Connect with us

Market

How Tokenization Unlocks New Opportunities

Published

on


The rise of real-world asset (RWA) tokenization is reshaping traditional investment markets, unlocking new opportunities in sectors beyond finance. Though tokenization has historically focused on real estate, precious metals, and fine art, the ability to tokenize tangible luxury goods is now emerging as a transformative force in the industry.

BeInCrypto spoke with Harley Foote, CEO and Co-founder of CryptoAutos, a leading project in the RWA luxury car market, to understand what is driving this new phenomenon’s rise and its future prospects.

RWA Market Growth and Future Potential

Real-world asset tokenization has surged as one of the crypto industry’s dominant narratives in the last few years. 

Tokenization leverages blockchain to create digital representations of real-world assets, allowing for fractional ownership. This approach democratizes access to expensive assets by breaking them into more affordable, divisible tokens.

Real estate, commodities, art, financial assets, and precious metals are the most commonly tokenized real-world assets. In 2024, the total market size of tokenized assets reached $186 billion, marking a 32% increase compared to the previous year, according to a report from the Tokenized Asset Coalition.

“The RWA market has exploded in the last year due to a perfect storm of macro trends, technological advancements, and shifting investor sentiment. Institutional interest in blockchain-based assets, ETFs becoming, dare we say, the norm, improved regulatory clarity in key jurisdictions, and the increasing need for liquidity in traditionally illiquid markets have all contributed to this acceleration,” Foote told BeInCrypto.

The industry’s prospects for the future remain promising. According to German consulting firm Roland Berger, the value of tokenized assets is projected to exceed $10.9 trillion by 2030, with real estate, debt, and investment funds leasing as the top three tokenized asset categories.  

The value of tokenized assets will reach at least $10.9 trillion by 2030.
The value of tokenized assets will reach at least $10.9 trillion by 2030. Source: Roland Berger.

With RWA tokenization growing, new asset categories are emerging.

The Rise of Tokenized High-End Goods

The tokenization of luxury goods, such as supercars, yachts, jets, and high-end watches, is becoming a transformative trend that is difficult to ignore. 

“Initially, RWAs were focused on tokenizing financial instruments like bonds, real estate, and commodities, which made sense. However, as the technology has matured and investors have‬‭ had their eyes opened and their tastebuds tickled, we’re seeing an expansion into tangible‬‭ assets with intrinsic scarcity and strong market demand, such as luxury cars, art, and‬‭ collectibles. Supercars, for example, have traditionally been reserved for ultra-high-net-worth individuals, but that is now a thing of the past due to tokenization,” Foote explained.

In 2020, the crypto startup CurioInvest announced the sale of tokens representing fractional ownership of a 2015 limited-edition Ferrari F12 TDF. They offered these tokens, priced at $1 each, for a vehicle valued at over $1 million. The company also announced plans to tokenize 500 luxury cars, which they intended to store in a warehouse in Stuttgart.

In 2023, Cloud Yachts introduced a novel approach to the yachting industry by launching a tokenized experience related to superyachts. 

The NFT company tokenized a 94-foot Sunseeker super yacht, aiming to offer luxury yacht cruises to individuals for a cost comparable to a night out in Miami. It sold each NFT for $500, which granted buyers one cruise around Miami on the Sunseeker 94 for a year.

Tokenized Luxury Vehicles

Earlier this month, CryptoAutos acquired a $20 million luxury car rental fleet in Dubai, featuring limited edition Lamborghini, Ferrari, Porsche, and Rolls Royce models. Customers will have the opportunity to earn USDT through the sale and rental of these vehicles.

According to Foote, luxury goods, particularly supercars, are ideal for tokenization relative to other asset classes.

“‬Unlike niche financial assets, luxury vehicles have universal appeal and recognition plus a liquid global market that attracts a wide variety of buyers. What sets supercars apart from other luxury assets, like fine art or jewellery, is their potential to generate yield through rentals or shared ownership models, transforming what was traditionally a static asset into a dynamic‬ revenue-generating investment. Additionally, supercars often serve as a hedge against inflation.‬‭ Much like fine wine, classic watches; supercars tend to outperform traditional-based investments during economic downturns,” he said.

Asset tokenization carves out a unique path toward greater financial inclusion by breaking down ownership into fractions.

Democratizing Luxury Asset Ownership

Luxury vehicles are called that way because only people with a disposable income in the millions can effectively give themselves the luxury to own one. Tokenization changes that.

“Traditional luxury car investments have been restricted to elite collectors with the capital to buy‬ and maintain rare vehicles. Previously, you needed to pay for the whole vehicle but tokenization‬ democratizes access. These new models can allow investors to own a share of high-value assets with minimal capital, trade their holdings in liquid markets rather than waiting for an entire vehicle resale and generate passive income from rental-based yields,” Foote told BeInCrypto.

