Recently, the Singapore High Court ruled that non-fungible tokens (NFTs) can be considered property. The decision was made on the basis that NFTs fulfilled certain legal requirements, like being unique from one another, as well as possessing the ability to have their owner(s) recognized as such by third parties. In this blog post, we discuss Singapore’s NFT and the case for NFTs possibly being the newest form of property!
What are NFTs?
You may have seen the term “NFT” discussed in the last 2 years, but what are they, and why are they gaining popularity?
NFTs, or non-fungible tokens, are digital assets that are stored on a blockchain. They can represent many things like masterpiece artworks, simple images, popular songs, viral videos, in-game characters & weapons, or even tweets – you name it!
NFTs as Property?
NFTs have the potential to revolutionize the way we think about ownership. For one thing, they’re not bound by geographical boundaries like traditional property is. That means you could own an NFT that’s located in another country! And because they can’t be replicated, you never have to worry about someone trying to steal your property or copy it without your permission.
Unlike traditional forms of property, NFTs are not interchangeable; each one is unique and cannot be replaced by another. This makes them ideal for collectibles, art, and other items that are valuable because of their rarity. Additionally, anyone can see who owns an NFT and when it was bought or sold.
The Story Behind Singapore’s NFT High Court’s Decision
In August 2021, a Singaporean national, named Janesh, bought a Bored Ape Yacht Club NFT, with the intention of keeping it. However, due to the NFT’s uniqueness and monetary value, he decided to use the NFT as ‘collateral’ to borrow cryptocurrencies.
The NFT holder had entered into a loan agreement with a person who goes by the name of chefpierre. Janesh had asked for an extension of time to repay the loan. The two parties discussed and agreed on the terms of another loan as well as having the original loan refinanced.
However, chefpierre, later on, asked to have the loan payment fulfilled in under a 7-hour window or ‘foreclosure’ will occur. Consequently, the NFT was seized.
NFTs in Real Estate
Recently, a house was sold as an NFT for the first time in history.
The 3-bedroom abode is located in Columbia, South Carolina, and was sold for $175,000 in what many believe to be the first of thousands of future home NFTs. The agency of the home created an NFT that represented the ownership of the home. Thus, whoever purchased the NFT was entitled to the ownership of the physical property itself.
NFT-based assets are faster, easier to obtain, and sell than the traditional route, which often requires buyers to wait several days or weeks for a transaction to be processed. With NFTs, future homeowners can receive their property instantly.
The Future of Property
NFTs being considered as property paves the way for a new method of ownership. One that is safe, reliable, and convenient. It’s no wonder that many believe that NFTs is the future of ownership. Though only time will tell what impact NFTs will have on the world of property, but one thing is certain: the possibilities are endless.
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