Using an ICO for buying real estate or seed capital

Rental Property Investor · Philadelphia, PA · Member since 2014 · 240 posts · 94 votes

Does anyone have any experience with starting an Initial Coin Offering (ICO)? Would it be theoretically possible to use an ICO for seed capital or equity capital to buy a large property?

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Joseph M.

Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes

Vince DeCrow Very interesting article . I had read about utility tokens but had not heard of security tokens . What would you say would be the cost to launch an ICO specifically a real estate one ? It'll be interesting to see what happens with Crypto and ICOs in 2018 . I feel like the government will be regulating more.

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Severin Sadjina
Rental Property Investor · Ålesund, Norway · Member since 2017 · 48 posts · 24 votes
9y
How'd the coin come in, what would it be for? I don't get what the concept is here.
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Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
9y
@Severin Sadjina
"An ICO is an event in which a new cryptocurrency project sells part of its cryptocurrency tokens to early adopters and enthusiasts in exchange for money today. ICOs provide a way for cryptocurrency project creators to raise money for their operations. Most ICOs raise money in Bitcoin or other cryptocurrencies."
Private Mortgage Financing Partners, LLC
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Severin Sadjina
Rental Property Investor · Ålesund, Norway · Member since 2017 · 48 posts · 24 votes
9y
@Don Konipol Thanks, Dan, that I do understand. But I am wondering how you would sell people on using an ICO to fund a property? What's the point/use of having your own coin in that scenario? What would the Blockchain be used for?
I mean, I see how this sounds great from the receiving end, but again, how'd you justify needing a dedicated coin for this?
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Joseph M.
Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes
8y
Interesting question. I've been looking at ICOs a lot recently. There are now thousands of different coins out there. I've noticed that there are some real estate related blockchain projects that have done ICOs or are doing ICOs.
This one sounds similar in a way to what you might be talking about. Just happened across it.
"
Caviar seeks to reduce investment volatility (“beta”) while capturing higher than average rates of return (“alpha”). Caviar will achieve these goals by combining investments in fast-appreciating crypto-assets with income-generating short-term loans, backed by real estate in the United States. By re-allocating funds between crypto and real estate markets, Caviar aims to provide income and growth via dual market exposure in a single token."
https://www.caviar.io/
These are the people behind it. They are hard money lenders currently.
https://caviar.capital/
So many of these ICOs now. Over 1500 I believe . Some of the returns have been really insane for some of them, but of course very risk as some have dropped a lot too. Just seems like within the past few months many have skyrocketed. When looking at the charts.
As far as starting an ICO i've heard it can cost $100,000+ , and a lot of money is spent on marketing the ICO.
There are certain companies dedicated to helping you launch them and promote them I see.
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Vince DeCrow
Chicago, IL · Member since 2016 · 94 posts · 87 votes
8y
@Account Closed I just posted a blog on this topic. Feel free to share opinions!
The Low-Down on Real Estate ICOs
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Joseph M.
Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes
8y
Vince DeCrow Very interesting article . I had read about utility tokens but had not heard of security tokens . What would you say would be the cost to launch an ICO specifically a real estate one ? It'll be interesting to see what happens with Crypto and ICOs in 2018 . I feel like the government will be regulating more.
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Vince DeCrow
Chicago, IL · Member since 2016 · 94 posts · 87 votes
8y
@Joseph M. Than you. Since its in such an early stage that's hard to say. But here is a link to ATLANT's whitepaper. ATLANT calls itself the "Worlds Real Estate Blockchain Platform" and the whitepaper discusses, in depth, the idea of tokenized real estate ownership and the use of blockchain technology to create more efficiency and ultimately lower costs of real estate transactions.
ATLANT Whitepaper
I agree that regulation seems inevitable. If you are really interested in decentralized organizations (like blockchains), there is a book out there I would recommend that is called "The Spider and the Starfish" that discusses the power, adaptability, and resiliency of decentralized organizations in our society. For example: Craigs List, Skype, and Wikipedia.
-Vince
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Joseph M.
Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes
8y
Thanks for the link to the ATLANT white paper . I'll check it out also for the book recommendation . Looked it up on Amazon and looks really interesting. It's amazing how hot blockchain is right now . There was one stock that announced they are a crypto company and the stock surged 2600 percent in a week ! It seems like people are just hearing those terms and jumping on it . https://www.bloomberg.com/news/articles/2017-12-18/fintech-mircocap-stock-jumps-2-400-after-touting-crypto-link I am sure most of these companies won't be around forever but I dont think the technology will be going away especially with huge companies researching and implementing it . I was young during the dot com bubble but was following stocks and the market at the time and this feels very similar with these tokens surging so much in price . So far I've only invested a very small amount in ICO , the team seemed very legit and they already have an existing related legit business . Still trying to figure out token distribution and actually being able to trade on the crypto exchanges it's been interesting though . It's not a user friendly experience and there's lots of new terminology and words to learn and different random tools like wallets etc .. but that's kind of what makes it fun too .
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Vince DeCrow
Chicago, IL · Member since 2016 · 94 posts · 87 votes
8y
@Joseph M. Ahh, yes I heard Longfin and several others like it...that's a pretty big and largely speculative driven move for a stock with a $3.5 billion market cap. I am very weary of company's like that with no earnings and that have only been around for 4 months.
In regards to the ICO you invested in - is it a real estate related company?
-Vince
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