Is USP An NFT?

Spoiler: USP is not an NFT, but a security token. Let us define each category of tokens and see how they differ to understand the main aspects of USP.

USP is a blockchain-based token that gives investors exposure to an income-producing real estate portfolio. Non-fungible tokens (NFTs), also powered by blockchain, can be used to tokenize real-world assets, including real estate. Considering this, one might ask whether USP is an NFT. Spoiler: USP is not an NFT, but a security token. Let us define each category of tokens and see how they differ to understand the main aspects of USP.

What Is an NFT?

NFTs are blockchain-based tokens with unique identifiers, enabling them to represent something scarce and irreplaceable. In the case of regular digital currencies, such as Bitcoin or Ethereum, one unit doesn’t differ from another in terms of value as they are fungible, like fiat money.

NFT’s capability of featuring a unique identifier on the blockchain opens the door to many use cases, from collectibles to online games and digital art. NFT holders have ownership rights over the asset related to the token, whether it is digital or physical.

The underlying blockchain ensures that NFTs are indivisible, immutable, indestructible, and verifiable. Today, most NFT projects leverage the Ethereum network, although other blockchains also gain traction, such as Solana and Algorand. While NFTs share the same blockchain network that hosts fungible tokens, they have their own token standard to ensure that each NFT has a unique identification code and metadata.

On Ethereum, the most popular NFT standard is ERC-721.

NFTs can represent anything from digital and physical artworks to luxury goods, in-game items, music tracks, and even real-estate assets. They have quickly grown into an independent sector within the crypto industry. The crypto community was first introduced to NFTs in 2017 thanks to the blockchain-based collectible game CryptoKitties, but the tokens gained recognition as a new digital asset class in 2020.

The value of an NFT is derived from the asset it represents. For example, in March 2021, digital artist Mike Winkelmann, also known as Beeple, sold an NFT representing his artwork called “everydays: the first 5000 days” for a staggering $69 million.

What is a Security Token?

Unlike NFTs, security tokens, also known as digital securities, are fungible tokens backed by real-world assets. Specifically, security tokens represent traditional securities, which are financial instruments that hold value and can be traded on primary and secondary markets. Some examples of securities are company stocks, corporate or government bonds, as well as certain types of real estate assets.

Securities are used by businesses and other entities to raise capital. They are highly regulated in most jurisdictions. In the US, the main body supervising the issuance and trading of securities is the Securities and Exchange Commission (SEC).

From a legal perspective, digital securities don’t differ from regular securities, which means they must be registered with the SEC and take into account the Securities Act of 1933. What makes security tokens distinct from traditional securities is the blockchain technology that powers them.

Technically, security tokens share similarities with cryptocurrencies like Ethereum, benefiting from blockchain features like decentralization, transparency, immutability, and security, among others.

The most popular security tokens are equity tokens, with tokenized shares accounting for the largest chunk of the security token market. Companies looking to raise capital through digital securities hold Security Token Offerings (STO), which are a fundraising mechanism that shares similarities with traditional Initial Public Offerings (IPOs) as well as Initial Coin Offerings (ICOs).

Unlike ICOs, STOs are regulated, although there are fewer requirements compared to IPOs. This makes STOs way more secure than ICOs and more cost-effective than IPOs.

Besides equity tokens, another significant group of digital tokens refers to asset-backed tokens, which provide ownership rights over real-world assets like real estate, art, and commodities. One of the main benefits of asset-backed tokens relates to liquidity, which can be greatly improved thanks to the fractional ownership feature.

 

Why Are Security Tokens Ideal for Tokenizing Real Estate?

Real estate is an essential part of the global economy and a large contributor to personal wealth. By tokenizing real estate assets with blockchain technology, investors can realize more liquidity while vendors have the potential to gain greater returns on investments – making it beneficial for all involved.

Both NFTs and security tokens can be used to tokenize real-estate assets; however, the latter is more suitable for two main reasons…

To begin with, security tokens offer investors the advantage of being government-regulated, thus providing a greater level of trust and security for their investments.

Secondly, NFTs are only partially able to address the liquidity issue for real estate investors across the globe. Security tokens, on the other hand, provide an innovative, borderless framework for tackling the liquidity issues of real estate investment opportunities. By offering fractional ownership possibilities through asset-backed security tokens, global investors are now able to access this often exclusive market with ease.

