Expert Coin

Analysis of ICO Deedcoin

04.05.2018

Product

Deedcoin is a real estate network that directly connects home buyers/sellers and agents. The platform utilises blockchain technology to remove centralized bureaucratic authorities that increases costs for homeowners and agents. The platform also changes the way how customer finds his/her real estate agent. Users put their property information on the platform and link up with local Deedcoin agent. While others charge 6% commission, Deedcoin charges 1%. The network is already usable, there are partnered brokerages in 140 cities in the US.

Business Plan

Deedcoin operates in a network model. Customers use DEED token to decide the commission before linking with the Deedcoin agent. The platform fully integrated with current real estate infrastructure. Standard MLS options are utilized, all discounts are reflected on the standard HUD forms during property closing.

Deedcoin will launch two varieties of tokens: DEED and Deedcoin SAFT (DDS). DEED token is a utility one and it is limited to no more than 1500 DEED per a purchaser. DDS is a non-usable and non-transferable token, which will be burned after replacement with DEED. This token is issued for those who want to purchase more than 1500 tokens as a security; it is issuable to accredited investors only.

There will be no fees to brokers in the network, but there will be other revenue streams, like corporate real estate brokerage at core markets and advertising.     

Marketing Strategy

The marketing strategy is built around target audience of 25-44 years old. The following channels were selected for reaching customer: social media, billboard advertisements (since most of target audience selected are urban commuters) and TV spots (the WP offers a detailed explanation on how TV spots will be chosen).

The company is present on all social media platforms, the biggest number of followers is on Twitter - 14.5K.

Team

Project founders are licensed brokers with years of experience in the real estate industry. Other professional experiences include: investment management, entrepreneurship, engineering (including blockchain technology), business management, marketing. Advisors add expertise in consulting, media and advertising, legal, blockchain programming, compliance counseling.   

The Vision of the Market

Project’s founders are licensed brokers with vast experience in real estate business. They have clear vision of the market and its limitations, which is obvious from data and stats presented in the WP.  Main real-life issues within industry are: high commision fees, inefficient system resulting in high customer acquisition cost, random way of choosing real estate agents. Deedcoin brokerage platform offers solutions which address these problems.

Understanding of the Target Audience

The target audience is rather broad and includes real estate buyers and sellers, agents. Further segmentation is based on demographics and includes three groups: first-time buyers and sellers, equity-established homeowners, real estate investors and commercial property owners. The needs and habits of these groups are presented in the WP together with Deedcoin solutions. The marketing plan is created around these target segments.

Deedcoin initial launch will cover the U.S. International expansion of the network will happen later.

Competitive Advantage

There is no competitor analysis in the WP. One of the main advantages of Deedcoin platform is in its security and transparency. The following purchaser assurances are in place: SEC compliance, token escrow, state licensed staff, legal team, patent pending system, KYC and AML compliance.

The real estate market is high competitive and there are companies that utilises blockchain technology to address numerous limitations within the industry: Propy, Atlant, SALT Lending, ChromaWay and velox.RE - just to name a few. This requires an extensive competitor analysis, according to analysts from expert-coin rating.

Summary

Strengths: pending patent, working platform deedcoinhq.com. Detailed marketing plan. SEC compliance: an expert analysis was conducted (by HOWEY Analysis from Thompson Bukher LLP) to address whether or not Deedcoin would be considered “securities”. Clear vision of the market and understanding of target audience. The project has 14 advisors.  

Weaknesses: no financial plan/projections, no competitor analysis. The WP doesn’t have clear structure and is rather hard to follow.