Tokenized investment fund VC

Tokenized venture capital funds provide a new way to invest in early-stage startups. Ana Balashova explores how this brave new system works and maps the biggest players.

The boom of crowdfunding and Initial Coin Offerings (ICOs) demonstrates one thing. That ordinary people have enough passion, curiosity, and money to invest in newly-launched businesses.

Token distribution campaigns raised a whopping $21.5 billion in 2018 alone, according to Coinschedule statistics. 

That number is almost as high as the global average quarterly amount of venture capital investments, at least according to the reports put together by PricewaterhouseCoopers and CB Insights. 

Venture capital investments

Retail investors still don’t have access to investing in startups. Or at least not at the capacity they would like to do so. And even crowdfunding platforms being quite popular at the time are not usually intended to produce any return on investment for registered supporters.  Tokenized investment funds could provide an answer.

Traditional venture capital funds are off-limits for the average person

The average Joe is keen to invest in startups. But how do they get involved and reap their share of wealth?

In the traditional venture capital (VC) world, limitations exist to protect unaccredited investors from losing their savings. Accredited investors require a net worth of more than $1 million before investing in traditional VC funds. Most VC firms have their own minimums too, often in excess of $1 million.

Tokenized investment funds could bring about a change.

With digital securities, investor protections can be hard-coded into the token itself. By doing that, you eliminate the potential for scams and fraud, allowing regulators to potentially relax the limits on investors.

Solving the liquidity problem

Another problem with startup investing is how to get your money out. Investing in a startup could mean waiting years for the company to execute an exit strategy or float on the public market.

Private investment in early-stage companies is incredibly illiquid. But tokenized venture capital funds could also address that issue by providing a secondary market for tokens.

What is a tokenized venture capital fund?

spice vc tokenized fund

Carlos Domingo is probably the best expert on the subject. He is a co-founder and managing partner of SPiCE VC, the first fully-tokenized venture capital fund. He also is a founder and CEO of Securitize.io, the compliance platform for digitizing securities on the blockchain. 

The company contributed a lot to making tokenized securities possible. For instance, they issued securities for 22x Fund and SPiCE VC, and also upgraded the security of Blockchain Capital, another major fund in the industry. 

Domingo agreed that tokenized funds might be a real solution to democratize investing in startups: 

“It’s the regulations that limit issuers from soliciting retail investors. Until people stop defrauding retail investors with investment schemes and scams the regulatory bodies have little incentive to change the rules. Digital securities encode these protections into the token itself, making it virtually impossible for the security to be issued or traded in a non-compliant way. We think that this is a great first step to creating a world where investment schemes and scams are so rare that regulators will feel comfortable relaxing the rules to include retail investors.”

Mapping the biggest players in tokenized VC funds

Hack Fund is another example which invests in 5-15 startups per year. Hack Fund then issues “stock certificates” or tokens that represent ownership. The tokens are recorded on a blockchain and can be traded publicly, providing instant liquidity. Hack Fund just partnered with telecoms giant Vodafone with the goal of scaling the startups in its portfolio to $100 million in revenue.

Mentioned previously, Securitize.io is a platform that helps digitize securities, allowing the tokenization of funds and fractional ownership. Domingo explains more:

“Our biggest achievement in 2018 was the development and deployment of our Digital Securities Protocol (DS Protocol) which allows for compliant trading of digital securities (security tokens) on the blockchain via multiple marketplaces and exchanges. The DS Protocol was a big step in delivering on the promise of liquidity for traditionally illiquid asset classes.” 

Currently, the company works with Open Finance Network (OFN) and AirSwap to solve the riddle of providing a compliant digital assets trade. At the same time, they are negotiating with more projects for enhancing their token’s liquidity. Amongst the potential partners are Blocktrade, BnkToTheFuture, Tzero, SharesPost, etc. Soon Securitize.io will list more tokens, issued by the company beyond SPiCE VC.

blockchain capital vc token fund

Along with Domingo’s SPiCE VC, some projects are also doing it right. Among them is Blockchain Capital. The project’s security token, BCAP, was just listed on SharePost Marketplace. 

