Tech Startups Look Into Blockchain To Innovate The Future Of Real Estate Through Lofty AI
Welcome to the next phase of the crypto economy, in which ownership of faraway rental properties is divvied up into digital tokens that are sold around the world and the token-holders transform the business of being a landlord into a series of online polls — a system tenants may not even know about.
Lofty AI is one of several tech startups aiming to use blockchain technology to create a new form of investment in real estate. They add to a growing movement built around shared ownership and cooperation, often called distributed autonomous organizations, or DAOs. The idea behind Lofty AI is that by using blockchain, they can make the process of buying and selling homes more efficient and transparent. They are also working on creating a system that would allow users to fractionalize ownership in real estate assets, which could make investing in property much more accessible for everyone.
The company recently raised $5 million in seed funding from Initialized Capital, an early-stage venture fund co-founded by Reddit CEO Steve Huffman, and other investors.
Lofty AI plans to use the funds to build out its product and expand its team. The startup is currently hiring engineering, design, and business development talent. The company’s ultimate goal is to create a platform that allows anyone to tokenize and trade any asset — not just real estate.
“Our vision is to power a new financial system that works for everyone,” Lofty AI co-founder and CEO Alex Ozon said in a statement. “We believe that by making it easy for anyone to tokenize and trade any asset, we can unlock trillions of dollars of value.”
Ozon believes that the Lofty AI platform can help solve some of the world’s most pressing problems, such as climate change, by making it easier for people to invest in sustainable projects.
“By tokenizing assets, we can make it possible for people to invest in things that they care about and that have a positive impact on the world,” he said. “We want to use our platform to help solve some of the world’s most pressing problems, like climate change.”
Lofty AI is not the only company looking to use blockchain technology to change the way we think about investing in real estate. Other startups, such as REIDAO and ShelterDAO, are also working on similar platforms.
It remains to be seen whether or not these types of platforms will catch on with mainstream investors. However, Ozon believes that there is a strong demand for this type of product. “We are seeing a lot of interest from traditional investors who are looking for new ways to invest in real estate,” he said. “Tokenization opens up a whole new world of investment opportunities.”
So far, Lofty AI has raised over $1 million in funding from various investors, including well-known VC firms like Andreessen Horowitz.
It will be interesting to see how Lofty AI and other startups in the space develop over the coming years. It is possible that blockchain could have a major impact on the real estate industry, making it more efficient and accessible for all.