Global REIT ICO Review — Property Investment on the Blockchain
Today we are going to take a look at an ICO from a company combining a traditional form of investment with cryptocurrency and providing a token that will have a monthly dividend payout into the bargain.
The ICO in question is called Global REIT (Global Real Estate Investment Trust) and it seeks to integrate conventional real-estate investment with the blockchain.
Its purpose is to provide cryptocurrency investors with access to the real estate market. There are two kinds of token: GREM (Global Fund Manager Tokens) and GRET (Global Asset Tokens). The company will purchase a range of property assets including hotels, residential homes, and shopping malls financed by the ICO.
Real Estate Investment Trusts are financial instruments that allow investors the opportunity to invest in real estate without the need to purchase land or property. They form a part of many investment portfolios with income arising from rent, interest payments, and sales assets.
Essentially, Global REIT operates in a comparable way to conventional real estate investment trusts, but with the added benefit of running on a blockchain. The platform will make it easy for ordinary investors to access the real estate market and receive a monthly income dependent on market performance. Before REIT, this market was inaccessible to most investors as the barrier to entry for conventional REIT is very high.
In addition to providing access to REIT, the Global REIT platform will provide:
· Access to assets including free stays at Hospitality Assets.
· Reward points to exchange for various services
· Access to global REIT without the restrictions posed by conventional REIT.
· A share of fund management income
· Monthly dividends rather than lump sums
Built on the Ethereum blockchain, the Global REIT platform leverages smart contracts to issue real estate assets and issue dividends. The key components are:
· Asset management module — handles all frontend and backbend aspects of the assets including historical information, prices, dividends, etc. This information is passed to the transaction module.
· Security and compliance module — Implements all industry standard security checks and balances. It is responsible for eliminating fraud. Military grade security standards are adopted.
· Transaction module — Deals with all API and interface communications with the outside world. All transactions are validated by both the security and compliance module and the asset management module. The module executed participant instructions.
Owners of assets and REITs can place their assets under the management of the global REIT Fund Manager (GRFM) which will then be listed on the platform once compliance and other due diligence have been carried out. Investors can them choose what assets to invest in based on the comprehensive information on dividends etc. published on the platform.
Smart contracts are used to establish trust between the investor, asset owner, and GlobalREIT. Investors deposit cryptocurrency, and the asset owner registers with GRFM. Once the smart contract validated the asset the asset owner receives the currency and the investor receives an asset-backed token (GRET). The GRET can be traded on all global cryptocurrency exchanges.
The concept and design were carried out in 2017, and the company was formed in January 2018 with the blockchain technology platform developed the following month. Following the public sale in June 2018, future milestones include:
· June 2018: Purchase of first Hotel Asset for $75 million
· August 2018: Purchase or residential building for $225 million
· October 2018: Purchase of Shopping Mass
· December 2018: Purchase of the second hotel
Tokens and distribution
There are two kinds of tokens, GREM and GRET:
· GREM (Global Fund Manager Tokens) represent a share of the fund management company
· GRET (Global Asset Tokens) represent a share of the asset-owning company.
Initially investors will be dividends in either USD or USDT (Tether).
· Fund manager: 55%
· Pre-ICO: 29%
· Public ICO: 11%
· Advisors: 5%
· Asset contributor: 78%
· Pre-ICO: 16%
· Public ICO: 6%
The pre-ICO sale opened on 1st May 2018 and will end on 31st May 2018. Special bonuses are available during this period. The public ICO will open on 1st June 2018 and will close on 30th June 2018. Key information includes:
· Total GREM tokens: 200 million
· Total GRET tokens: 75million
· Available GREM tokens: 21,428,571
· Available GRET tokens: 4,500,000
· GREM price: 1 GREM = $0.07 USD
· GRET Price: 1 GRET = $1.00 USD
· Pre-ICO sale: 1st May 2018 to 31st May 2018
· Public ICO start: 1st June 2018
· End: 30th June 2018
· Accepted currencies: ERC-20, BTC
The ICO has generally received good ratings from ICO review sites, including the following:-
- ICO Bench: 4.5/5
- Track ICO: 4.6/5
- ICO Marks: 7.7/10
REITs have been operating for a long time and providing reliable returns to investors so it is no surprise to see a cryptocurrency project involving REITs.
Global Reits looks like a professional project with a strong management team and could deliver decent dividends if they are able to execute their plans successfully.
The pre-sale has started well with over $5 million raised so far, which is encouraging to see. It will be interesting to see how much they raise in the main sale and if they can achieve their hard cap of $20 million.