Tokenizing and Investment in Real Estate on the Ethereum Blockchain.
The Alt.Estate ICO offers investors the opportunity to invest in fractions of properties anywhere in the world by means of its real estate property-specific tokenization system. The original property owners themselves will list and tokenize their properties on the website. Investors can then review the property and buy whichever percentage of tokens that they choose. All tokens are then transacted through smart contracts, thereby allowing for transparency and traceability of all transactions on the platform.
This means that multiple anonymous parties can invest in a property and be assured that they will proportionately receive their returns on their property investment, without need to seek out and evaluate their business partners prior to forming the partnership. Property owners will benefit, from this as well as they will have a higher turnover of capital when they sell, with far lower fees than through a traditional market. It will also make it more likely for the owner to receive the full asking price, without too much haggling from potential buyers. This also lowers the budget threshold for new investors to enter the real estate market.
The Alt.Estate ICO team has a protocol specifically designed to ensure that all transactions on the platform are compliant with legal standards and prerequisites. Part of this includes the implementation of a witness allocation system, as well as a voting and storage reward system, which will allow for the decentralized storage of all transactional data. All properties will be listed and transacted according to the legal requirements of the country in which they are located.
Alt.Estate ICO – The Problems
- Currently, intermediaries charge high fees to both buyers and sellers, which causes both parties to lose out financially.
- Transactions times are often delayed.
- Property investment opportunities are often limited to individuals with higher spending power.
- Liquidation of investment assets is often a time and paper-work intensive process.
- Properties can generally only be purchased for fiat currencies.
- Hardcopy documents can be lost or tampered with, thereby making dispute resolution a lengthy and complicated process.
- Buyer, seller, and property authentication is complicated and unreliable, especially when parties live in different countries.
Alt.Estate ICO – The Solution
- By adopting a decentralized peer-to-peer system, middlemen and the associated costs are removed from the equation.
- All transactions and agreement terms on the Alt.Estate ICO platform are governed by smart contracts, thereby increasing transaction time as well as ensuring traceability and accountability.
- The Alt.Estate ICO is launching based on an existing, functional platform.
- Tokenization of properties increases likelihood of quick property and investment rates, as well as improving accessibility of property investment opportunities to new entrants.
- Investors can balance their portfolios with across a number of small investments, rather than locking higher amounts of funds in one or two large investments.
- Property investment becomes accessible regardless of geographic limitations.
- All platform users and properties will undergo the necessary KYC procedures. Property authentication and appraisals will be conducted by Alt.Estate representatives where necessary.
- Certain platform users will provide witness services. They will be responsible for recording and approving transactions.
- Each transaction will incur a 2% fee, as opposed to the usual 30% fee.
- Investors can enter the investment market with a minimum of $100 USD.
Alt.Estate ICO’s ALT and SQM Token Utility
- All fees including transaction, management, and other services provided are charged in ALT tokens.
- Property tokens are traded in ALT tokens. These property tokens are listed on the platform as SQM tokens, each with that property’s associated registration number.
- These SQM tokens provide their token holders with voting rights and represent their ownership of the associated percentage of that specific property.
- SQM’s with the status of securities will be aligned with the necessary legal requirements.
- These SQM tokens can be transacted on a number of exchanges outside of the Alt.Estate ICO platform itself.
- Witnesses, lawyers and other service providers will be remunerated with ALT tokens.
Atl.Estate ICO Details
For Sale: ~8.87 Billion ALT
Soft Cap: $1 Million USD
Hard Cap: $30 Million USD
Goal: $15 Million USD
Price: 1 ALT = 0.00001 ETH
ICO Start Date: May 16, 2018
ICO End Date: July 31, 2018