Recently, TNCoin LLC launched TNCoin, one of the first real asset tokenized founds in the US. The company is a real investment fund based in Nashville, Tennessee. Due to prevailing demand for portability and fungibility of digital currencies, the TNCoin token will leverage the Stellar consensus algorithm to allocate tokenized shares to traders.
According to the manager of the parent firm, Luis del Mazo, TNCoin will transform the crypto sector by providing a more secure and more stable alternative to the existing options.
The TNCoin is ideal for crypto investors who desire to invest in an asset backed by real estate properties. In the ongoing first phase of contribution, TNCoin to raise an amount falling in the range of $5 million to $50 million. Initially, only accredited investors residing in the US were eligible for this coin offering.
However, the event is now open to any individual from across the globe. According to del Mazo, TNCoin will offer 30% bonus tokens to contributors until the crowdsale raise $10 million. Additionally, investors will be able to sell their TNCoin on crypto exchanges three months after the realization of the soft cap.
Notably, the TNCoin is a digital asset that can be held and sold in the future. As mentioned earlier, this token is one of the world’s first securitized investment funds in the property development industry to launch a liquefied asset security token. Fundamentally, TNCoin holders will get dividends for any transaction conducted by TNCoin LLC, including the collection of rent and sale of premises.
The first acquisition will be the residential estate located at 1601 Herman Street in Nashville. The premises currently has a 100% occupancy rate. If bought, the TNCoin will receive its initial backing from this estate, which houses 68 apartments and generates an annual revenue of $1.3 million. In this regard, del Mazo noted that the guaranteed income from monthly rents and appreciation of the assets will ensure that investors mitigate the effects of volatility.
The Stellar blockchain platform is designed to seamlessly integrate distributed ledger technology into the current technological infrastructure of the financial sector. Its corresponding consensus algorithm, the Stellar consensus protocol, is an open standard that facilitates the exchange of funds using payment processors, people and banking institutions.
Using smart contracts, this protocol guarantees the transparency of transactions conducted over electronic networks. The concept of the Stellar blockchain is derived from the economic theory, legal standards and theories of dependable and safe protocols.
In addition to security, the Stellar protocol is also renowned for is impressive performances, liquidity and user-friendliness. This makes it the ideal option for tokenization of assets. Stellar has an inbuilt trading platform, eliminating the necessity for a third-party exchange. Besides, token issuers can easily comply with the law by modifying smart contracts and adding KYC/AML provisions. Also, Stellar supports the customization and automation of auditing and dividend disbursement.
Similar to ERC20-based tokens, Stellar tokens can be listed on exchange platforms such as Binance and Coinbase. However, Stellar tokens have the upper hand over their ERC20 contemporaries because of the low remittance fees and the superior scalability of the Stellar blockchain. It is also impossible to embed complex malicious code into the Stellar network because it is based on a simple programming language. Remarkably, lost or stolen tokens are recoverable on the Stellar network.
Ultimately, TNCoin intends to empower investors to capitalize on this nascent asset class and tap the enormous potential of blockchain technology. After many successful years in property development, Luis del Mazo and Tanya Rodriguez have decided to delve into the crypto space. Precisely, these two have been in the reals estate industry for the last two decades. Over that period, they have overseen hundreds of deals.
Before joining real estate, Luis worked in the mortgage industry. He holds a Business Administration degree from the ITT Technical Institute. On the other hand, Tanya is an accredited realtor who has previously worked with the US Federal Housing Authority.