BitProperty BTP decentralizes and democratizes real estate through blockchain technology and by allowing multiple investors to hold stakes in a given property.
Understanding BitProperty BTP
New to the cryptocurrency market is BitProperty, a platform that allows its users to purchase and profit from international real estate properties. Such platforms are popping up as they allow investors to make a passive income by facilitating the acquisition of property assets and generating a profit based on the proportion of a stakeholder’s shares.
In this way, real estate is tokenized and can be owned by multiple investors. Regardless of location, BitProperty users purchase tokens for a specific estate and share its value with the other token holders. Revenue is typically generated through property sales or rent.
BitProperty operates with two types of tokens, the main one being the central BTP token, with a total of 2.9 billion tokens released. Already, about $14 million was raised in 2017 through a token pre-sale and the general sale has not yet been announced.
Decentralizing Real Estate
Powered by Ethereum smart contracts, BitProperty was developed in an effort to democratize the real estate industry by allowing multiple investors to own and profit from different estate holdings. Users can also trade their shares and revenue channels in a cost-effective and seamless way.
Founded in blockchain technology, this platform offers the benefits of cryptocurrency market exchanges by allowing users to quickly transfer and trade assets. Structurally, blockchain markets insure security by allowing any individual to view and follow transactions. Smart contracts contribute to this by guaranteeing that only the agreed upon negotiation can occur, which prevents fraud or payment defaults.
As mentioned, BitProperty functions on two tokens: the BTP platform token, as well as individual property asset tokens. Real estate owners price their properties in the form of asset tokens, which can be purchased by investors, who then earn BTP tokens through transactions that occur within the platform directly proportionate to their share of the asset tokens.
Thus, real estate is represented in a specified amount of asset tokens that reflects the value of the property. An evaluator corroborates what the owner claims to help keep users protected. These tokens can be purchased in any percentage with different investors owning different amounts and are driven by investment targets set by owners.
Once targets are met, along with any other predetermined conditions, smart contracts are initiated to distribute profits to the investors. If the targets are not met, however, those who purchased asset tokens are refunded. Further profits from the asset performance, such as those generated by property sales and rent, are continually distributed according to individual holdings.
The division of real estate property assets is the result of this platform’s intention to democratize real estate as an industry. This allows more people who cannot afford entire estates on their own to have a share in one and make money off of it.
In addition to its focus on real estate, BitProperty owns a solar farm in Japan and offers its profits to BTP token holders. This allows BTP tokens to be backed by an asset that functions independently of the platform and carries value from the BitProperty launch date.
The BitProperty Team
Begun in late 2015, BitProperty was conceptualized in Japan and is not based in Switzerland. Its founders include Ryo Nomura as CEO and Sunta Oka as Head Project Manager.
Japanese regulators, such as the Ministry of Trade and Industry, approved the project in 2015 before the solar farm was purchased in early 2016. November of the same year initiated the development of the international real estate token platform.
The first fundraising event was focused on Japanese investors and was completed in May 2017. Coding and design for the platform was finalized shortly after and the company plans to release a beta version to the public in early 2018. A date has not yet been set, though it seems that the original public version will offer all functions envisioned.
BitProperty BTP ICO
The pre-sale was exclusive to Japanese investors, for which 35.1% of all tokens were reserved. The company is hoping to raise 100,000 ETH with the general public sale, for which 34.5% of all tokens are directed.
At least 50,000 ETH must be sold during the sale with a maximum cap of 100,000 ETH for the fundraiser to be successful, with refunds available if the minimum is not reached. As previously mentioned, 2.9 billion BTP tokens will be issued and developers are promising that no additional tokens will be created in the future, preventing inflation.
A further breakdown of token distribution includes: 10% for the corporation, 14.4% for the team share, and 6% for advisors.
Using BitProperty BTP
Despite a rising trend of decentralized real estate platforms, BitProperty appears to be quite mature in its development with respect to its formal plan. That being said, it seems that its public ICO has been stalled and has still not occurred by the beginning of February 2018.