Recall that the idea of splitting something big and expensive into many small parts is not new. For example, we came across something like this in August 2021. Back then, representatives of the Otis trading platform promoted so-called fractional NFTs using unique tokens from the Cryptopunks line.

The bottom line was that users of the platform could buy a small fraction of a world-famous NFT token if they didn’t have the funds to buy the whole token. Read more about the implementation of such a thing in a separate article.

How do houses sell in parts?

The One occupies 3.5 acres of land, it has a 50-car garage, a 10,000-bottle wine cellar, a guest house and great views of Los Angeles to boot. Construction and design on the property was put on hold after its original owner declared bankruptcy and got into debt to the tune of more than $165 million.

Here’s a video about the project, which gives a glimpse of its components.

The One was previously expected to rise in value on the market to $500 million, making the estate almost the most expensive property in the world. Unfortunately, there is still no buyer for such a luxury, so Nayami wants to save it from auction in favour of token sales. Here’s how it works from his words, published by Decrypt.

Once the tokens are released and added to exchanges, their real value will be underpinned by the value of real estate. Moreover, it is unprecedented for a cryptocurrency to be based on the world’s most expensive piece of real estate.

That is, the project's spokesperson is emphasising the fact that in this case, the coins will be backed by a certain piece of real estate. And this could prove to be an attractive point for investors, who in this case will invest not only in the technology, but also in the actual mansion.

The One Estate

What will be the benefit for token buyers in this case? Nayami is going to use the proceeds to set up a lease for the mansion. The rental income and will be distributed to the token holders, to whom the designer promises “billions of dollars in profits”.

Unlike the Mona Lisa, with The One you can do whatever you want – organize weddings, create businesses, present new products and so on.


Note that the mass application of this scenario is hard to believe, because it is unlikely to use parts of the house without a contract. That means they would probably have to be present in person in Los Angeles, as they would not be able to do it remotely. Still, in the case of damage to the house by the renting party, the damage would probably be more expensive than the token itself.


Niall Nyami

In the example of the famous painting, Naimi alludes to the tokenisation of art objects, which has become popular with the NFT trend. However, his idea looks much riskier – there is no guarantee that even after selling the tokens, The One’s owner will be able to attract attention to the property and make money from it. Maintaining such a huge property requires a lot of monthly expenses and these are unlikely to be more than covered by organising events alone.

And in general, saving the house from an auction seems relevant except for Niall. At the same time, investors may not be interested in the process, because given the behaviour of the mansion’s previous owner, the latter did not have the best reputation.


We think the idea of tokenisation of the house seems attractive in theory, but in practice it is unlikely to work out. At the very least there may not be enough buyers for the tokens, or not everyone will be able to cope with the entertainment at a distance - which is likely to be simply forbidden. Finally, we must not forget about the U.S. Securities and Exchange Commission, whose representatives are likely to consider tokens tied to rental income signs of securities. Well, that could have serious consequences for their buyers.


What do you think about it? Share your opinion in our Millionaire Crypto Chat. There, we’ll discuss other important news that pertains to the decentralised asset industry.