I hope everyone had a good week and is ready for Thanksgiving. This year, I’m in charge of the stuffing … which is a big responsibility in our house.
Depending on your opinion of web3, you’re going to either LOVE or HATE this week’s letter. If you’re in the latter camp, take a deep breath, and try to keep an open mind.
There was a big headline earlier this month that largely went unnoticed in the commercial real estate world.
Thanks to a Wyoming law that passed earlier this year allowing DAOs (Decentralized Autonomous Organization) aka “crypto companies” to be recognized as an LLC in the state, CityDAO bought 40 acres between Montana and Yellowstone.
This is a massive moment for crypto as the sector has struggled to bridge the gap between the physical and digital world.
Admittedly, I’m underqualified to discuss the web3 movement in detail. However, I’ve shared a few observations below that have me convinced it will be touching the commercial real estate soon.
1) CityDAO bought 40 acres of land on which it plans to develop buildings and establish an autonomous city. There is even a method by which it will grant land to its founding members.
2) There is major adoption of crypto lending and finance platforms (we’re talking hundreds of billions of AUM). Loan rates are starting to become very competitive, and at times, better than what you can get through traditional bank relationships. Example: AAVE.
3) A few new DAOs have accumulated massive amounts of wealth very quickly. For example, Olympus DAO rocketed to over $3 billion in market capitalization in a matter of months.
4) KlimaDAO has created a marketplace for carbon credits where sellers can get “better than market” rates for their credits. This will enable more environmental projects to “pencil” than ever before.
Web3 is coming. As a leader in commercial real estate, it’s worth taking a few hours out of your week to get educated. The adoption of web3 is moving faster than any other technology in human history. Don’t get left behind.
That’s all for this week! Send me a reply if you have any interesting web3 projects I should look into.