Trump Organization to crowdfund Maldives resort built with Saudi partner using digital tokens. What investors must know
The development of the first Trump-branded hotel in the Maldives will be “tokenized.”
This means regular investors will be able to buy digital tokens that represent ownership in it before it is built and participate in what the company is calling “a high-growth, premium real estate project.”
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The resort, which is set to open by the end of 2028, will have approximately 80 ultra-luxury beach and overwater villas and be located 25 minutes by speedboat from the capital Malé.
Dar Global, a Saudi luxury real estate developer headquartered in Dubai and listed in London, has partnered with the Trump Organization in this venture.
“This pioneering collaboration not only brings the Trump brand to one of the world's most exclusive destinations but also introduces an unprecedented financial innovation, tokenizing the development of a luxury hospitality project for the first time,” says the press release.
Ziad El Chaar, CEO of Dar Global, says the project will “transform how the world invests in hospitality.”
For some, the ability to jump into a luxury hotel development investment might seem appealing.
But the question remains: Is this a great opportunity or a big mistake for everyday investors?
How would this deal work for investors?
According to The Wall Street Journal, the Trump Organization says investors’ shares will be logged on a digital blockchain, which is a kind of ledger that tracks cryptocurrency transactions (1).
As of now there is no clarity on whether investing in this project grants you a part of the profits once the hotel opens.
It’s unusual for everyday investors to have the option of investing in this type of high-stakes real estate deal, especially before construction is complete. Usually only high-net-worth investors with the right connections could even dream of claiming a stake in this type of project.
Read More: Are you richer than you think? 5 clear signs you’re punching way above the average American
However, the idea of tokenizing real estate investments isn’t unique to this project. The market of tokenized real estate could reach $4 trillion by 2035 from the current size of under $300 billion, according to a Deloitte Center for Financial Services report covered by CoinDesk (2).
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