Another contender is Swarm Fund. The project’s blockchain allows real assets to be tokenized on SRC20 protocol. As explained on the company’s website, amongst the digitalized assets available for further investing and trading can be “real estate, renewables, agriculture, tech companies, crypto hedge funds, impact investments (development projects and post-disaster rebuilding), infrastructure, and any asset or project that the community of SWM token holders approves.”

The team just helped to raise funds for TheArtToken, digital securities backed by 100% carefully selected work of art. At the time of writing, more than $16 million has been contributed to the fundraising campaign, but the security token offering is still going. 

Digital securities are “very challenging”

However, this new industry is not without its challenges.

“Issuing and managing digital securities is very challenging from both a technical and compliance perspective. We are facing these challenges and having good success, but they are never easy. One big challenge for the present and future is helping the broader market understand the advantages of digitizing securities over traditional methods,” admitted Carlos Domingo. 

Many tokenized funds that popped up merely disappeared or went silent. Here are some amongst those that didn’t work out as intended: 

Token Fund

Token Fund was quite successful after its launch in 2017. The idea was to allow people to invest in a bunch of well-performing cryptos in several clicks. And the project got some traction. But the management decided to pivot. 

They dissolved the fund during the fall of 2018 and dedicated themselves to building a new product, called Tokenbox. “A multi-fund, which unites portfolio managers and investors, with lots of great perks including partnerships and integrations, an ability to white-label the strategies, etc.”, as Vladimir Smerkis, company’s managing partner told me once in an interview. 

That was done to avoid legal complications. Tokenbox will not manage the money anymore, but rather monitoring all the activities and developing a user-friendly ecosystem for launching your own fund and investing in crypto assets. 

Still, 2018 didn’t bring much success to the project’s roadmap, so they are currently stuck in the midst of cost-optimization efforts trying to make ends meet while building the product. 

22X Fund 

An exciting investment opportunity that was supposed to allow anyone to invest in top-notch Silicon Valley startups. The startups were graduates of The 500 Startup Accelerator program, known for accepting only 2% of all applicants.

The Fund intended to raise $35 million from accredited investors from the United States (minimum investment during the main sale starting from $50,000) and all the rest from the other countries ($5,000 minimum investment for the main sale). The security coin offering is over, but it’s not entirely clear how much money was raised. The last update from the corporate blog is dated by March 2018. 

I addressed some questions to Santiago Bibiloni, who was listed as one of the project’s co-founders at the time of researching this story. But he never reached back. A week later his picture was deleted from the team’s section. Bibiloni’s LinkedIn profile still lists X22 Fund’s co-founder position as current.

The future of tokenized venture capital funds

Carlos Domingo, from Securitize.io, has some positive expectations about tokenizations of assets: “We anticipate that more assets will be tokenized. As far as predicting, it’s possible that in the future every significant asset will be tokenized. We are ways away from realizing this possibility, but there will be a tipping point where tokenized assets outnumber non-tokenized.”

How soon will it happen in your opinion? Go ahead and share your best bet in the comment section below.

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blockchain artwork

The world’s first blockchain auction took place last year.

A 31.5% stake in Andy Warhol’s painting 14 Small Electric Chairs was tokenized and sold to bidders who could pay with bitcoin, ethereum, or a native cryptocurrency ART. Each token share was determined by a smart contract on Ethereum. 

Is this fractional ownership system the future of artwork auctions?

The gallery behind the initiative, Dadiani, thinks so: “For the first time ever high-value, blue-chip art works will be available for everybody to own utilizing the unique [blockchain] platform.”

75% of Auction Houses Are Looking Into Blockchain

According to one of The European Fine Art Fair Reports from 2017, called TEFAF Art Market Online Focus, 75% of auction houses are looking into offering some sort of blockchain technology within the next five years.

The tokenization of assets is a huge theme across the blockchain industry. And, alongside real estate, the art world is among the first to embrace the revolution.

artwork blockchain stats

But Why Blockchain and Artwork? 

Let’s dig into some stats and think about it. 

Issue #1.  Even though art is considered a great investment, there’s no consistent data on value

The Mona Lisa was evaluated at $100 million back in 1962. More than 50 years later, in 2017, ERGO insurance specialists now estimate that figure at $750 million – $1 billion considering inflation and other factors. 

But there are only a handful of masterpieces in the world. So, the overall return on investment is quite unpredictable. Even the data points from different market players are entirely inconsistent.

