Binaryx is reshaping the world of real estate investing by enabling anyone to invest in luxury properties with as little as $50. Through innovative blockchain technology, Binaryx provides small investors the opportunity to access premium real estate in sought-after locations like Bali, Montenegro, and Turkey, offering potential returns of 10-30% APR. This groundbreaking platform is democratizing real estate investment, making high-yield properties more accessible to a global audience.
Quote from Binaryx CEO, Oleg Kurchenko
“Today, only $250 million of real estate is verifiably tokenized on public blockchains—a tiny fraction of the vast $650 trillion real estate market. At Binaryx, we estimate this figure could grow to $6 trillion within five years, and we are actively contributing to making that happen. Once investors get used to tokenization, property tokens will be in every investor’s portfolio and functioning as collateral instruments, just like traditional real estate.”
Initially, tokenization will affect one of the highest-value and hardest-to-reach real estate segments—vacation properties—as it’s highly financially feasible. The Binaryx team has strategically focused on Bali, successfully tokenizing 17 premium properties on the island and delivering impressive returns of 10-30% APR on each unit. Following this success, Binaryx expanded into Montenegro and Turkey during the second half of 2024.
Why Is Traditional Real Estate Investing Broken?
Real estate is the largest asset class in the world, yet it remains out of reach for most people because it is structured to favor the wealthy.
Large capital owners enjoy:
-
Scale advantage: Institutional investors not only diversify better but also obtain discounts on bulk purchases, maintenance, and property management—paying roughly $6.52/m² less than individual buyers.
-
Financial leverage: Large investors use advanced analytics to obtain 5-10% greater rents and occupancy while accessing specialist borrowing at 1-2% better rates.
-
Market influence: Major players like Blackstone, which controls over 300,000 homes in the U.S., can manipulate local markets to pump or dump prices.
As a result, the largest asset class remains the most fragmented and inaccessible. At the same time, its enormous potential for wealth creation is largely reserved for those with significant capital or specialized knowledge.
Binaryx seeks to remove these obstacles and open institutional-grade real estate returns to anyone.
How Does Tokenization Work?
Tokenization is a relatively new phenomenon that most investors have not even heard of. Many of those who have heard of it associate it with the cryptocurrency market’s volatility. Tokenization of real estate refers to splitting the ownership and income rights of the property into fractions, which are stored on the blockchain in the form of tokens that can be traded.
To tokenize a property:
-
The asset is assigned to a legal entity (typically an LLC).
-
The legal entity is split into ownership fractions.
-
These fractions are converted into tokens.
On the Binaryx platform, each token represents a fractional share of a property and can be purchased for as little as $50. Every token transaction is recorded on the blockchain, an immutable public ledger, and smart contracts automate the token exchange process, cutting out a bunch of middlemen.
Solving the Liquidity Problem
Tokenization solves real estate’s illiquid nature by splitting it into standardized, easily transferable ownership units. Unlike traditional real estate, which can take months to sell, tokens can be sold on secondary markets in minutes or seconds, much like trading stocks on an exchange.
Binaryx supports two types of tokenized properties:
-
Ready-to-Rent Properties: Investors immediately start receiving rental income distributed automatically via smart contracts.
-
Off-Plan Properties: Profits come from selling the whole unit once construction is finished, and these profits are distributed proportionally between token holders.
Legal Protection of Token Holders
When buying a property token on the Binaryx Platform, an investor becomes a legal partner in a Decentralized Autonomous Organization with Limited Liability (DAO LLC) registered in Wyoming, USA. Wyoming law W.S. SF0038, enacted in 2021, has created a specific legal structure that ties the token holder to the property.
This structure ensures:
-
Complete legal ownership of the property via a DAO LLC
-
Ownership rights remain legally protected even Binaryx ceases operations
-
Regular automatic rental payments via smart contracts
-
Investor governance through token-based voting
The DAO mechanism grants token holders management rights in proportion to their ownership stake. Through token-based voting, investors can participate in key decisions such as:
-
Changing a management company
-
Approving repairs and improvements
-
Determining rental strategy
-
Making decisions about property sales
If a majority of token holders vote in favor of the change, DAO LLC’s authorized representatives must execute the decision.
Case Study: Villa in Bali Tokenized on Binaryx
Complicated, messy, and confusing? That’s normal, so the Binaryx team shared step-by-step instructions on how exactly they tokenized one of the latest properties on the platform, the Tropical Loft villa, which is located in Bali’s Changgu area.
-
Property selection: After thorough market research and due diligence, the Binaryx team selects Tropical Loft for several reasons: quality of construction, design, location, projected returns, etc.
-
Investment calculations: The Binaryx team establishes the total investment value of the villa at $225,750, which includes the price of the property itself and all associated costs. The market analysis showed that the villa can generate about 11.65% annual rental yield. After deducting all management and maintenance costs, the projected monthly income for distribution to investors was $2,191.74.
-
Legal structure: The Binaryx team registers a specific TROPICAL LOFT VILLA 2 DAO LLC in Wyoming, which will hold ownership rights to Tropical Loft Villa.
-
Tokenization: The DAO LLC that owns Tropical Loft Villa is split into 4,515 tokens, each priced at $50. These tokens were created on the Polygon blockchain and, by Wyoming state law, grant their holder the co-ownership of TROPICAL LOFT VILLA 2 DAO LLC.
-
Fundraising: Investors could purchase any number of tokens. For example, an investment of $1,000 results in 20 tokens, representing approximately 0.44% ownership of the property and its revenues. All funds collected are returned to investors if the necessary amount is not raised.
-
Income distribution: When the villa starts generating rental income, the token’s smart contract will automatically begin distributing payments to the token holders’ wallets. An investor with 20 tokens will receive about $9.71 in monthly passive income (0.44% of the entire property’s income).
-
Investment exit: Any investor can sell tokens on the secondary P2P market or wait until Tropical Loft token holders vote in favor of selling the entire property.
How to Start Investing?
Anyone can start investing in tokenized real estate on Binaryx with just $50. Here’s how:
-
Create an account on the Binaryx Platform
-
Complete the KYC verification process
-
Explore available properties across Bali and Montenegro
-
Purchase tokens in any property (minimum investment: $50)
-
Receive monthly rental income distributions or wait until construction completion
-
Sell tokens anytime on the secondary market
About Binaryx
Founded in 2023, Binaryx is a real estate tokenization platform that democratizes access to luxury property investments by enabling fractional ownership with an entry point as low as $50. Operating under Wyoming’s 2021 legislation (W.S. SF0038), Binaryx legally issues property tokens that represent actual ownership stakes on the Polygon blockchain. The platform currently features a curated portfolio of high-yield rental properties and off-plan developments in Bali and Montenegro, with strategic expansions planned for Dubai and Spain soon.
This press release was originally published on this site
