About Like ICO
Like ICO has certainly carved out a niche for itself in the crypto market. While most other competing companies focus on the rate of exchange through ICOs, blockchains and smart contracts, Likecoin has expanded via the platform of the real estate industry.
Oddly enough, no history has been provided on the origins of Likecoin. Your backstory is as good as ours.
Like any other cryptocurrency, Likecoin is easily converted between other types of the standard of exchange, particularly Ethers. In order for Likecoins to be purchased or traded, the digital wallets which are compatible with LIKE tokens and Ethers are the myEther wallet, Metamask – download from Chrome / Firefox browsers and imtoken, which is usable for both Android phones and iPhones while Mist and Parity are for the desktop.
Quite an entirely unique approach to home ownership, Likecoin has taken up a different torch and is marketing their cryptocurrency for not only token exchange, but also primarily hyper-focusing on funneling it into the real estate market. How does this work you ask?
Take the suggestion on the company’s website to purchase properties in Thailand for example. According to Likecoin (as well as other resources), property values in Thailand not only are inexpensive but also being that those properties are 100% private and tax-free, these variables enable the buyer to receive a higher yield on their return investment.
This is where Likecoin plays their hand; they eliminate the need for a middleman for real estate transactions and allow the buyer to directly purchase properties by exchanging the LIKE tokens for Ethers (ETH) or Bitcoins (BTC).
The LIKE ICO Verdict
We must say if you are looking to find a cash cow in the real estate market and the digital currency avenue, then you may have struck gold, but only in theory currently. While the company does not have a listed Whitepaper for an investigator to conduct their research, Likecoins’ project proposals seem intriguing. The market is hot for property investments in foreign countries, and utilizing cryptocurrency and blockchains seems to be another method to rake in extra cash and expand the network.
So here is why we have some skepticism: the platform requires users to invest in LIKE tokens, which once there is enough accumulated through crowd fundraising, the organizers of Likecoin will then invest in liquid real estate at 70%.
Sounds good conceivably. The current caveat in this plan is that its’ growth is based on exchange rates, which fluctuates daily in the market. For example, if you are looking to purchase a home, and 500s Likecoin can be exchanged for an Ether one moment, then the next day, the Likecoin value decreases, and exchange to Ethers requires 750 LIKE tokens…. That is a great fiscal volatility to be facing, much akin to those weird chemistry experiments back in high school.
Another variable to factor in the risk list is the timing it takes in order to convert this form of cryptocurrency, let alone any, to a liquid asset in that a property owner requires standard tender or fiat money. There are cases in which individuals proposed their down payment via Bitcoins, although the buyer was not able to sell off their tokens in time to solidify their offer. Among these few reasons alone, while handling cryptocurrency for homeownership and rental properties is an exciting business, one needs to be aware it is a massive gamble.
Furthermore, much to everyone’s chagrin, the government does deem Likecoin, Bitcoin and other cryptocurrencies taxable. If an individual is looking into purchasing a home by way of crypto coins, then tax rates can be another drawback.
As it stands, the buyer would pay approximately 20% in capital gains taxes and also be subjected to another tax slap of 3.8% on any appreciation of their cryptocurrency. Yikes! Since Likecoin is still in its early stages, taxation pay-out is a thought to surely consider to keep your assets working for you, rather than against.
All in all, while Likecoin is not the pioneer of home equity through cryptocurrency (Bitcoin already has a jump start), it may be a new hopeful endeavor in capital gain for those willing to take the plunge. If you don’t mind playing with chaos of course.