For example, a well-known art expert, Melanie Gerlis, who combined “all the research on the broad market points to an average compound return on investment-grade art” came up with 4% annual return.  

Warhol blockchain artwork

When the researchers from Stanford Business School tried to do the math and analyze data from 1972 to 2010, they found out that the return was closer to 6.5%. And The Blouin Art Sales Index, popular amongst art dealers database, estimates a 10% annual return. For reference, the average yearly return from the S&P 500 was about 11.46% from 1988 to 2018. 

Even experts not sure about the changing value in fine art. How are average folks suppose to deal with all that?

By recording auction and gallery sale prices on an immutable, transparent blockchain, we could theoretically bring some clarity to art values over time.

Issue #2. Investing in art is not easily available to the general public. Selling art is easier for dead geniuses. 

Works by 52,105 artists appeared at fine art auctions in 2017 according to the Art Basel and UBS’s The Art Market | 2018 report. But only 1% of those names accounted for 64% of the sales (works priced and sold higher than $1 million per pop). 

According to the same report, nearly all artworks up to $1 million declined in value. On the contrary, the market for works priced over $1 million increased. The number of items sold in that segment grew by 76% along with the 50% value increase.

Successfully investing in art is therefore limited to those who can afford million-dollar auction prices.

Artwork on the blockchain

Apart from the price, think of the transaction fees. There’s no “fair” price for art. It’s just a matter of what are you agreeing to pay as a buyer plus fees (those are sometimes negotiable), that can reach up to 25% depending on the price of the piece. And don’t forget about the ongoing costs of purchasing such a valuable lot – insurance, video surveillance, top-notch security system, etc. 

All that means that you’ve got to have a couple of millions of dollars to spare if you are really into purchasing some fine art. And it’s not clear when you’ll be able to sell your acquisition in case you urgently need your money back. Those investments are amongst the most illiquid. 

Blockchain auctions, like Andy Warhol’s 14 Small Electric Chairs, could change this. By tokenizing a fractional share of expensive paintings, anyone can get into art investing, even with a small amount.

Issue #3. Fraud and lack of transparency 

The art market is not as regulated as more traditional investments classes. There is more temptation to do things wrong. And even when you deal with the most authoritative galleries and auctioning houses and paying the highest fees, there’s still a risk of fraud.

Let’s remember Christie’s case. Christie’s has reportedly sold forgeries from La Horde by Ernst Max to Heinrich Campendonk’s Girl with a Swank. More than that, The Independent claims that at least 20% of the paintings held by world-class museums are fake. 

But imagine, what if there was a database with the history of ownership and proof of the authenticity for all the pieces of art ever existed? Doesn’t it ring “blockchain” to you? 

Who’s Leading the Artwork Blockchain Evolution?

The revolution is already happening. At the moment there are two main types of players in the field: 

  • Those solving infrastructural problems – e.g. recording and verifying artwork authenticity on a blockchain, creating a service solution those tokenizing artwork. 
  • Those democratizing fine art as an investment – e.g. companies selling fractional ownership of artwork via token sales or auction.

Here are some of the biggest players:

Blockchain App Factory

Blockchain App Factory is somewhat equivocal and mysterious. They provide an extraordinary number of services (due diligence, creating of a token, auditing, and legal services for assigning a value for the token).

ArtWallet

ArtWallet is a “blockchain-based ecosystem” which aims to verify the authenticity of artwork by tracking its ownership, history, and provenance on a blockchain. Their whitelist is opening soon.

Monegraph

The much more open and clear Monegraph allows artists to register their works on the publicly verifiable Bitcoin blockchain. It provides users with a certification of authenticity for the tokens, representing pieces of art.

Blockchain Art Collective

Blockchain Art Collective also aims to track and prove artwork authenticity. It tags artwork with a tamper-evident, NFC-enabled Certificate of Authenticity, complete with timestamps, to a blockchain. (Blockchain Art Starter Kit starting at $20).

blockchain art collective

Verisart

Verisart was founded by Robert Norton, the former CEO of Saatchi Art & Sedition Art. It strives to build evidentiary infrastructure for artworks and collectibles that are verifiable by anyone based on a public blockchain. 

