How does tokenization impact property valuation?
Tokenization affects property valuation by introducing liquidity and expanding the investor base. Fractional ownership allows more participants to invest, increasing demand and potentially enhancing market value. Transparent blockchain records and automated cash flow distribution make properties more attractive, reducing information asymmetry. Market perception, secondary trading activity, and token liquidity also influence valuation. While the physical property’s fundamentals remain important, digital tokenization adds a new layer of market dynamics, enabling investors to assess value based on both asset performance and token market behavior. Overall, tokenization modernizes valuation approaches by incorporating digital liquidity and accessibility.
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