Hey folks,
I've noticed that a ton of crypto projects are still all about hype and quick gains. But there’s definitely a rising interest in real-world applications that actually hold value over time.
One thing that’s been on my radar is the tokenization of real estate, especially when paired with payment solutions. The thought of linking blockchain with physical assets could really boost trust and long-term growth in this space.
What do you all think? Is real-world asset tokenization gonna be a key player in the next market cycle, or are we gonna keep seeing hype-driven projects rule the scene?
Would love to hear your thoughts and any experiences you might have.
Is tokenizing real-world assets like real estate the next big wave in crypto
19 replies 26 views
tokenisation is definitely gonna be a big thing but only the well established and battle tested projects will really play a serious role in it and as you can imagine they already have high marketcaps.
the retail will always be attracted by hype and huge returns and that will come from smaller projects who will jump the mainstream train and create hype.
many people will get rich, many people will lose everything. just as usual.
Idea of it has existed since altcoins came along, but those ideas lack regulatory compliance, or if they try to be designed around regulatory compliance, tokens themselves become pointless, centralized and not cost effective. They are basically just glued on working centralized system, that works better without those tokens in the first place.
This is unless they figure out the way to build kyc in chain, that preserve privacy, is cheap, instant and have same features as current systems have that most i don't even know about.
Good luck with that. Such system have been tried to build for nearly 10 years now. And even if it would eventually work, it would need adoption and actual need for it from the issuers.
D4rkFalconSenior Member
Posts: 308 · Reputation: 1050
#4Sep 20, 2020, 01:39 PM
Do you think real-world asset tokenization will play a major role in the next cycle, or will hype-driven projects continue to dominate? The real answer based on the whitepaper the research and how big real world asset is, I do believe that RWA project is really gonna hit the market hard, if crypto can unlock the tradfi and bridge that gap into crypto universe this gonna unlock more liqudity into the market.
But the problem right now is people didnt believe enough with any kind of RWA project the last promising project that I know called Plume is good but now has slower adoption and the token is plumetting, if we can bring the people trust this one gonna big IMO
Maybe or it won't be.
There's no actual hype from it on the last bull run and so, it can be capitalized by the projects by the next cycle and that's around 3 years from now.
I think many of these projects have been driven by hype and so to no contest, if it will be driven by hype it won't be this time.
RWA & other token categories are still something other than meme tokens, regardless of whether RWA will play a major role or not in the next cycle. If you're someone who wants to profit from the next cycle, I think it would be better if you buy L-1 tokens rather than category tokens such as Ethereum (ETH), BNB (BNB), Solana (SOL) or Tron (TRX).
Been hearing that for years now and I've been with those projects before I guess and that they want to tokenized real estate and even some of those virtual lands that was hyped in the metaverse trend and that most of us think that it will be the next big thing are probably now gone. A lot has emerge even pre-pandemic with that kind of vision but most of them are gone for good and if you look at Real Estate tokens here: https://www.coingecko.com/en/categories/real-estate, I think only PARCL rings a bell and probably it's with those spams around the airdrops that takes on it.
Well, I think there will be a time that this will be a thing since tokenization is the future and real estate wouldn't be an exception to that but I'm talking it will probably decade/s from now, the real estate of today isn't that broken afaik and it will work as per usual.
No, if real estate contracts that include delivery in 12 or 24 months are considered high risk unless there is a highly transparent regulatory environment, then what about digital contracts that do not meet the minimum legal requirements?
RWA is not a big thing anymore especially for real estate. The fact that real estate tokenization is lacking of demand. It has been exist since before 2020. There were some RWA real estate related project such as propy, but it's more like a zombie project.
There's no need tokenization for the real estate because it has certification. So i don't think tokenization will play important role here.
If you're not believing with what i said, then take a look at the Propy token on CMC. So you can see how it has never got hyped ever since it was being introduced. RWA is only important for some things such as US trasury or etc.
Canton network is the best example in what sector RWA is playing an important role.
chris.deg3nFull Member
Posts: 95 · Reputation: 477
#10Sep 21, 2020, 03:24 PM
That's correct since even if we say that they really have those fix timelines on when they deliver those assets it could still be seen as high risk for investor, especially if those digital contracts they brought does not meet those minimum legal standard and that one adds more the risk.