Artory

My personal favorite from this list is Artory. Founded in 2016 by Nanne Dekking, the former chairman of Sotheby’s, the company tracks provenance of fine artwork and collectibles. Due to his background, Dekking has some aces up his sleeves, so in November Artory partnered with Christie’s New York to sell $318 million Barney A. Ebsworth collection and keep the transactions data recorded on its blockchain. 

Maecenas

Maecenas is the company that powered the sale of 31.5% ownership of Andy Warhol’s piece last summer. Maecenas is currently working to organize a second auction, this time featuring Picasso. The auction is preliminarily scheduled to be held during the 1st quarter of 2019. 

Masterworks

Masterworks was founded by Scott Lynn, who has been a passionate art collector for more than 15 years and accumulated a pretty impressive selection of Abstract Expressionism including Mark Rothko, Willem de Kooning, and Barnett Newman. And now Masterworks offers a clear framework for its users along with well-researched analytical data about the investment in fine arts.  The team has acquired Warhol’s “1 Colored Marilyn (Reversal Series),” and at the moment of writing 97% of it has been reserved by retail investors. A minimum investment of $1,000 will give anyone 50 shares of an artwork. Payment can be made via bank transfer (for the citizens of the US and Canada) or via credit card (5% fees applied). The next on the Masterwork’s selling list is Claude Monet. 

Masterworks blockchain artwork

TheArtToken (TAT) 

TAT was issued by Swarm, a non-profit provider of open infrastructure for digital securities. The project’s team already owns a pre-funded art collection of $4.1 million value and currently is in the process of its own token sale that is due to end at the middle of January 2019. Each token sold represents partial ownership of a Post War & Contemporary Art collection. It is stored in a Swiss bonded warehouse and managed by FineArtDigital AG.

R.A.R.E Digital Art Network

R.A.R.E is a company selling digital artwork. Using blockchain technology, each piece of digital artwork can be given a unique identity or a limited run. It brings scarcity and value to digital artwork that was never possible without blockchain.

Snark

Snark is selling “atoms,” which represent fractional ownership of Eve Sussman’s acclaimed video 89 seconds at Alcazár. 

Conclusion

As mentioned before at BlockExplorer, tokenization of real assets is something I am very excited about. For now, the only thing that’s left to do is to relax and observe how all of those startups will bring the technologies of the distributed ledger to a new level of adoption at least in the art space. 

Baby steps. 

How long will it take to allow anyone in the world to purchase a share of an authentic Rembrandt or Van Gogh in a matter of a couple of clicks from a mobile device? Go ahead and share your predictions in the comment section below.

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For $21,000, you can now buy a fraction of a student residence building, The Hub, in South Carolina. In exchange for your investment, you’ll receive a digital token that represents your share of the building’s ownership fund.

It’s part of a joint effort from Convexity Properties, a Chicago-based real estate investment firm and Harbor, the all-in-one tokenization platform.

This tokenization of real estate opens up the market to investors that might not be able to afford a full property or even the high minimums of traditional real estate investment trusts (REITs).

In 2018, an asset management company, Elevated Returns, sold tokenized shares in a luxury hotel in Aspen, Colorado. Investors received “Aspen coins” to denote their partial ownership in the project. The crowdfunding campaign, via Indiegogo, started on the 8th of August 2018 and ended on October the 1st, 2018, raising $18 million.

Aspen tokenized real estate
Investors received “Aspen Coins” to denote ownership in the luxury Aspen Hotel

However, only accredited U.S. investors were allowed to participate in the sale with a minimum investment of $10,000. “Accredited investors” are individuals with “earned income that exceeded $200,000 in each of the prior two years” or has a net worth of over $1 million.

These experimental projects point to a possible new future in real estate investment and blockchain technology. But how close are we to the realization of tokenized real estate? Block Explorer dives deeper into the various projects in their space, tracks their progress, and outlines the opportunities available.

Why Put Real Estate on the Blockchain?

The real estate industry experiences some massive problems.

Here are some of the biggest, according to a new report, Top Ten Issues Affecting Real Estate 2018-2019 from The Counselors of Real Estate (CRE):

1. The increasing interest rate on housing mortgages and overall political uncertainties make purchasing a house less and less attractive. 

