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Crypto Real Estate Promises Riches, Delivers Blight
17 Mar
Summary
- A startup promised affordable property ownership via crypto tokens.
- Thousands invested globally, but Detroit properties decayed.
- City officials sued the startup for numerous blight violations.
In 2019, two brothers from Canada launched RealToken, a startup aiming to "democratize access to real estate investment" using cryptocurrency. Their model involved tokenizing properties, allowing individuals to own a fraction of a building for as little as $50. Investors worldwide were enticed by the potential for high annual returns and property value appreciation.
RealToken aggressively expanded its portfolio, acquiring roughly 500 buildings in Detroit and approximately 200 more across the Americas, valuing its holdings at around $150 million. While US residents were excluded due to regulations, over 16,000 individuals from 150 countries invested in RealT tokens.
Despite its digital success, the company faced significant real-world challenges. In the summer of 2025, the City of Detroit filed a lawsuit against RealToken and its founders, citing hundreds of blight violations. Properties like the one inhabited by tenant Cornell Dorris were declared unfit for habitation, with residents reporting issues such as rodent infestations and lack of essential utilities.
