Analysis of ICO Acquaint
ACQUAINT is an on-chain real estate trading platform leveraging blockchain technology, artificial intelligence and virtual reality to provide a one of a kind online directory marketplace.
The founders of the project want to build upon the best features of cryptocurrencies, enabling fast transactions, lower fees and low cross-border transaction friction, enabling listings to sell to a growing worldwide audience of crypto-holders. They aim to build a smart contract generator issuing title deeds for marketplace integration that will become the crypto-contender to modern day real estate agencies in payments and a user friendly interface in asset transactions. The founders believe the property arena is one of the key value-generating uses for cryptocurrencies going forward, and that the ACQUAINT Platform will be able to create value for its 3 major stakeholders: the buyer, the sellers and the initial token backers. And Virtual Reality will optimize the search of properties, there’s no need to travel 7 continents showcasing only to buy one mansion in Africa.
The project looks interesting, but a number of questions remain. Buying and selling real estate in different countries has different legal regulation. There is no answer to these questions.
The maximum crowd sale cap is set at $9.000.000. Closed Beta will appear in April 2018. The product will have been fully developed by the end of 2018.
The ACQUAINT token will act as a redeemable contribution stake from backers, as a transactional token, that buyers can use in the ACQUAINT Platform itself alongside other major coins, and as a financial mechanism linking the ACQUAINT token value to the ACQUAINT Platform value. Property Investments following the ICO will allow them to establish a price floor for the token coupled with a strategic reserve to uphold the value of the tokens.
ACQUAINT will take 1-2% of the total sale as commission, compared to the average 5% with traditional real estate agencies.
There is no information about budget allocation.
The business plan is not sufficiently detailed and thoughtful. The main emphasis is on the ICO. As for the rest... Maybe, the founders of the project "will think of this tomorrow".
The project plans to attract interest at the expense of low commissions. On this occasion, the founders of the project claim the following:«Traditional real estate agents charge sellers up to 7%, our 1-2% spread will act as a marketing tool for more listings on the ACQUAINT site».
As a marketing events monthly target events are mentioned:
- The Blockchain Event (Florida)
- Blockshow Europe
- Blockshow Asia
- London Fintech Week
- Token Summit.
The project plans to involve the following categories of partners:• VR Labs
- Dual Listings
- Home Staging Companies.
But there is no clear marketing plan.
The team consists of 11 members with diverse experience in real estate trading, business development, finance, marketing, blockchain development. But the team clearly lacks legal competence.
The Vision of the Market
Data on the total number of transactions in the US real estate market and the number of transactions in cryptocurrencies are provided as a market analysis It can be concluded from the analysis that «only 0.3% of the total cryptocurrencies in circulation represents physical asset backed tokens». The founders of the project see a great prospect for the growth of real estate transactions concluded in cryptocurrencies. But the project lacks a detailed and thorough analytical research of the market. It is not clear why the founders of the project believe that real estate market participants will refuse the traditional forms of transactions in favor of blockchain and digital currencies. It is possible that this will happen, but not on a very large scale.
Understanding of the Target Audience
Only "a growing worldwide audience of crypto-holders" is mentioned in the White Paper. There is no detailed analysis of target audience segments.
The founders of the project see the advantages of ACQUAINT in the following:
- Diversification gateway for cryptocurrency holders without exchanging back to fiat, thus avoiding a double tax hit
- Immutable records including title deeds transfer and house repairs lodged on the blockchain with the distributed ledger system instantaneously rules out need for paperwork
- Cryptocurrency payments dramatically reduce the home closing process from 30+ days to within minutes, funds released to seller after new title deed generation on the blockchain
- Investments in different countries are made seamless with Virtual Reality interaction, the need to travel diminished.
If the project had a well-thought-out business plan and marketing strategy based on detailed market research, these advantages would really help the project to seize a market niche. But now they look as unproven assumptions.