2. The new immigration laws and consequences of urban infrastructure are most likely to contribute to the further price increase of newly-built real estate objects. 

3. The boom of e-commerce makes it unviable for many retailers to run a brick-and-mortar business, so the demand for commercial real estate objects is going down. 

Moreover, disruptive technologies are reshaping the industry altogether. As another research paper called Emerging Trends in Real Estate (for the U.S. and Canada in 2019) by PricewaterhouseCoopers points out, investing in real estate related technologies will accelerate drastically. 

It could reach $5.2 billion in 2018, which is significantly higher than $1.3 billion poured into the field in 2014. And blockchain technologies are named amongst the 13 real estate industry disruptors. 

And it’s not surprising. Distributed ledger technologies can potentially patch a lot of holes in the industry. Firstly, it could help create a fully-transparent real estate registry. Secondly, it can create buying opportunities for financially-limited investors, through fractional ownership. 

Real Estate blockchain

The Biggest Real Estate Blockchain Projects Right Now

Numerous blockchain startups have flocked to the space, promising easy access to real estate investment to anyone curious to get in. And not only to accredited investors. Among the most noticeable are:

Atlant

Atlant offers Ethereum-based peer-to-peer rentals and tokenized real estate ownership. However, even though the prototype has existed since September 2017, and the public beta of the product was launched in October 2018, there’s still a lot of work to do. The company is still struggling to acquire all the necessary licenses and there’s not much clarity on the timeframe. 

Blockimmo

Blockimmo is striving to facilitate “an accessible, streamlined real-estate market” through tokenized real estate shares. Their recent big news is the company’s business model approval by the Swiss Financial Market Supervisory Authority (FINMA). It also launched a testnet with two property listings samples. 

Real properties supposedly will be available on the platform in 2019. It’s all sounds very promising. Yet, when digging more in-depth to the current company’s website, it appears to be clear that the team has a long way to go.

Some worrying discrepancies can be found in the “frequently asked question” section. It claims that “submitted real estate properties are carefully curated by our team of experts”, but the current number of employees is four, and three of them are developers. So, those are probably not a great fit when it comes to real estate evaluation. But let’s give it some time. 

Jointer.io

jointer.io is another startup in the field. With an attractive motto “using blockchain & AI to democratize commercial real estate,” they want to go one step further and offer tokenized real estate not as a form of investment in one property but as an index, combining several properties. 

Sounds great, but so far the website itself doesn’t articulate much about the progress and it hasn’t launched yet. A popup announcement saying “50 investors viewed this offer” when someone is trying to check out what the company has to offer is also quite sketchy. 

Meridio

Meridio also promises to “democratize real estate,” boasting lower investment minimums, reduced transaction costs, and increased liquidity. It invites you to “browse the properties,” but to do so you have to register on the platform. We’ve requested the access, though at the moment of writing there was no feedback from the team (see below). And the project’s progress, judging by its corporate blog, hasn’t been very obvious recently.  

Meridio

Brickblock

Brickblock is one of the earliest players in the tokenized real estate field and seems like they are on the right track with legal, partnerships and overall progress. It’s yet not clear if the project truly meant to expose any investor to the possibilities of owning a fraction of a real estate. While writing this piece we tried to register on the platform and there were some roadblocks on the way (despite the claims that it will only take 15 minutes to register). 

Brickblock real estate blockchain

The link to verification application didn’t arrive via text message as promised, the verification code to launch the identity confirmation chat wasn’t working (screenshot below). But overall it feels like an excellent start with an actual perspective of getting somewhere. 

Brickblock real estate blockchain

What’s Next For Tokenized Real Estate? 

Even though the true “democratization” of real estate and the ease of investing in tokenized assets might solve a lot of problems, there’s a long way to go in many regards.

Especially due to numerous regulatory issues related to tokenizing real estate, notably if we are talking about the global availability of such assets. 

For now, it will be difficult to usurp the traditional securitized real estate investment trusts (REITs).  Realty Income Corp., offers Retail Stores REIT investment and currently trades at around $62 per share with monthly dividends of about 0,3% – 0,4%. Simon Property Group also pays out quarterly dividends of 1%-1,3% and the price of approximately $164 per share at the moment of writing. 

