Blockchain’s potential in the real estate industry has grown considerably throughout the years but has almost always been limited to high-profile, multi-million dollar mansions or commercial properties such as hotels.
The former headquarters of CrunchFund, a venture capital firm founded by Michael Arrington, was sold via Propy, a blockchain-powered real estate platform. The San Francisco-condo was sold for $1.6 million and is a testimony to blockchain’s growing popularity in real estate
Propy is a real-estate transaction platform that empowers buyers, sellers, their agents, and escrow agents to close a traditional real estate deal entirely online. The purchase offer, payment and deeds are uploaded to an immutable blockchain.
The sale of a condo that served as a headquarters to venture capital firm CrunchFund managed to slip through the media radar but nonetheless marks a very important step in real estate. According to the company’s founder, Michael Arrington, the San Francisco apartment was recently sold for $1.6 million via Propy.
The blockchain-powered transaction platform received nothing but praise from Arrington, who is also the founder of online media outlet TechCrunch. In a May 23 tweet, he said that Propy’s platform was a “stellar product” that has become increasingly popular in the real estate industry.
Propy completed its first deal in 2017, and its first US transaction in Vermont 12 months ago. Worldwide, they have assisted in some form in over 60 real estate transfers. This includes auctioning a 17th century Italian mansion and UNESCO site on its blockchain.
The median price of a house sold on its platform is around $1.5 million, said Karayaneva, though the value of the houses is steadily increasing. About 20 realtors have closed deals on the platform, though 3,000 have signed up.
the sale of CrunchFund’s former HQ doesn’t even compare to the price of luxury properties on Propy’s platform, it marks an important step both for the company and the entire industry. With the median home value in San Francisco currently around $1.3 million, blockchain-based real estate sales has become even more available to average homeowners.