2018 was the year when ICOs died a death. With almost all projects being seriously affected by market conditions, a lack of funding, as well as a host of other issues, the general trend was either failure, extreme price dumping, or forced reversals due to SEC regulatory threats.
In stark contrast to the demise of ICOs, the Security Token market started to gain traction. In previous articles, I wrote about STOs and their role in the cryptocurrency space, Why Should you Invest in Security Tokens.
Rather than own a utility token which gives no rights or say in the company or its project, security tokens actually give you skin in the game. There is hope that the ‘ownership’ and rights security tokens provide holders, will bring a more mature and pragmatic investor with longer-term views, thus reducing volatility and injecting stability into the market.
We have new platforms and solutions emerging which allow for the creation and selling of security tokens like DESICO, Polymath and a host of others enabling STOs.
I have been looking into how tokenization/cryptocurrency can be used in the Real Estate market. There seem to be a few options available; Work Force Coin, ReitBZ, QuantmRE, and BlockEstate to name a few.
The one that grabbed my attention the most is CurveBlock.io
CurveBlock aims to be the world’s first ever Blockchain-based property development company which pays token holders direct dividends from every project completed via Proof Of Stake (POS) smart wallets. Designed as a perfect antidote to the age-old challenges facing the industry, the platform rewards token holders with infinite dividends & charity voting rights. The ecosystem is designed in such a way that there is a seamless inter-switch between the native token and a secondary dividend token where dividend payments will be confirmed at various block height snapshots of the blockchain ledger when projects become liquid.
All transactions are on the public ledger using the blockchain, providing transparency to all.
Real estate development projects are sourced, purchased and built. Once complete they are sold to the open market (depending on market conditions).
To combat the boom and bust nature of the real estate market, CurveBlock has 2 separate strategies. During upward trends, the real estate is sold on the open market and dividends shared. During downward trends, CurveBlock will still develop property but utilize the rental market to make gains until such time the market picks up and the properties can be sold. Using this adaptive approach ensures that CurveBlock can continue to develop real estate regardless of market conditions.
I am impressed with CurveBlock’s plan to donate 5% from each development project to charities and the fact that token holders/investors get to vote for who receives these donations.
Below is a brief outline of the investing process:
- Buy CurveBlock Tokens (with GBP/USD/EUR/ETH)
- Stake your tokens against a property development
- When the projects are completed the properties are sold and token holders vote for a charity to receive 5% of the profits
- The rest of the profits are shared out with staked token holders & CurveBlock
- Receive your staked tokens back to either re-invest on another development or sell your tokens on the CurveBlock exchange.
The beauty of enabling cryptocurrency within the real estate space is the freedom it provides investors. The ‘no ties’ approach opens it up to those who may not have had the opportunity to invest in property previously either due to a lack of experience/knowledge or inability to meet the minimum investment commitments. Real estate investment could now become a mainstream investment opportunity for the masses and could, in turn, bring much more money into cryptocurrency.
I encourage you to check any of the real estate projects I mentioned previously. The premise of property development on the blockchain is exciting for the future for both real estate and cryptocurrency.
Towards the end of last year, I had serious concerns for the future of the blockchain. We had the demise of new projects and investment due to the collapse of the ICO market together with the prolonged bear market.
The emergence of Security Tokens, specifically their use in Real Estate is nothing short of a game changer and could be the catalyst to open the door to cryptocurrency to the masses.
Disclaimer: This article is based purely on my opinion. I do not endorse any of the companies or branding that I write about. I use them for demonstration purposes only, to make a point or as an example. This is not financial or any other form of advice. Always do your own research.