A Manhattan man decided to list his building in Ethereum as an NFT, and the price plunged by 40%, recording a $12 million loss to overall value. The devaluation was due to the crypto crash, followed by an Ethereum value drop in June.
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Office as an NFT?
Minted around one month ago, the office building worth $29 million was listed on Opensea NFT Marketplace for 15,000 ETH. Unfortunately, there was a 40% drop in Ethereum value which caused the building value to drop to $17 million within days. As a result, the building was never sold as it was taken off the list by the office owner due to devaluation. The office is a 7-story elevator building near Madison Square Park in Manhattan, and it’s owned by a local landlord Chris Okada. Chris bought this office for $16.25 million in late 2021.
The owner wrote on Twitter that he has taken the NFT off the list and will be relisted with an updated price covering the loss. He said the NFT would be listed for 26,500 ETH, equivalent to the original property price, covering all losses. And he did. With respect to the current ETH price, the building is now worth around $30 million. As the ETH price recovers in the coming days, it will add more value to the NFT. Even if ETH just recovers the 40% price plummet of June, the building will experience a considerable price appreciation of $12 million, making it a $42 million office.
The office is relisted for the amount quoted and is on sale already till July 15, 2022. After that, the interested buyers can approach the buyer to negotiate the price and discuss the ownership transfer. The owner said that more than 8 potential buyers had approached him.
The property’s exclusive ownership will be transferred just like a regular property except for the payment. The owner will have to sign and do the rest after buying it from Opensea. Chris wanted to combine the interest of NFTs with the value of real estate and come up with a unique idea. He tried to bridge the non-fungible tokens with real estate on-chain.
Conclusion
People are experimenting with the idea of NFTs and being pretty naïve to the concept of bringing on-chain value that is not bothered by the time. However, we’re still in blockchain infancy, and the problem like property devaluation due to price drops still need to address – counting on developers.
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sources: opensea
author: mnmansha
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
