Koia Team
February 14, 2022

Introducing NFTs linked to physical assets

We are launching asset-backed non-fungible tokens (NFTs) on Koia! 🌟

NFTs provide a huge opportunity to bridge physical and digital assets. NFTs act as unique and unchangeable digital ownership certificates, which makes them the perfect tool to open up access to alternative assets. 

Very soon, you will be able to own NFTs (“Fractions) linked to physical assets on Koia. We are pioneering the creation of asset-backed NFTs, which enable fractional ownership of physical assets. and can't wait to share the journey with you all. 

Our journey so far

It’s been almost a year since we started Koia, and like any startup we have had highs and lows.
From a simple idea on a whiteboard to raising $1.4 million from Seedcamp and other VCs and angel investors, we’ve been spreading the word about Koia and our ambition to people globally.

Our biggest challenge: how can we make fractional ownership possible?

This might seem like a simple question, but once we started digging into the details, questions and several obstacles arose: How do we make sure it is legal? Can we make this accessible to anyone (and not just accredited and wealthy investors)? How do we keep the costs manageable and therefore attractive to users? How can we make blockchain and Web3 technology accessible to everyone?

It was a steep learning curve, but we're truly excited about our solution and believe it will form a scalable foundation for a world-leading fractional ownership platform. 

How does the fractionalization process work?

Using blockchain technology, Koia mints digital non-fungible tokens (NFTs) called Fractions, which are linked to physical assets. Each asset can have hundreds or thousands of unique Fractions, which can be collected, traded and enjoyed. 

Users can buy the Fractions via our mobile or web app using either a wallet like MetaMask or, if you don’t yet have a crypto wallet, you can simply create one by signing up with your email address. Read more about how it works.

The benefits of using NFTs

We're bringing out the full potential of NFTs and are pioneering their use with physical assets. We believe tokenization and use of blockchain technology perfectly fits our use case and has true benefits.

  1. Accountability & Transparency

Blockchain provides transparency. If an asset is priced at, for example, $100,000 and we sell tokens for $100, we should only ever be able to sell 1,000 tokens. With every transaction being recorded on chain and for everyone to see, this is easily verifiable for outside parties and our users. 

  1. Accessibility 

Our vision is to make alternative assets accessible to anyone, and that means keeping minimum amounts to get started, as well as our fees low. Some of the solutions we considered, such as issuing security tokens, would cost thousands of dollars per asset listing. Other solutions like putting the asset in a company and crowdfunding for that company, were slightly more attractive, but come with other costs and complications. 

What about transaction fees (gas fees), you might wonder. Whereas buying NFTs using Ethereum does indeed typically carry high gas fees and only makes sense for high-value NFTs, we’ll be using the Polygon network, which means gas fees for our users are very minimal, typically costing no more than $0.50 in network fees per transaction.  

  1. Liquidity & Tradability 

We’re tapping into a fast moving and rapidly growing market. Huge amounts of money is being invested in crypto and NFTs by a diverse group of retail investors, collectors and institutions all adding to making this an active and liquid market. Using NFTs means that users will be able to trade their Fractions on Koia’s marketplace (to be launched later this year) as well as third-party NFT marketplaces.

We’re also excited about the broader future possibilities the Decentralized Finance  (DeFi) ecosystem provides. For example, Koia Fractions could be used as collateral to borrow money. 

The NFT market is evolving fast, and as the market grows and more infrastructure develops, liquidity and tradability will also increase. 

Finally, with the asset being securely in our custody and the NFT acting as a certificate of ownership and authentication, it can make trading physical assets a lot easier and cheaper. Currently, trading assets such as watches come with high commissions and trading costs, partially because the item needs to be re-authenticated each time it changes hands, a problem that NFTs can solve.

What’s next for Koia?

We’re now working hard on tweaking some of our tech, to match our new infrastructure. For example, we are busy integrating new payment methods and, developing secure smart contracts. But, we won’t be out of action for too long and our next drop will be happening in the next few weeks! 

To get a guaranteed spot for the next drop, join our Discord and find out how to get access.

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At Koia, we allow you to buy, trade and collect fractions of iconic assets, starting from $60. Our experts make sure to source and buy the best assets, and we take care of authentication, storage and insurance. All of the benefits, with none of the hassle.

The articles and information made available on Koia are provided for information and educational purposes only and do not constitute financial advice. You are advised to consult with an independent financial advisor for advice on your specific circumstances.