So what I've seen towards those matter is another promises and I don't see any protection given to investors, since everything is questionable. They always say that its the next big thing but this is another crazy stories so they can sold those digital products they are selling and stole the money of people.
Tokenizing real-world assets sound good on paper, but without strong legal backing and transparency, many investors will still see it as risky. The technology itself is not the problem. The bigger issue is trust, regulation, and whether investors are actualy protected if something goes wrong. A lot of projects also overhype the next big thing narrative, so people should be careful and not blindly trust every platform or promise.
Crypto is all about hype and getting in fast and leaving even faster. Also real world asset tokenization is cool and nice but the NFTs or tokens that come with it have to have a usability because without that their prices will be dropping consistently.
CyberWhaleSenior Member
Posts: 169 · Reputation: 1151
#13Sep 22, 2020, 12:05 AM
This is not the first time that it would seem like real world assets are the next big thing in crypto. Apparently, there are been several cycles of hype and several projects in that regard but all of that hype and projects have only proved that the current shape and form for RWA in crypto is not it. The promise is there but right now, no project has been able to walk the talk and I reckon it would continue to be that way in the few years to come.
SilentGuruSenior Member
Posts: 432 · Reputation: 1445
#14Sep 22, 2020, 05:51 AM
The only real world asset tokenization that achieve massive success is tokenizing stocks and commodities, people in the past have come up with myriad of idea about tokenizing real world asset including tokenizing real estate but real estate is where they failed among many others. The only way I can see real estate tokenization could become success is only if the deployer is the government themselves.
One important thing to know why tokenized real estate doesn't work out because current legal system can't handle it yet and don't recognizes token ownership as holding title to the property, to go around it, these real estate tokenization company take care of it by making the title to the property belongs to the LLC itself. They give you token that have no right to current legal system, and make your property belongs to them.
RWA may not be a big thing in the crypto industry yet, but we can't say that there aren't any good projects in this category either. One that's becoming something in the RWA sector is Ondo (ONDO), it's even currently ranked #40 on Coinmarketcap, isn't that something?
I don't mean to be patronizing, because I'm sure you're aware of Ondo (ONDO) too, but I just want to let you know that RWA isn't always bad & associated with hype, even though most of them are moving because of hype .
Real estate requires high legal regulation and escrow accounts with monitoring of developers promises and division of obligations into business plans with penalties for any unreliable developer. In short, without government intervention and high regulation, real-world asset tokenization will turn into the easiest way to commit fraud.
I really like the idea of real world asset tokenization, I've always had the idea in my mind that if something like that could be introduced into cryptocurrency that it will bring some sanity to change the narrative about the many projects which doesn't represent anything real in the market. I believe that RWA tokens will become a big deal in cryptocurrency because crypto investors are looking to put their money into something that represents a solid or physical asset after memecoins have somewhat diminished the trust in the crypto market.
RWA tokens are good to invest money into but it is also important to know that scammers will also be listing fake RWA tokens so it is important to research before buying any and also priotize buying from reputable platforms. I believe that it is a matter of time before memecoins scam devs. begins to flood into RWA to perpetuate their scam projects but if you want to stay on the safe side you should only hold tokens of reputable assets.
I've been waiting for RWA to be tokenized for years when the markets were much better, would be great to tokenize rental properties in tourist towns, and receive % of revenue, tokenized airBnB etc.
sadly memecoins took over tokens, just like digital art took over NFT's, both side tracking full potential.
AFAIK, there have been projects that have been proposed like that. But because of lack of interest from the investors, none of them have become popular. Memecoins can't be compared to the RWAs and as well as other token niches. IMO, the memes won't be dead and even if they are not doing good, they won't be gone. As it's already put into the minds of most investors that there's money in it and it won't be changed. As for the RWAs issuing percentage of profit of the actual real estate and the dividends of it is actually the idea behind why it's made.
most memecoins have died and are never coming back. like 99% of them.
what is left is mostly globally recognised big memes that will stay for the culture.
there will never be a memecoin season like in 2024. but when the infrastructure is ready, RWAs mania can reach similar magnitudes.
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