The process of tokenizing physical assets such as real estate inherently involves a level of disclosure to ensure trust and verify the authenticity of the asset being tokenized. However, property owners might have legitimate concerns about providing certain information for due diligence.
Let’s explore these concerns and ways Creatiq Capital addresses them:
Common Concerns Property Owners Might Have:
- Privacy: Sharing detailed information about one’s property, especially financials, can be a matter of privacy. Owners might not want this information to be publicly available or misused.
- Data Security: With the increasing number of data breaches worldwide, property owners might be concerned about the safety of their sensitive information if it’s stored digitally.
- Misuse of Information: There’s always a concern that the provided information might be used for other purposes, like aggressive marketing, selling to third parties, or other unintended uses.
- Legal Implications: Depending on the jurisdiction, disclosing certain pieces of information might have legal implications. This is especially true if there are disputes or undisclosed issues related to the property.
- Property Value Impact: Owners might fear that revealing certain negative aspects about the property (e.g., liens, disputes) might devalue the property or impact the tokenization value.
Ways to Address These Concerns:
- Transparency: Creatiq Capital is transparent about why each piece of information is required and how it will be used.
- Data Encryption & Protection: Creatiq Capital ensures all data, especially sensitive information, is encrypted and stored securely. We utilize best-in-class cybersecurity measures and frequently audit for vulnerabilities.
- Clear Data Use Policy: Creatiq Capital has a clear policy stating that the owner’s data will not be sold, shared, or used for any purpose other than the tokenization process, which can be read below.
- Anonymous or Pseudonymous Tokenization: Depending on the platform’s design and regulatory requirements, Creatiq Capital allows property owners to tokenize assets using pseudonyms or without revealing their real identities to the public. This may provide an added layer of privacy should the owner choose to remain private.
- Legal Consultation: Before starting the tokenization process, it’s advisable for property owners to consult with legal experts who are sophisticated in decentralized blockchain technology, as well as Private vs Public jurisdictions of Common Law. This will ensure they’re aware of any legal implications of the information they share. Creatiq Capital can also provide a list of legal consultants familiar with tokenization.
- Limit Access: Creatiq Capital ensures that only necessary personnel can access client data. Others work with anonymized or redacted versions as required.
In conclusion, while property owners should be cautious and informed, a transparent, secure, and legally compliant tokenization platform such as Creatiq Capital can mitigate most of these concerns. At Creatiq Capital, we believe itis essential to recognize these potential risks and address them proactively to facilitate a successful tokenization process.