Frequently asked questions

  1. Would the prices of these tokens be as volatile as cryptocurrencies? No, since the value of the property tokens is derived from the underlying asset in the real world, the value would not be as volatile as digital-only assets like most cryptocurrencies.

  2. What are the risks and challenges associated with real estate tokenization?

  • Market liquidity: Although one of the benefits of tokenization is increased liquidity, the market for tokenized real estate is still growing. As a result, investors might not be able to quickly buy or sell tokens at their desired price.

  • Technology risk: Real estate tokenization relies on blockchain technology, which is still evolving. Security vulnerabilities, technological failures, or flaws in the underlying blockchain could lead to loss of investment or ownership rights.

  • Fraud and scams: As with any new investment opportunity, tokenized real estate could attract bad actors who attempt to defraud investors through fake projects or platforms.

  • Due diligence: Evaluating the value of a tokenized real estate asset may be challenging, especially for non-experts.

  1. What are you doing about these risks?

  • We are making these tokens DeFi compatible, which helps significantly with creating liquidity. The 'secondary market' section of this paper goes into more details about liduidity for our tokens.

  • On a platform level, Estate Protocol is being built on the most cutting edge of blockchain technology, zero-knowledge EVM. ZK technology makes transactions cheaper, preserves user privacy, while still using Ethereum as the settlement layer.

  • Estate Protocol maintains very high standards for transparency, with various sources of third-party data provided to our users. We would soon come out with a guide for what people using real estate tokenization platforms should look for to avoid frauds and scams.

  • Investors should thoroughly research the underlying property, token issuer, and platform before investing. For those that are unable or unwilling to spend the time on this research, we would soon be coming out with simpler, more diversified products.

  1. Can I tokenize my own property? If so, how? For now, the properties that go on our platform have to be approved by our in house experts. You can apply to get your property reviewed by filling the form on our website.

  2. How do dividends, or rental income work with Estate Protocol? Depending on the deal, you would get monthly or quarterly rental dividends deposited directly into the wallet linked to your account. We would make the frequency of dividends extremely clear on the deal information page.

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