Crypto Venture Capitalist Sells $1.6 Million San Francisco Property on Ethereum Blockchain
TechCrunch founder Michael Arrington recently sold a $1.6 million San Francisco home through his early-stage venture capital fund CrunchFund using Propy’s blockchain-based transaction platform.
Propy uses smart contracts on the Ethereum blockchain to facilitate home purchasing globally. It effectively streamlines the real estate transactions process which often involves piles of paperwork verifying records related to income, property, tax liability, assets and ownership.
Blockchain-based real estate transactions can offer buyers and sellers various advantages by instilling trust on both sides of the deal. For example, transactions that are executed and tracked on a blockchain allow all parties involved to verify that a property isn’t being sold to multiple parties at the same time and that it is being sold by the rightful owner. Sellers can trust that escrow funds are in order without a bank and high fees, reducing the risk of wire fraud.
Parties are able to trust remotely using a transparent system that can facilitate real estate offerings to global buyers and sellers.
Propy announced the new CrunchFund sale via a tweet on Monday.
A San Francisco property owned by the VC fund CrunchFund, co-founded by @Arrington, has been sold via Propy’s Transaction Platform for $1.6M.
Read to find out why Arrington and @Compass realtor @RickTeed were excited to use Propy for the transaction: https://t.co/FXW4dwZtbv
— Propy (@PropyInc) June 24, 2019
Natalia Karayaneva, Propy’s CEO, says the deal was in dollars and had a mortgage. She also calls the transaction “a new standard of deeds.”
And here’s the Grant Deed of the @Arrington transaction. Look at the note: “The conveyance has been recorded on the Propy Blockchain Title Registry in smart contract ... on the public Ethereum Blockchain”. It’s a new standard of deeds. pic.twitter.com/Bckmruqi6q— Natalia Karayaneva (@NataliePropy) June 24, 2019
Arrington, who serves as an advisor for Propy, made headlines in late 2017 for completing the world’s first real estate purchase on the Ethereum blockchain. Using Propy tokens, he bought a $60,000 apartment in Kiev, Ukraine.
Propy also lists lavish properties all around the world that allow Bitcoin, Ethereum and XRP, among other cryptocurrencies, as a method of payment.
The TechCrunch founder’s CrunchFund includes a list of initial investors in crypto and tech including Ripple’s CEO Brad Garlinghouse and DST Global’s founder Yuri Milner, according to data compiled by Crunchbase.
Arrington also manages the crypto hedge fund Arrington XRP Capital, one of a few dozen companies utilizing XRP as either a form of payment or to move value from one location to another. The $100-million fund recently merged with ByteSize Capital, a private fund and research house focused exclusively on cryptocurrency.