Binaryx is reshaping the world of real estate investing

By enabling anyone to invest in luxury properties with as little as $50. Through innovative blockchain technology

Binaryx, a groundbreaking real estate tokenization platform, is revolutionizing the way people invest by enabling anyone to purchase fractional ownership in premium properties for as little as $50. This initiative is making high-yield real estate investments, which were previously accessible only to wealthy institutional investors, available to a global audience.

"Today, only $250 million of real estate is verifiably tokenized on public blockchains- a tiny portion of the vast $650 trillion real estate market. At Binaryx, we estimate this figure could grow to $6 trillion within five years, and we are actively contributing to making that happen. Once investors get used to tokenization, property tokens will be in every investor's portfolio and functioning as collateral instruments, just like traditional real estate," said Oleg Kurchenko, CEO of Binaryx.

Initially focusing on one of the highest-value and hardest-to-reach real estate segments- vacation properties- the Binaryx team has completed the tokenization of 17 premium properties in Bali, offering potential net returns of 10-30% APR on each unit. Commencing operations in the second half of 2024, the platform has since expanded to include properties in Montenegro and Turkey.

Why Is Traditional Real Estate Investing Broken?

Real estate is the largest asset class in the world, yet it remains largely out of reach for most people because it's structured to favor the wealthy.

Large capital owners enjoy:

* Scale advantage: Institutional investors not only diversify better but also obtain discounts on bulk purchases, maintenance, and property management- paying roughly $6.52/m² less than individual buyers.

* Financial leverage: Large investors use advanced analytics to obtain 5-10% greater rents and occupancy while accessing specialist borrowing at 1-2% better rates.

* Market influence: Major players like Blackstone, which controls over 300,000 homes in the U.S., can manipulate local markets to pump or dump prices.

As a result, the largest asset class remains the most fragmented and inaccessible. At the same time, its enormous potential for wealth creation is largely reserved for those with significant capital or specialized knowledge.

Binaryx seeks to remove these obstacles and open institutional-grade real estate returns to anyone.

How Does Tokenization Work?

Tokenization is a relatively new phenomenon that most investors have not even heard of. Many of those who have heard of it associate it with the cryptocurrency market's volatility. Tokenization of real estate refers to splitting the ownership and income rights of the property into fractions, which are stored on the blockchain in the form of tokens that can be traded.

To tokenize a property:

1. The asset is assigned to a legal entity (typically an LLC).

2. The legal entity is split into ownership fractions.

3. These fractions are converted into tokens.

On the Binaryx platform, each token can be purchased for as little as $50 and represents a fractional share of a property. Every token transaction is recorded on the blockchain, an immutable public ledger, and smart contracts automate the token exchange process, cutting out a bunch of middlemen.

Solving the Liquidity Problem

Tokenization solves real estate's illiquid nature by splitting it into standardized, easily transferable ownership units. Unlike traditional real estate, which can take months to sell, tokens can be sold on secondary markets in minutes or seconds, much like trading stocks on an exchange.

Binaryx supports two types of tokenized properties:

1. Ready-to-Rent Properties: Investors immediately start receiving rental income distributed automatically via smart contracts.

2. Off-Plan Properties: Profits come from selling the whole unit once construction is finished, and these profits are distributed proportionally between token holders.

Legal Protection of Token Holders

When buying a property token on the Binaryx Platform, an investor becomes a legal partner in a Decentralized Autonomous Organization with Limited Liability (DAO LLC) registered in Wyoming, USA. Wyoming law W.S. SF0038, enacted in 2021, has created a specific legal structure that ties the token holder to the property.

This structure ensures:

* Complete legal ownership of the property via a DAO LLC

* Ownership rights remain legally protected even Binaryx ceases operations

* Regular automatic rental payments via smart contracts

* Investor governance through token-based voting

The DAO mechanism grants token holders management rights in proportion to their ownership stake. Through token-based voting, investors can participate in making key decisions such as:

* Changing a management company

* Approving repairs and improvements

* Determining rental strategy

* Making decisions about property sales

If a majority of token holders vote in favor of the change, DAO LLC's authorized representatives must carry out the decision.

Case Study: Villa in Bali Tokenized on Binaryx

Does it sound complicated, messy, and confusing? It's completely normal, so the Binaryx