Several supercars are limited editions, making them particularly well-suited for tokenization.

“The wider car market certainly is a depreciating asset, once they are mass-produced, they are‬ sold and they rarely retain their value. But these are supercars, limited-production hypercars,‬ and classic models. [They] are particularly well-suited for tokenization due to their inherent scarcity, exclusivity, and strong global brand appeal. Limited production runs‬ coupled with collector demand naturally drives up value appreciation over time,” Foote added.

The growth of luxury goods in the RWA industry attracts attention from investors outside the crypto sector, potentially influencing the broader adoption of RWAs in mainstream finance.

“Luxury RWAs serve as a bridge between traditional investors and blockchain-based finance. We‬ see the current progress towards tokenization of luxury assets, like supercars, yachts, and other‬ items, only accelerating as mainstream adoption of RWAs takes hold,” Foote said.

These assets’ reliance on blockchain technology also inspires greater confidence among investors considering luxury goods as a way to diversify their portfolios.

Blockchain’s Role in Curbing Risks

In high-value asset trading, blockchain technology can help ensure transparency, liquidity, and security

According to Foote, blockchain inherently eliminates many inefficiencies and risks associated with traditional asset ownership by providing transparent ownership at the source. 

“Each tokenized asset is‬‭ recorded on-chain, ensuring a clear ownership history which helps prevent fraud. Unlike‬‭ traditional methods, investors can trade fractional shares of supercars, eliminating the need for lengthy resale processes. And due to the speed of blockchain technology you aren’t waiting for days for banks to clear your money, you can purchase your car with a few clicks,” he said.

Meanwhile, smart contracts further expedite the process and curb risks.

“Smart contracts enforce legal agreements, revenue-sharing models, and governance‬ mechanisms, reducing the need for intermediaries. While transactions are immutable and tamper-proof, enhancing investor confidence,” Foote added. 

Certain jurisdictions are creating regulatory structures to enable confident investor participation in response to the growth of luxury asset tokenization.

Regulatory Frameworks for RWA Tokenization

Different jurisdictions across the globe have implemented regulations for this emerging market, enabling investor access to tokenized RWAs.

“‭Regulatory frameworks vary widely. Dubai, Switzerland, and Singapore have emerged as‬ favorable jurisdictions for asset tokenization, providing clear legal frameworks and investor protections. Meanwhile, the US and EU are still refining their RWA regulations, but we are seeing promising signs, especially within the US under the new leadership,” Foote told BeInCrypto.

In November 2024, the Monetary Authority of Singapore (MAS) introduced new measures to facilitate the commercialization of tokenized assets. These measures included forming commercial networks designed to enhance liquidity in tokenized assets.

MAS also announced plans to develop a market infrastructure ecosystem and established industry frameworks for implementing and settling tokenized assets.

Meanwhile, Switzerland remains a pioneer in the tokenization sector, supported by its comprehensive legal structure for digital assets. The country’s 2021 Swiss DLT Bill facilitated the secure and compliant tokenization of diverse asset types, drawing international participants to its market.

Even before Singapore and Switzerland, Dubai was the first jurisdiction in the world to implement regulatory clarity for tokenized assets. In 2020, it established the Virtual Assets Regulatory Authority (VARA), a regulatory entity that oversees virtual assets. 

This authority focuses on regulating various virtual assets, encompassing tokenized products, cryptocurrencies, and security tokens. Establishing VARA provided regulatory clarity, creating a secure environment for businesses and investors to explore and invest in tokenized assets.

“Dubai is quickly becoming a global hub for tokenized luxury assets due to progressive‬‭ regulations, strong investor demand, and a thriving crypto ecosystem. We’ve seen multiple‬ projects like Mantra, Reelly, and of course, ourselves, make significant commitments to RWA‬ operations in Dubai so far in 2025,” Foote said. 

Yet, before investing in tokenized luxury goods, it’s important to consider their associated risks.

Risks and Future Prospects

Although some countries have established clear regulatory frameworks for virtual assets, most have not. The overall regulatory landscape concerning tokenization is still developing. 

Potential regulation changes could impact tokenized assets, requiring investors to remain informed about the changing legal environment.

Meanwhile, tokenized assets, like other investments, are susceptible to market fluctuations. Although tokenization can improve liquidity, it does not mitigate the inherent volatility in asset markets, particularly real estate and commodities.

“We would never shy away from the risks involved, like in any market. Things like market volatility and general economic conditions can impact demand. As can maintenance costs, especially with classic cars, due to the requirements of careful upkeep. And there is the elephant in the room which is regulatory uncertainty. Evolving laws and regulations around tokenized assets could affect investment structures,” Foote told BeInCrypto. 

