Analysis of ICO Property Coin
Property Coin is a sophisticated, data driven and proprietary technology platform that identifies potential assets for acquisition.
Property Coin is designed to enable the growth of existing real estate business (Aperture) that uses a combination of proprietary technologies, market analysis, and human expertise to capitalize on investment opportunities in the $162 trillion global residential real estate market.
Property Coin is managed by Aperture, a California-based real estate technology and investment company that is innovating the way technology is used in the acquisition, rehabilitation and disposition of residential real estate.
In fact, the product already exists. It is a working business in the field of property renovation and resale and lending to small real estate investors. And the essence of the Property Coin project is to raise additional funds for investment.
This is a very atypical approach for ICO-projects, because usually money is collected for startups. In this case, Aperture works in the real sector of economy, and this is a big plus, despite the lack of novelty.
The White Paper describes the business model of Aperture. The company buys distressed property, repairs and renovates it and then sells the property at a higher price. In addition, the company provides loans to small real estate investors. Aperture will invest 100% of the net proceeds from the Property Coin ICO in real estate and loans owned through the Property Coin purchasing entity. Each coin holder will own a fractional percentage of all assets owned by Property Coin. Coin holders will also be entitled to 50% of the net profits from these property and loan investments. Aperture will re-invest those profits in new real estate related investments, with the intent of creating a natural price appreciation effect for coin holders.
While the team could put $100 million of capital to work very quickly, they seek to raise $50+ million via their ICO, with plans to raise more as they grow the platform.
The token is a security token and serves as an investment instrument.
The business plan is not typical for ICO, but it is consistent with the business model for which the founders of the project want to raise additional funds.
In this case, there is no marketing strategy inherent in ordinary ICO-projects. Property Coin project is only a way of additional financing of already existing real estate business. This fact should gain the confidence of investors. As for the direct promotion of ICO, we can note some activity in social networks:
- 686 Facebook followers, 10-100 likes of posts
- 1471 reader on Twitter, 10 – 100 retwistes and likes
- 2197 members inTelegram.
It is not so much if the project expects to raise more than $ 50 million. In this case, the founders of the project should promote it much more intensively.
The project team consists of 5 people with experience in buying and selling real estate, finance and investment. They are the employees of Aperture. The experience of each team member is described in detail. In general, we can say that the project team is skilled enough and has experience of working together.
The Vision of the Market
The White Paper gives an overview of the real estate market and the property investor loan market. There is not much information. A comparison with typical ICO projects in favor of Property Coin is also given. The project is intended for additional financing of the existing product. Perhaps that is why the founders of the project did not bother with a detailed analysis of the market, which already operates Aperture.
Understanding of the Target Audience
The target audience for which Property Coin is intended is not mentioned in the project description. Perhaps the project is designed for cryptocurrency investors, for whom tokens are issued.
The founders of Coin Property see the benefits of the project as follows:
- 100% asset backed. Property Coin is fully asset backed. 100% of the net proceeds of the ICO will be invested in real estate and loans.
- Growing asset base. Aperture expects the value of the underlying assets owned to increase over time as retained profits are reinvested.
- Proven technology. Property Coin is being issued by an innovative company with proprietary technology and an experienced management team. Tech development and infrastructure build is complete, beta tested, and operational with a profitable, real-money track record.
The project really looks much more solid and transparent in comparison with typical ICO. But it can hardly be called innovative. It's just a new way of investing.
The advantages of the project are the following:
- The project is based on already existing Aperture business and connected with real economy;
- Experienced and open team;
- The project is an investment tool for crypto-investors.
The disadvantages of the project are the lack of innovations and insufficiently active ICO marketing.