The luxury cryptocurrency community that AGIA International Ltd. intends to build at Rokers Point Estates, Exuma will carry out the sale of property and the construction agreements for houses in the traditional way, but the way to begin that ownership journey starts with a non-fungible token (NFT) and $10,000, one of the company’s principals Erik Sanderson explained to Guardian Business yesterday.
He said there could be some hesitation about the non-traditional use of NFTs to enter the buyer pool, given everything that has happened with cryptocurrency exchange FTX in this country over the past several days, but he assured that AGIA has been heavily vetted.
Sanderson explained that money will be converted to fiat currency and held in escrow, so that value-added tax (VAT) and contractors can be paid in dollars.
According to Sanderson, once US$10,000 is minted into an NFT using the Ethereum token, a buyer is eligible to begin the process of purchasing property in the community.
He explained that the buyer then goes through a three-tiered vetting process and a closing date is set.
If everything checks out, there will be a traditional purchase agreement executed, a traditional construction contract executed, and the value of the land broken out.
“The only thing we receive is the value of the land. The other money goes into escrow and as construction commences there is a traditional draw towards that asset,” said Sanderson.
“Once you’ve paid your VAT to the government, then we release the title. It’s kind of traditional in every sense of the word except for the first part. That first NFT transaction allows you access to purchase this property the traditional way, the legacy way.”
Sanderson explained that instead of having a loan at a bank, a successful crypto trader who has made a lot of money can convert all of the crypto, put the money in escrow, and use it to buy “a real piece of property that is going to appreciate in The Bahamas”.
He said it allows good buyers who will be good stewards of The Bahamas to use their new assets to invest in The Bahamas.
Sanderson said he is only interested in seeing continued progress for the people of Exuma.
The property is to include 60 ultra-luxurious pavilions and villas.
Sanderson said the concept could be carried over to many more developments in The Bahamas.
