Joey Krug | What Is Augur? Why Do Prediction Markets Matter for Real Estate?

Hi, my name is Joey Krug. I am Co-CIO at Pantera Capital, where we invest in the blockchain space, and I started a project called Auger, which is a prediction market platform on Ethereum.

Why Do Prediction Markets Matter for Real Estate?

So, you can use prediction markets, in general, to basically predict whatever you want to predict, right? And, so, an example in real estate could be: you would have a prediction market to predict what home values will be, you know how much they will increase in a certain zip code. So, an example can be, like, how much will home values increase over the next year in San Francisco, if you want to find out what the market thinks will happen due to all these tech IPOs, and maybe people will buy more homes.

What Is the Future of Real Estate?

You know, I think, if you look at the real estate market, I think, right now, it’s, it’s pretty inefficient; it’s one of those markets where there’s a lot of middlemen, fees are relatively high, and I think if you look at most industries in tech, what blockchain tech, in particular, is going to do is disintermediate a lot of those levels of fees. So, I guess, if you fast forward a decade, you know, I see less middlemen, fees coming down, and maybe you will see stuff like fractional ownership of real estate, where, you know, maybe you actually own part of a house you live in, but you don’t, you know, own the full thing, and it’s not just a regular mortgage, but it’s actually, like, ownership. Maybe you can actually even sell, you know, a fraction of your home to somebody else if you wanted. You know, interesting things like that.