I can purchase it with a couple of clicks using the mobile application of my bank with no legal complications and even my taxes are paid automatically from the profits received.  

There’s no doubt that tokenized assets are the future and it might be much more convenient and even possibly more profitable to the holders. However, there’s still a long way ahead for it. So let’s hope that an infinite number of passionate brainiacs invading the space will have enough energy and determination to figure it out. I keep my fingers crossed. 

And what do you think of tokenized real estate investment? How long will it take us to get there? Go ahead and share your thoughts in the comment section below.

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crypto mainstream

To round out the year, we asked our Block Explorer writers to tell us what they’re most excited about for blockchain and crypto in 2019. In this piece, Ana Balashova looks at the startups hoping to take crypto mainstream, as well as the tokenization of assets and next-generation blockchain projects.

This year wasn’t all cuddly and fluffy for crypto. The fearsome bear entered the market and trampled everyone’s dreams of becoming a billionaire in a couple of months. And although crashes aren’t new to crypto, this year things are a bit different: many more people are involved and larger mainstream brands are embracing digital money as payment. 

Banks, governments, and regulators are accepting the fact that bitcoin is here to stay. All of that makes me seriously enthusiastic about crypto in 2019. Here’s the list of the things I’ll keep my eye on:

Universal Crypto Solutions

Even though Coinbase has more than 20 million users and Blockchain.com boasts more than 31 million registered wallets, crypto is still far away from mass adoption. And the convenience of using it is still only appreciated by the more techy part of the population. 

Real-life example: if my mom would like to purchase bitcoin she always has to ask me to do that. And she is quite capable of using traditional plastic cards or other financial services like money transfer through a mobile app on her phone.

So, there’s still room for improvement in creating those universal solutions, both for consumers and business. One that will work internationally and will allow seamless transactions from crypto to fiat and back. One that boasts a super intuitive interface and straightforward features. That’s why I am quite curious to follow Abra, Blockchain, Purse, Bread, Ethos, EOS Lynx, STK, Metal, PundiX, Request Network, Monetha and all the numerous projects in the field.

Pundi x
A Pundi X point-of-sale solution

Securitization and Legal Clarity

Authorities of various countries are cooking up all sorts of crypto regulatory frameworks. The choice of crypto-friendly countries is growing (Malta? Gibraltar? Finland?) That alone makes the existence and the future perspectives for cryptocurrencies much more compelling. 

Even without proper regulations, as much as $22 billion was raised in Initial Coin Offerings in 2018 according to Bloomberg’s numbers.

There are a lot of question marks about those projects. However, the development of the legal side of the story will most likely make a positive impact on the industry. Not to mention the whole new infrastructural solutions that have to be evolved to make it work: properly regulated crypto exchanges, platforms for legal Security Token Offerings, the whole bunch of wallets for securitized assets, etc.

As for now, savvy entrepreneurs with successful track records in the business world are joining the bubbling startups in the crypto space or collaborating on ones. Like Overstock.com (OSTK at Nasdaq, with a market capitalization of more than $420 million at the time of writing) and its founder Patrick Byrne who is planning to sell Overstock’s retail business to fund a crypto platform, tZERO.

Some real-deal startups are also considering new cryptocurrency financing opportunities, like Spin, an electric scooter startup from San Francisco. During this summer, the team planned to launch a security token offering, although they ended up selling their operations to Ford for around $100 million. 

That all adds up to bringing digital currencies from the world of tooth fairies and leprechauns to reality. 

Making Blockchain Great Again

In spite of all the awesomeness of distributed ledger technologies, there is always someone to complain. The transactions on Bitcoin blockchain are getting too expensive, or Ethereum got all clogged again because of a popular token sale, Cryptokitties, decentralized exchanges vulnerabilities, and so on.

So all the tools and projects that are supposed to improve what we have so far and to solve all related problems – is something I am personally very interested in. 

And, just to clarify, when I mention “problems”, I am talking about things like scalability,  interoperability, transaction costs, blockchain developers education, etc. Some of the exciting projects working on these problems are EOS, Aion, Wanchain, Ethereum, POA network, Zilliqa, and others).  

