Ethereum (ETH), the second top cryptocurrency by market cap is currently valued at $211.92 and may possibly trade lower. However, there’s a higher chance for ETH’s price to spike by 100x more in a few months from now.

The latter is as a result of BaFIN, Germany financial regulator’s approval of token-based bonds valued at $280 million which can be purchased with Ethereum as an indirect way of investing in Germany’s real estate.

Ethereum has struggled to maintain a foothold on the $200 price level after dwelling in the $100 zone for months. That may no longer be the case given that something very promising has just happened which can add more value to the crypto asset.

What’s the big news? One may wonder. It is Fundament, a Berlin-based blockchain firm’s receipt of approval from BaFIN to issue blockchain-based bonds that are backed by real-estate. In an announcement on July 23, 2019, Fundament revealed that as a result of the regulator’s approval, it will be running a public offering valued at EUR 250 million ($280 million). 

In the same vein, the tokenized real estate bonds will be offered at a nominal value of 1 euro each during the public offering. The tokenized bonds can also be purchased in any amount (minimum of 1 euro) using euro or ethereum as a method of payment.

As a result, crypto fanatics in certain regions who want to invest as little as 50 euros in Germany’s real estate at a variable interest rate can opt to pay with ethereum instead.

Furthermore, the token sale will begin on August 2019 where it will be launched on the Ethereum blockchain. The process will adopt the standard procedure that was notable among Initial Coin Offerings (ICOs) of 2017 and beyond. In addition, the tokenized bond can be withdrawn in the form of a foundation token to a wallet that is compatible with Ethereum’s blockchain, per the release.

Part of the announcement read:

“Each token-based bond with a nominal value of EUR 1.00 (in words: one Euro) is represented by a token foundation in Smart Contract of the Issuer Ethereum network. The transfer of a token-based bond is entirely possible. The partial transfer of rights from the token-based bond is not permitted. “

Reportedly, Fundament’s token will be backed by five construction projects in regions including Hamburg, Frankfurt, and Jena. Commercial and residential properties such as micro-apartments, student apartments, kindergartens, and nursing homes are part of the portfolio which will total 680,000 square feet upon completion.

The post This Real Estate Deal Could Skyrocket the Price of ETH to New highs in the Coming Months appeared first on ZyCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

186 +