Prime-Ex, also known as Prime-Ex Perpetual, is a company that aims to disrupt the real estate industry using blockchain technology and cryptocurrency tokens. Here’s our review.
What Is Prime-Ex?
Prime-Ex, found online at Prime-Ex.com, is a blockchain technology company that promises to take control of the real estate process from beginning to end, including the selection of real estate, construction of properties, borrower financing, and even future maintenance.
The ultimate goal of Prime-Ex is to create an environment where new properties are built, sold, and financed within a single ecosystem.
The ecosystem revolves around PEX tokens. Blockchain technology is used to maintain document authenticity throughout the real estate process, and to authorize transactions. Token holders are eligible to receive 80% of Prime-Ex’s profits, while also getting a discount on any mortgage payments paid using PEX tokens.
How Does Prime-Ex Work?
Prime-Ex’s platform aims to use the blockchain to walk customers through all stages of the homebuilding process – from selecting the property, to building the property, to arranging borrower financing, and conducting future maintenance on the platform.
As proof that their concept will work, Prime-Ex is launching an initiative in Panama. The company is marketing itself to North American and European expats who wish to build properties in the “warm beaches and cool highlands of Panama”. Previously, Panamanian homebuilders have faced entry barriers related to home financing in Panama. That’s where Prime-Ex sees an opportunity.
“The object is to build, market, sell, and finance a sizable portion of houses within a two hour geographic location of Panama City to earn a significant ROI,” explains the official website. “Our solution streamlines the bureaucracy involved with providing residential lending and implementing novel security options that limit the homeowner’s risk in ways meant to maximize future profit for Prime-Ex Perpetual.”
What Problems Does Prime-Ex Seek To Solve?
Prime-Ex seeks to solve a number of problems in the real estate industry. The major problem they see is a lack of cohesion across all parties involved in real estate.
Under today’s real estate development system, land developers select properties by finding cheap land, developing that land, and selling it for double or triple the price. Once the land is sold the landowner is no longer involved in the real estate development process.
Homebuilders, meanwhile, cut corners to reduce costs throughout the building process. Prime-Ex’s whitepaper claims this is particularly bad in Panama, where home buyers are “lucky” to find a 2 year warranty on a new property. Generally, after a home has been built and sold, the home builder is no longer involved.
Banks, finally, provide financing to the landowner, home builder, and eventually, the home buyer. The property is held as collateral throughout this period. This means the bank gets a zero-risk investment at the expense of three different clients, generating three different profit cycles from the same piece of property.
Ultimately, through this system, Prime-Ex believes that everybody loses except for the banks. That’s where Prime-Ex sees an opportunity to use blockchain technology to create a better system.
The Prime-Ex Token Sale
There’s a total supply of 30 million PEX tokens. The tokens are priced at an initial rate of 1 PEX token = $1 USD.
25 million of the tokens are available to the public through the crowdsale. 4 million (13.3%) are reserved for the founders, 2.5% (750,000) are reserved for the pre-ICO bonus, and 0.8% (250,000) are saved for bounties.
The tokens appear to be used exclusively as a fundraising system. Prime-Ex will use the funds to “achieve its business objectives”. Then, they’ll deliver 80% of real estate profits to the token holder via annual dividend distributions.
The tokens will also be used to reward mortgage applicants. Buyers can get a discount by paying for mortgages in PEX tokens. This is designed to create a demand for PEX tokens on a monthly basis.
The pre-ICO began on September 18, with the general token sale taking place throughout September and October.
Who’s Behind Prime-Ex?
Prime-Ex is led by Co-Founder and Director Ulrich Schwark, Co-Founder and Director John Gilbert, and Director Theresa Schwark.
The company is headquartered in Panama City, Panama. It was founded in 2017.
Prime-Ex is a real estate development project that uses cryptocurrency and blockchain technology to make the real estate industry more efficient. The firm doesn’t seem to be quite as reliant on blockchain’s infrastructure as other blockchain companies – they only use the blockchain for the PEX token and document retention, for example. However, they’re rolling out the proof of concept across Panama over the coming months.
You can learn more about the Prime-Ex Perpetual ecosystem, including their development plans for the future, by visiting them online today at Prime-Ex.com.