Nick Chong · 4 hours ago · 2 min read
The former headquarters of CrunchFund, a venture capital firm founded by Michael Arrington, was sold via Propy, a blockchain-powered real estate platform. The San Francisco-condo was sold for $1.6 million and is a testimony to blockchain’s growing popularity in real estate.
Founder of TechCrunch closes sale on former CrunchFund HQ via blockchain
Blockchain’s potential in the real estate industry has grown considerably throughout the years but has almost always been limited to high-profile, multi-million dollar mansions or commercial properties such as hotels.
The sale of a condo that served as a headquarters to venture capital firm CrunchFund managed to slip through the media radar but nonetheless marks a very important step in real estate. According to the company’s founder, Michael Arrington, the San Francisco apartment was recently sold for $1.6 million via Propy.
The blockchain-powered transaction platform received nothing but praise from Arrington, who is also the founder of online media outlet TechCrunch. In a May 23 tweet, he said that Propy’s platform was a “stellar product” that has become increasingly popular in the real estate industry.
We completed the sale of the old CrunchFund condo in San Francisco a couple of weeks ago. It sold for $1.6m and we used the @PropyInc blockchain powered transaction platform. Absolutely stellar product that is getting tons of attention from real estate professionals.
— Michael Arrington (@arrington) May 23, 2019
The reactions from Arrington’s followers matched his own excitement—many Twitter users saw this as an opportunity to celebrate the use of blockchain technology in real-life transactions.
Even Changpeng Zhao, the CEO and founder of Binance, congratulated Arrington on the successful blockchain transaction.
— CZ Binance (@cz_binance) May 23, 2019
Propy aims to revolutionize real estate sales
Propy was created with the intent to simplify international real estate transactions by digitizing key processes, such as contractual and ownership formalities. The company describes itself as a “global property store with decentralized title registry” that wants to opens up cross-border investment opportunities to everyone.
The company’s Ethereum-based platform allows users across the globe to see the properties it has listed for sale. Anybody can make real estate purchases through Propy’s platform via smart contract, as well as pay and receive registration of ownership much faster than traditional transactions.
In July of last year, Rick Hilton, the chairman of Hilton Hotels, listed his $38 million Roman mansion on Propy. The company’s ability to instantly issue title deeds online has made it attractive to the luxury real estate market across the world. Propy currently operates in global real-estate hotspots such as San Francisco, London, Beijing, and Dubai.
While the sale of CrunchFund’s former HQ doesn’t even compare to the price of luxury properties on Propy’s platform, it marks an important step both for the company and the entire industry. With the median home value in San Francisco currently around $1.3 million, blockchain-based real estate sales has become even more available to average homeowners.