Convexity Properties announced the cancellation of its STO. It is bad news to the security tokens market as this project was the first tokenized REIT in the US. Now it’s back to the drawing board for these tokenized real estate developers.
The plan by Convexity Properties (Don Wilson, it chief executive is on the picture) was to host an STO to crowdfund the purchase of a 260 unit student residence for the University of South Carolina.
The property resides in a downtown Columbia neighborhood and features a host of world-class amenities. These amenities included a rooftop pool deck, fitness complex, a club lounge, and spacious luxury rooms. The project gained praise from the cryptocommunity with many analysts predicting the concept to be a huge success.
Investors were to get a share of the equity in the investment. Now, it appears that the deal is not going through for a multitude of reasons. Harbor’s Spokesperson, Kevin Young explained some of the issues that resulted in the decision to cancel the Convexity Properties STO. He said: “As often happens in real estate transactions, the issuer was unable to come to favorable terms with the existing mortgage lender. This was an exciting and new use case for tokenization, and we continue to believe this structure offers significant opportunity for creating additional liquidity in the real estate market.”