Nonetheless, Foote is certain that the demand for tokenized luxury goods is there and will not disappear anytime soon. 

“Investors are increasingly seeking yield-generating luxury assets that offer both utility and appreciation potential. It’s a genuine new frontier that’s opening up right in front of us, and we are taking the opportunity with both hands‬ on that steering wheel and turning the NOS up to the max,” he concluded. 

‭While challenges remain, the appeal of tokenized luxury goods suggests that this is a developing market to watch.

Disclaimer

Following the Trust Project guidelines, this feature article presents opinions and perspectives from industry experts or individuals. BeInCrypto is dedicated to transparent reporting, but the views expressed in this article do not necessarily reflect those of BeInCrypto or its staff. Readers should verify information independently and consult with a professional before making decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



Source link

Market

Don’t Fall for These Common Crypto Scams

Published

on


ZachXBT, a well-known blockchain investigator, recently shared two key “minimum checks” on Telegram to avoid crypto scams.

He emphasized that users must accept full financial responsibility if they take risks in these situations and added that recovering lost funds would be extremely difficult.

Evaluating a Project’s Credibility is Crucial

ZachXBT highlighted two critical scenarios: depositing funds into forked DeFi protocols on newly launched EVM chains and getting scammed by projects with few smart followers on Kaito.

“If you make either of these decisions, it is your own personal choice to risk funds, and I will NOT help you,” ZachXBT stressed.

Many newly launched DeFi protocols on EVM chains are replicas of existing ones. Their teams often do not create original code but instead, fork from established protocols. This process requires minimal technical skills yet introduces significant security risks.

A recent incident highlighted the risks in the DeFi space. The DeFi protocol SIR.trading was reportedly hacked, leading to an estimated loss of $350,000. Despite the project’s documentation promoting it as a “new DeFi protocol for safer leveraged trading,” it acknowledged the risks related to smart contract vulnerabilities.

This case illustrates how new DeFi protocols often become targets for hackers. Additionally, in late March, the DeFi lending protocol Abracadabra suffered a loss of approximately $13 million due to an exploit involving collateralized tokens.

The second situation ZachXBT warned about involves getting “rugged” (falling victim to a rug pull) by projects with few smart followers on Kaito. Kaito is an AI-powered analysis tool that measures real community interest. He advised that checking followers’ numbers and quality is a basic step to avoid falling for projects that use fake engagement or empty marketing hype.

Investor Xero agreed with ZachXBT, stating that Kaito can be a credibility assessment tool.

“Kaito has become an amazing security and reputation tool that I value over others. It can help you identify an impersonator or a new rug project fast. If a 40k+ follower project isn’t connecting with real smart followers, it’s not legit,” Investor Xero commented.

Other Emerging Crypto Scams

In addition to ZachXBT’s warnings, several new scam tactics have recently been flagged.

Investor Jerome warned about a scheme that exploits browsers’ automatic download function to trick users into downloading malicious software.

Another method involves scammers creating and sending small transactions. They would be often as little as 0.001 tokens—using fake wallet addresses that closely resemble legitimate ones. Their goal is to deceive users into copying and pasting the fraudulent address when making future transactions.

Additionally, Microsoft has identified StilachiRAT, a new remote access trojan specifically designed to target cryptocurrency wallets and login credentials.

According to a Chainalysis report, from 2021 to 2024, decentralized finance (DeFi) platforms have been the primary targets of crypto hacks.

Amount of Funds Stolen by Victim Platform Type. Source: Chainalysis
Amount of Funds Stolen by Victim Platform Type. Source: Chainalysis

The report explains that DeFi platforms may be more vulnerable because developers prioritize rapid growth and launch over security measures. This lack of security focus makes them prime targets for hackers.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



Source link

Continue Reading

Market

This Is How Dogecoin Price Reacted To Elon Musk’s Comment

Published

on


Dogecoin has faced a series of setbacks recently, including a failed breakout attempt that led to a decline in its price. This downward movement was further exacerbated by a recent comment from Elon Musk, which cast doubt on Dogecoin’s future. 

However, despite these challenges, the altcoin is showing some signs of recovery, largely driven by long-term holders (LTHs) who accumulate more DOGE at current low prices.

Dogecoin Is Facing Mixed Signals

Dogecoin’s Network Value to Transaction (NVT) ratio has spiked significantly, reaching a three-month high. This suggests that the network’s value does not match the number of transactions, pointing to a possible lack of investor confidence. 

Elon Musk’s recent comment regarding DOGE further fueled the discourse surrounding the cryptocurrency. He clarified that the US government does not intend to use Dogecoin in any form, which led to some negative sentiment. This statement dampened expectations for the coin, although it hasn’t completely derailed its market standing.

