Caviar, found online at Caviar.io, aims to combine cryptocurrency and real estate together in a single token. Find out what that means today in our review.
What Is Caviar?
Caviar gives investors access to a diversified basket of real estate and cryptocurrencies managed by an algorithmic model.
The goal is to reduce investment volatility while capturing higher than average rates of return. Caviar will achieve these goals by combining crypto-asset investments with real estate investments in the United States. By allocating funds between crypto asset and real estate market, Caviar aims to provide income and growth to investors using a dual market approach and a single token.
Caviar isn’t some brand new startup: the company is a successor to Caviar Capital LP, a real estate investment fund that’s been active since 2013. Caviar has also already been used to fund at least two real estate investment projects (the addresses for both properties are listed on the Caviar.io official website).
The token sale for Caviar begins on November 28 with a pre-sale, followed by a general ICO starting on December 12. Token holders are entitled to a share (75%) of quarterly profits collected by the company.
Caviar Features & Benefits
Caviar is advertising all of the following features and benefits:
Dual Purpose: Caviar diversifies cryptocurrencies and crypto assets using income generating real estate loans to produce a risk-sensitive portfolio. Instead of exclusively investing in real estate or digital currencies, you can invest in both.
Downside Protection Backed by Stable Assets: In the case of a bear market in real estate or crypto, Caviar can shift investment to maximize upside.
Profit Sharing: Token holders receive 75% of quarterly profits via smart contract.
Stronger Predictive Power: Caviar uses a proprietary intelligent predictive model for crypto assets and cryptocurrency price forecasting backed by real data science.
Transparent: All transactions and investments are recorded and visible on the blockchain.
Strong Historical Performance: Caviar has 5 years of experience successfully managing a real estate fund, along with years of successful investments in crypto assets and other assets. The team also claims to have multiple million-plus exits along with crypto and academic experience. The 5 years of experience refers to Caviar Capital LP, the predecessor to Caviar that operated as a real estate investment fund since 2013.
Low Minimum Entry: There’s no minimum entry required to get into the crowdsale.
Token Value Growth: 20% of profits are reinvested back into the fund.
Guaranteed Liquidity: Capital is set aside quarterly to buy back and burn tokens to provide liquidity.
Community: You can earn rewards by participating in a real estate community of peers, mentors, developers, and service providers.
Crowdfunding Platform: Real estate developers can raise funds for their projects while token holders can earn additional profit.
How Does Caviar Work?
Caviar’s platform is based on blockchain technology. The blockchain serves as an intermediary between token holders and real estate developers. Token holders can deposit funds into the platform to earn interest, while real estate developers can raise funds through the platform.
The system is based on something called the Caviar Intelligent Predictive Model, or IPM, described as “an innovative artificial intelligence predictive scheme model based on machine learning approach for price forecasting in both short and long term projection timescales”. This allows for stronger predictive power and more effective asset allocation. The IPM uses a blend of historical data and time-invariant qualitative/quantitative metrics in combination with analysis of the cryptocurrency ecosystem and signals.
The Caviar website lists two specific projects that were recently funded by the platform, including homes in Middletown, CT and Stamford, CT. It appears that real estate developers used the Caviar platform to raise funds, then put those funds towards developing these properties.
Caviar Token Sale
The Caviar token sale seeks to raise $25 million for the company. The tokens are ERC20 tokens built on the Ethereum blockchain. Tokens are priced at a rate of $0.10 USD per token.
The pre-sale for Caviar tokens begins on November 28, with the general crowdsale beginning at 10am EST on December 12.
Of the total supply of tokens, 85% are being distributed during the token sale. The remaining amount is going to the company and advisors (12%) and bounties (3%).
75% of Caviar’s net quarterly profits will be distributed to token holders in the form of ETH via a smart contract. In addition, 20% of net quarterly profits will be reinvested back into the fund for token value growth, and 5% of net quarterly profits will be used to buyback and burn Caviar tokens.
Who’s Behind Caviar?
Caviar is led by Kirill Bensonoff, a serial entrepreneur with several multimillion dollar exits. Other key members of the team include Guy Neumann (a real estate entrepreneur) and Alex Shvayetsky (crypto trader and investor/entrepreneur).
Caviar emerged from a company called Caviar Capital LP, which was a real estate fund launched in 2013. Caviar is the successor to that fund. Over 4 years of operation, Caviar Capital LP provided financing for real estate development projects in the Northeastern United States with a 0% default rate and 0 late payments. That fund also outperformed the S&P 500 Real Estate and S&P 500 Bond indices by over 300%.
Caviar is a tokenized real estate fund that allows users to diversify their portfolio into both crypto assets and real estate. Caviar provides exposure to America’s real estate market, allowing investors to hedge against potential downturns while maximizing ROI.
75% of Caviar’s net quarterly profits are distributed to token holders. The token sale for Caviar starts on November 28 with a pre-sale, followed by an ICO beginning on December 12.