Zilliqa is one of the first to implement experimental sharding technology to achieve huge throughput

Tokenization of Assets 

As we know, one of the first applications of blockchain technology was digital money. And the fact that it created so much convenience, transparency, and speed of actual ownership made “tokenization” a viable technology for other assets. 

We could see gold -backed tokens (like OneGram, Goldmint, etc.), natural resources backed tokens (e.g. Petro, Venezuela’s controversial cryptocurrency backed by oil), and so much more than that. 

With the further development of crypto-related regulations and taxes, more projects tokenizing real estate, pieces of art, rare cars, shares in Silicon Valley startups etc., will pop up. 

And the fun has already begun. In October, Forbes announced the first tokenized real estate project in New York, ran by Propellr, the platform for digital assets management and Fluidity, the trading and tokenizing solution.  

It’s already possible to purchase a share of ownership of off-campus housing for students at the University of South Carolina. The cost per share is $21,000. Currently, those are being sold by Harbor, the blockchain startup which raised $28 million of venture capital in a fully compliant security token offering earlier this year. 

And if you are looking for more affordable ownership options, there’s something interesting offered by Brickblock. The project in development is a 50-unit residential property in the UK. The team is raising £3.35 million by selling tokenized shares valued at £34 per pop. 

There are also some moves in the art world. 31.5% ownership of Andy Warhol’s “14 Small Electric Chairs” was recently sold at an auction run by blockchain startup Maecenas this summer. The total value of the sold tokens was $1.7 million with the total estimated worth of the artwork of $5.6 million.  

Tokenization of Real Estate on Mars?

I trust that weirder things will find their way to fully compliant blockchain existence. And we might be able to purchase frozen brain cells and other vital organs, square meters and milliseconds in cryogenic cameras, a fraction of space trip tickets (or maybe partial ownership of a cozy industrial loft on Mars), and the list goes on. I can’t wait! 

And what are you excited the most?  Go ahead and share it in the comment section below. 

Crypto Curious? Subscribe to the Block Explorer newsletter to get exclusive crypto insights before they appear on the site.

bigstock-Gold-Bitcoin-Crypto-Currency--213810058

2018 was epic. It started with the madness of altcoins rally at the beginning of the year. Followed by massive steps towards bitcoin and crypto mass-adoption made by regulators, large enterprises, and institutional investors. 

And it ended with the blood and tears of traders on the streets (we can still hear some of them screaming). 

Block Explorer is willing to reflect on the most important events that brought the industry to its current state. So, here are the major crypto announcements that shaped 2018: 

1. January: The Perfect Month to Ban Something

Bitcoin price: $14,112 (on the first of the month)

The beginning of January was marked by the huge news splash made by the South Korean government. They unveiled plans to ban anonymous trading on cryptocurrency exchanges over tax avoidance. And sent the police and tax-collecting authorities to their offices. 

As a result, the bitcoin price decreased by $2,000.

At the end of the month, crypto was in trouble again, as Facebook decided to ban all ads related to digital currencies. Since Facebook marketing was a major driving force for many initial coin offerings (ICOs), it cut the source of easy promo for many blockchain startups. 

2. February: China and Bankers Join Forces Against Bitcoin

Bitcoin price: $10,264

It’s not easy living in China without the freedom of internet browsing, catching up with friends on Facebook or just googling. All of that is restricted by the “Great Firewall of China.”  At the beginning of February, the list of undesirable foreign websites was supplemented with bitcoin-related websites to eliminate the financial risks for Chinese citizens.

Next, the head of the Bank for International Settlements (BIS) called bitcoin “a bubble, a Ponzi scheme, and an environmental disaster”. The media went nuts over it, and the more they referred to it in the following articles the more the price of crypto was sliding down, falling as much as 14% in one day. 

3. March: SEC has a Crush on Crypto Exchanges. Google Doesn’t

Bitcoin price: $10,433

Some more heartbreaking and uncomfortable milestones for bitcoin and crypto included the U.S. Securities and Exchange Commission (SEC) announcement made in March. They obliged all cryptocurrency exchanges to go through the registration procedure through the agency. 

One week later, news from Google set an overall moody tone of the blockchain scene: the company joined Facebook to ban all cryptocurrency-related ads. 

google bans crypto ads

4. April: India Joins the Strike Against Bitcoin 

Bitcoin price: $7,030

In April, crypto’s misadventures continued. This time the Central Bank of India (The Reserve Bank of India) banned financial institutions from allowing transactions from people’s accounts to bitcoin wallets. 

