to classes in object-oriented languages.

    C++ programming, etc. and unleashed `Creativity` OMG!

    Respectfully,
    Clg10Jan2019

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    Shawn Tillery

    Security Tokens are revolutionary. But, the idea is to tokenize the assets not the debt/loan. There's no value in the debt. The value is in the property.

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    Zaiden Hendricks

    The last two months, I have made over $60,000 from Bitcoin, but my success never started that way as I had made substantial losses before my turning point in the Crypto space. I bought *2Btc last year which quickly rose in the bull run but eventually lost most of it and sold off what was left. That was the last I would ever have to do with bitcoins until I was introduced to Mark Hall first of, he asked to know my trade experience. He then gave me a quick insight on what to look out for when choosing a platform and a bunch of other things most experienced traders may never tell you. Most importantly, he introduced me to his specially designed layout and provided me with professional advice and accurate trade signals. With his system, trading has become easy and profitable, and I want to spread the word and thereby help as many that are in my previous unfortunate situation. For all questions, you can reach by **Mail ([email protected] com)

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    Steven Z

    It seems like a lot more labor and trouble to get this cyrpto into the system than simply having a centralized bank.

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    Robert Natiello

    How do you prove ownership among various owners when its time to sell? How do you gather the token owners or inform the new single buyer ( if one buyer) that all token owners agree to sell to you? Is it such that the buyers token is able to dissolve the sellers token/s ( all of them) ?

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    CrypTalk App

    And it’s not only Manhattan that’s blockchain is taking over. Check out new social media “Cryptalk “ and stay tuned with all the news!

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    adrianTNT

    3:25 Oh, I get it, the rich guys are making sure small players stay out of the market. NOT what blockchain was all about but oh well … 🙂

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    stripes

    How stupid can you be to think that the BIG BANKS will just let this slide?
    Token or not the bitcoin market is 100% manipulated like it was by bitfinex with tether.
    Sorry to burst your bubble but democracy = dream
    Fascism and corporate law thats what is owning the world.

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    kony89boba

    My love for cryptos and the technology behind them is huge, that's why I’d want to share this interesting story with as many people as I can. I lost a lot of money and way more than half the value of my BTC which I purchased at $9,428. I was devastated and got desperate seeking options to recover my loss when I stumbled upon James Long on youtube. After considering the odds, I contacted him via mail, and the result was life-changing. That's when I realized that it is ok buying loads of coins for a future that could moon or completely dip and cost you your Holding. Well, I couldn’t lose any further cos I wasn’t HODling again and I also chose to try out James Long's signals. He gave me a basic understanding of the benefit of trading over holding especially in a speculative market. He then provided me with his daily signals and trading patterns, and within a month, I was able to make almost 600% on my Bitcoins. James Long never asked me to give him access to my account, you can always join the winning team of a more experienced trader with already working and proven strategy. If you have any inquiries, you can reach him on (jameslong241 @ Gmail. com) and gain reliable profit with your little experience in crypto.

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    Jason Hsu

    so,transfer and dilute the asset bubbles to the High risk-resistant dudes,without dealing with the greed whiny commoners, SMART MOVE!

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    Farmer Corncob Nanja

    This is not blockchain and very risky! So if I lose a token privet key or something.. ur fucked! Ok bro it’s held in a firm/middle men. 😂 fools n scams

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