Now picture our earlier friend Mrs. Rodriguez, an aspiring homebuyer who is a single mom working two jobs in Atlanta. For years, that dream has been out of reach, as far away as Mars. Now, Webstar is delivering her a slice of that dream with tokenized real estate. As a result, we are left to wonder—is this a ladder up, or just another rung on a rigged ladder?
Democratizing Access Or Digital Divide?
Webstar’s CEO, Ricardo Haynes, on cultivating pathways and breaking down barriers. He dreams of solving the problem of access to real estate investment, including for people who don’t make a lot of money. And while the idea of fractional ownership sounds appealing, especially to those historically excluded from such opportunities, we need to ask: who is this really for?
Think about it. As much as the crypto industry likes to talk about decentralization, the crypto space remains useful only to those who have expertise and access. It serves the people who can afford the time to learn its intricacies. When Mrs. Rodriguez, presumably already stretching thin, is suddenly required to be a blockchain expert, is that really what we’re hoping for? Or are we risking putting her on course for a fall that could be utterly disastrous.
It’s akin to handing a starving person a complicated recipe instead of just giving them a loaf of bread. The notion of extreme self-sufficiency may seem empowering, but the lack of resources and training to do so is cruel. Webstar, like most tech companies right now, is in a precarious position. They’ll end up perpetuating a new digital divide, where those with the resources to acquire and adapt to this technology do quite well while everyone else gets left further behind.
Tokenization's Promise, Gentrification's Shadow
Webstar highlights increased liquidity and transparency. Tokens can be traded, offering flexibility. What about when these tokens, standing in for fractions of real estate in already underserved communities, turn into hot commodities?
Consider the ripple effect. This increased investment could be an opportunity spurred by tokenization, leading to renewed property values. Great for investors, right? What about the low-, moderate-, and fixed-income renters in those very communities? What happens to all the small businesses who are unable to keep up with rent that has gone through the roof? All of a sudden, Mrs. Rodriguez isn’t just having a tough time purchasing a home, she’s having a tough time remaining in her community.
This isn't just hypothetical. We’ve watched the consequences of this unfold before, haven’t we? Behind this promise of economic revitalization lies the cost of displacement and cultural erasure. Consider the “revitalization” of predominately Black neighborhoods in our nation’s largest cities – code speak often used for gentrification. Are we just digitizing and automating all of the same old predatory practices?
As of writing, the total global cryptocurrency market cap is about $3.08 trillion. As more investors enter the market, it is the tokenization of assets that will speed up. We have to be preventionistic by nature to the long term effects.
Hope Or Hot Air? A Call To Action
Webstar's project, like the broader trend of tokenizing physical assets, isn't inherently bad. Indeed, it can be an important force for good. Envision community-led real estate developments financed through tokenization, giving neighborhood residents the opportunity to accumulate wealth and be masters of their own fate. That's the awe/wonder side.
That takes a level of transparency, accountability, and community involvement that just doesn’t exist right now. We need to demand answers.
Webstar’s project can be a fine example of strong community empowerment, but only if it’s approached in a responsible and ethical manner. We are motivated by our outrage at the prospect of vulnerable populations being abused. It inspires our hope and hardens our resolve to continue to fight for transparency and accountability. We need to leave no one behind. We cannot allow a promise of economic progress to be used as yet another vehicle of oppression. The time to act is now.
- Demand Transparency: Contact Webstar and ask specific questions about their plans for community engagement, financial literacy education, and risk mitigation. Hold them accountable.
- Support Community Organizations: Invest in organizations that provide financial literacy training and advocate for affordable housing. These groups are on the front lines, fighting for the rights of vulnerable communities.
- Advocate for Regulation: Contact your elected officials and urge them to regulate the cryptocurrency industry to protect consumers from scams and predatory practices. The anxiety/fear of unregulated markets is real, and it's up to us to demand action.
- Think Before You Invest: Don't jump on the tokenization bandwagon without doing your research. Understand the risks, and be wary of promises that sound too good to be true.
Webstar's project has the potential to empower communities, but only if it is done responsibly and ethically. The anger/outrage we feel at the prospect of vulnerable populations being exploited should fuel our determination to demand transparency and accountability. We must ensure that no one is left behind. Let's not let the promise of progress become another tool of oppression. The time to act is now.