Dogecoin NVT Signal.
Dogecoin NVT Signal. Source: Glassnode

The macro momentum of Dogecoin shows signs of stabilizing, as evidenced by the recent spike in the HODLer Net Position Change. LTHs have been actively accumulating DOGE during the recent dip, which indicates strong conviction among these holders.

This accumulation provides a level of support, potentially helping the coin recover and preventing further price declines. The increased position change suggests that LTHs are confident in the long-term viability of Dogecoin despite recent market turbulence and Musk’s controversial comment.

This continued accumulation by LTHs could lead to a floor forming under Dogecoin’s price, providing a buffer against further bearish pressures. As the market stabilizes and sentiment shifts, these holders could become a driving force that will trigger the next upward movement.

Dogecoin HODLer Net Position Change
Dogecoin HODLer Net Position Change. Source: Glassnode

DOGE Price Stumbles, But Can It Recover?

Dogecoin is currently trading at $0.163, with the price just below the support level of $0.164. Over the last five days, the coin has experienced a 16% decline following a failed attempt to break through the $0.198 resistance level. This failure to breach key resistance levels indicates that DOGE may not experience immediate price gains without external catalysts.

Given the current market conditions, it’s likely that Dogecoin will not experience significant declines in the near future. The coin may reclaim $0.164 as support and continue consolidating just below the $0.198 resistance. However, this consolidation could persist until stronger market cues emerge to push the price higher.

Dogecoin Price Analysis.
Dogecoin Price Analysis. Source: TradingView

The only scenario in which this bullish-neutral outlook would be invalidated is if Musk’s comment causes further damage to DOGE’s price. In that case, the meme coin could dip to $0.147, extending its recent losses. A sustained downturn would signal more negative sentiment in the market and potentially halt Dogecoin’s recovery.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



Source link

Continue Reading

Market

Bitcoin Price Nears $80,000; Fuels Death Cross Potential

Published

on


Bitcoin’s recent price action has shown some concerning signs. The crypto king has failed to break through key resistance levels, leaving it vulnerable to further declines. 

As Bitcoin inches closer to testing the $80,000 support level, the potential for a Death Cross looms, increasing bearish sentiment in the market.

Bitcoin Investors Are Skeptical

Short-Term Holders (STHs), who buy at higher prices, are primarily responsible for the ongoing losses. These investors have been actively noting losses in response to Bitcoin’s volatile market conditions, reflecting the unpredictable environment that has made it difficult for new investors to navigate.

Meanwhile, Long-Term Holders (LTHs) continue to realize profits, benefiting from their extended market presence. However, the current market conditions show stagnation in new capital inflows, with LTH profits offset by STH losses. This creates weaker demand and resistance, signaling a potential slowdown in price momentum.

Maintaining bullishness in the market typically requires consistent capital inflows, but the market now seems to be lacking that crucial support. The overall sentiment reflects a neutral stance, with both profit-taking and loss-realization balancing out.

Bitcoin Realized Profit/Loss
Bitcoin Realized Profit/Loss. Source: Glassnode

The crypto king’s macro momentum is showing additional signs of bearish pressure, particularly with the Exponential Moving Averages (EMAs). The 200-day EMA is less than 3% away from crossing the 50-day EMA, which would result in a Death Cross. This technical pattern has historically signaled significant corrections in price, marking a potential end to Bitcoin’s 18-month-long Golden Cross.

As the EMAs approach this critical point, traders and investors are closely watching for any signs of a correction. The fear of a Death Cross brings further concern to Bitcoin’s price stability. If the 50-day EMA crosses below the 200-day EMA, it could trigger more sell-offs, intensifying the bearish sentiment in the market.

Bitcoin Death Cross Nears
Bitcoin Death Cross Nears. Source: TradingView

Is BTC Price Primed For Further Decline?

Bitcoin is currently trading at $82,248, nearing the key psychological support level of $80,000. Despite attempts at a breakout, Bitcoin has failed to move beyond the two-month-long broadening descending wedge pattern. This pattern suggests that Bitcoin could be on the brink of further decline.

If the downward momentum persists, Bitcoin is likely to fall through the $80,000 support level and approach $76,741. This scenario would reinforce the bearish outlook, especially considering the technical indicators and the lack of strong buying support. A breakdown below these levels could signal a deeper correction, with the potential for further declines.

Bitcoin Price Analysis.
Bitcoin Price Analysis. Source: TradingView

However, this short-term bearish thesis can be invalidated if Bitcoin’s price manages to reclaim $82,761 as support. If Bitcoin breaks through the $85,000 barrier, it could break out of the current pattern, signaling a potential reversal. A strong rally above $86,822 would suggest a resumption of the bullish trend, invalidating the bearish momentum that currently dominates the market.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



Source link

Continue Reading

Trending

Copyright © 2024 coin2049.io