5. May: Goldman Sachs is Going Crypto, “Rich Dudes” are Boiling Over

Bitcoin price: $9,037

A little happy bitcoin rally happened when it was uncovered that Goldman Sachs had its own team dedicated to entering the crypto market. 

Although some people were are not happy about it. Including some very “rich dudes” that were on a mission to come up with the most-quoted insult for bitcoin. For instance, well-known billionaire value investor Warren Buffett referred to bitcoin as “rat poison squared,” and Bill Gates, one of the kindest billionaires in the world, labeled it a “greater fool theory”. 

Later this month the U.S. Justice Department started an investigation into bitcoin price manipulation. Oh, boy, it’s getting tougher.

But even in spite of all those troubles, crypto was still on a good path to wider acceptance. Or how else could you explain the 25 million crypto wallets registered at blockchain.com?  

6. June: Facebook is Stricken by FOMO  

Bitcoin price: $7,519

In June it was time for more bad news. It’s never enough in the crypto world. A panic sell-off happened in the first half of the month after Coinrail’s hack announcement. Even though this South Korean exchange was relatively small it led to a rapid 10% drop in bitcoin price. 

A couple of weeks later, big news came from Facebook who decided to reconsider the crypto advertising ban. Promoting initial coin offerings was still off the table though. 

7. July: Winklevoss Twins Keep Being Stubborn With SEC

Bitcoin price: $6,366

July was relatively calm for cryptocurrencies. Probably because most of the troublemakers were on vacation. But some news was still in the air, including the fact that asset-management heavy-weight BlackRock was looking into crypto assets and another SEC rejection of exchange-traded fund (ETF) proposal filed by Winklevoss twins. 

8. August: Too Many Rejections of ETF Proposals

Bitcoin price: $7,634

August was all about ETF proposals, their postponing and rejections. The bitcoin exchange rates struggled at first, but at the end of the month, after the U.S. Security Exchange Commission declined nine bitcoin ETFs, the price of the major crypto remained stable. How resilient is it? 

9. September: The First Crypto-Related Company Files for IPO

Bitcoin price: $7,192

Most of September’s announcements were quite positive. First, there was more news about Goldman Sachs jumping into crypto. The company’s chief financial officer Martin Chavez confirmed that the Wall Street giant was working on the development of bitcoin-based derivatives that will be accessible to the bank’s clients. 

At the end of the month, one of the leading bitcoin miners, Bitmain, spilled out their intention to run an initial public offering (IPO). And the application for the process was already filed. Bitcoin Cash prices (one of the assets Bitmain is mining) surged up to 20% rapidly. 

10. October: Happy birthday, Bitcoin. Here’s Your Mass-Adoption

Bitcoin price: $6,619

More happy news to celebrate the ten-year anniversary of Bitcoin’s whitepaper. Big steps from institutional investors happened in the middle of October when Fidelity Investments announced the launch of a spin-off company, dedicated to crypto assets exclusively. The new firm named Fidelity Digital Assets was onboarding its first clients and still preparing for the grand opening for the general public in 2019. 

Also, the launch of the first blockchain phone, made by HTC, stole the headlines in October. 

11. November: Blood, Sweat, and Tears of Bitcoin Cash Fork 

Bitcoin price: $6,427

Fights over the Bitcoin Cash fork got completely out of control. The battle between BCHSV (Satoshi Vision), lead by Craig Wright, aka Fake Satoshi and BCHABC (Adjustable Blocksize Cap), driven by Roger Ver, previously labeled as Bitcoin Jesus was observed by the entire industry. It triggered huge crypto volatility, increased trading volume and, as some experts might say, a bitcoin nosedive to a new bottom. And we are still in the middle of that roller coaster.

On the other hand, we had some good news too. Like the announcement about the first state in the U.S. will be accepting bitcoin as a tax payment. Way to go, Ohio! 

This year is not over yet, and we don’t know exactly what the future holds. As you know in crypto, “one day you are in, and another day you are out”.  But we promise to keep you posted. 

And what was your favorite news break of the year? Go ahead and share it in the comment section below.

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