USP Is a Regulated Asset-Backed Token

USP is a security token representing the fractional ownership of a diversified, income-producing real estate portfolio focused on US properties, such as commercial properties, multifamily housing complexes, healthcare facilities, and hospitality properties. USP is an asset-backed token regulated in the United States, offering transparency, liquidity, and fractional ownership safely and securely.

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Necessary Disclosures
Informational Purposes for Discussion Only

This general analysis is for general informational purposes only and does not constitute a prospectus, an offer document, an offer of securities, a solicitation for investment, or any offer to sell any product, item, or asset (whether digital or otherwise). The information set out in this general analysis is for community discussion only and is not legally binding.

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You acknowledge that: (1) the information contained in this general analysis is subject to change without notice, and no one shall assume from the lack of any updates to this general analysis that the contents of this general analysis have not changed since the date of this general analysis; (2) this general analysis could become outdated due to changing circumstances; and (3) USP or any of its Representatives does not hereby obligate itself in any manner to periodically or otherwise to update the information in this general analysis or to maintain the availability of any information in this general analysis.

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Nothing in this general analysis constitutes business, finance, legal, or tax advice. You agree to consult professional advisers before engaging in any activity related to the information provided in this general analysis.

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This general analysis does not constitute an offer of securities, a prospectus, an offer document, or solicitation for an investment of any kind. Information contained in this general analysis is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

You acknowledge that: (1) this general analysis and the information shown herein is not an offering of any securities nor a solicitation of an offer to buy any securities and (2) this general analysis and the information herein shall not be construed as any description of the business of USP or any of its Representatives in conjunction with any offering of securities.

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This general analysis does not constitute or imply a contract or an offer to enter into a contract. This general analysis is provided solely for informational purposes only and does not constitute any binding commitment by USP or any of its Representatives. No person is bound to enter into any contract or binding legal commitment in relation to anything in this general analysis.

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Any historical information or information based on past performance included herein is for informational purposes only and has inherent limitations and is not intended to be a representation, warranty, or guarantee of future performance. Projected performance data shown constitutes “forward-looking information” which is based on numerous assumptions and is speculative in nature. Actual results may vary significantly from the values and rates of return projected herein.

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USP x Republic.com Coming Soon!

The USP real estate security token has been approved to list on Republic.com, America’s leading online crowdfunding platform. This pivotal move grants U.S. real estate investors unparalleled access to the emerging world of asset tokenization via USP.

USP to list on Republic.com

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We are committed to transparency with our community, and our USP Token Buyback Guarantee is designed to help you have faith in your investment.

Your trust is paramount to us. We stand ready as your safety net, committed to buying back any USP Tokens issued by us at the original price the tokens were issued at. For more information, reference page 26 of our whitepaper.

The old USPC™ security token has been renamed USP™.

The old USPC™ security token has undergone a simple yet crucial change: it has been renamed to USP™. This strategic shift only involves the token’s name, with no alterations made to the smart contract, funds, or any other aspect of the token.

The renaming of USPC™ to USP reflects our strategic pivot and aligns with the introduction of the USP stablecoin. This shift simplifies our project’s structure and allows for a more distinct separation between the security token (USP) and the stablecoin (USPC™), providing a more comprehensive and accessible offering for our users.

No, your USP holdings remain unchanged and secure. You can still access them at invest.uspc.io. The only change made was the token’s name, ensuring continuity in your investments while adapting to our strategic shift and the introduction of the USPC™ stablecoin.

The USPC™ stablecoin is a next-generation ERC20 token pegged to the US dollar. It offers enhanced stability and security through a unique 2:1 reserve ratio, with reserves held in both cash and real estate assets. This innovative approach to backing stablecoins makes USPC™ an attractive choice for those seeking stability in the crypto market.

Stay tuned for the official launch announcement of the USPC™ stablecoin. Once launched, we’ll provide all necessary details regarding how and where to purchase USPC™, making it as simple and straightforward as possible for our users to become part of this groundbreaking stablecoin project.

USPC™’s exceptional 2:1 reserve ratio, backed by both cash and real estate assets, sets it apart from other stablecoins. This robust backing ensures greater stability and security, while offering transparency through proof of buyback reserves. Tied to United States Property Inc., USPC™ stands out as an innovative, reliable, and secure stablecoin option.

USP Now Live On DigiFinex!

We’re excited to announce that USP is now live on the DigiFinex exchange. This is an important milestone for USP as it marks our first listing on any crypto exchange. This also represents a major victory for tokenized real estate, as it demonstrates the potential for decentralized real estate investing!

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