Real Markets ICO Review – REAL Investment Analysis

https://www.real.markets

ICO Details

Symbol – REAL

WhitepaperLink

When – Ongoing

How to Participate – ETH will be accepted in the sale.

Soft Cap – 100’000 ETH

Hard Cap – 200’000 ETH

Total Max Market Cap At ICO – ~140 Million USD

Exchange Rate: Scaling:

real2.jpg

Note: At current tier with 20% bonus the rate is 220 REAL per ETH

Total Tokens in Circulation At ICO – Variable


Overview

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Real Markets is a crowd-based property investment platform, aimed at users with lower amounts of investing power who are looking to enter the real estate markets. Real Estate is one of the biggest sectors of today’s financial world, and sadly, the high barrier to entry means that people with smaller amounts of cash simply aren’t able to enter this high-earning market. Real allows people to combine their liquid finances together to make high-value purchases of properties, allowing everyone who invested in the property a dividend stake of the ROE.

Real Markets is an interesting solution to the problem of low-liquidity individuals looking to enter the Real-Estate space, and while it certainly isn’t the first of its kind to offer this kind of service (examples include Realty Mogul and Crowdstreet), it is a pioneer to do so in the blockchain space – the additional incentives of the REAL token create a promising venture into the market and auspicious estimates on returns.


Team

bernardo.png

Bernardo Hernández

Bernardo Hernández is one of the leading Real Estate players in Spain, having founded such massive projects as Idealista.com. He has done work as a general manager for Flickr, as well as worked for 7 years in Senior Product Management for Google. His vision and position in the Real team will be a key piece in networking connections and managing the business.

 

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Arnau Porto

A Stanford University Graduate, Arnau Porto has been involved with many financial companies and prestigious organizations, including such names as JP Morgan, The Blackstone Group, and Viking Global Investors. Arnau will add a level of experience and professionalism to the advisory team of Real that will be sure to propel the team to success.


Positives

As pointed out by Cryptobeak in his review of Real Markets, one of the largest advantages of this project will be the natural self-capping of tokens that will happen due to the way the platform works. If you’d like to invest in real estate, you need to offer up some REAL in order to do so, and as more and more investment rounds take place for properties, the liquid REAL that is available to the market will lower over time. What this means is that there will be less REAL for sale and more invested in other projects – causing thin order books on the sell side and fuel for upwards mobility.

Another thing to keep in mind are their current ICO numbers – while their hard and soft caps are relatively large compared to the field of other projects, the way they set it up means you’re giving up a very small amount of extra bonus REAL in order to get a better idea of the total market cap around the end of the ICO. As of now, about 10 million dollars have been invested into REAL, making it an extremely lucrative lowcap ICO – naturally, this will change as this sale is ongoing, but it is important to keep in mind the numbers.

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Negatives

 

In the blockchain space, hype is easily one of the biggest factors when it comes to a projects short term desirability and long term expected value. Many great projects have come and gone who have simply not had the hype necessary to fuel themselves to greater heights, and this is one of the biggest problems that Real will have to face. With a solid business concept, a working MVP, and a strong team, Real has all the pieces in place to make a good blockchain project -however, without that hype factor, return on investments for Real will be muted and likely stagnant.

A marketing campaign will aid greatly in this effort, and while they have partitioned out ~7% of their share of the crowdfund money for marketing, it remains to be seen whether they can truly drive hype for this kind of concept.

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Conclusion

Real Markets is an extremely simple concept, but this simplicity is likely its biggest strength and why I can see this succeeding. It has a clear value proposition, backed by a crypto-asset with real utility attached to it, and fills a niche that as of yet has been underleveraged in the real world. Real is simply a solid project that will make its investors money in both the short and long term. A definite buy.

 

Investment Grade: 85%

5 thoughts on “Real Markets ICO Review – REAL Investment Analysis

  1. Very interesting overview. I do wonder why people would want to invest in real estate this way. Why not simply invest in a real estate ETF and own a small piece of a few hundred properties? Platforms like this and non blockchain platforms similar to them seem like an inferior way to invest into this type of market. Maybe it’s good for any backers but for the users? Especially long term. If I found out an ETF was an option I’d never invest on a platform like that again. Any thoughts?

    Liked by 1 person

    1. An ETF is a little bit different than the REAL platform – with REAL, you’re buying specific properties as opposed to an indexed average like the ETF solution. It’s similar to a trader buying and selling on his own instead of buying into an index fund – for some, it means more gains by “beating the market” in returns. A secondary benefit of the blockchain version of this idea is the ever-present immutability and transparency aspect. While for many other projects this would be a fluff piece, it actually makes sense with something like Real Estate.

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  2. Also – with ETF’s you’re two full steps away from the income producing asset – one layer for the ETF (with fees subtracted for management) and one layer for each of the REITs managing the assets (with significant fees subtracted for management). All these fees are effectively subtracted from the profits that you participate in as an equity holder. Direct investing removes these middle-men and most of the fees associated.

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  3. REAL had a fundamental flaw in their ICO. Presale participants were not required to pay for their tokens before the main token sale began. ( I have no idea why) They were only asked to buy within 48 hours of the start of the main token sale. I know this as I participated. Many presale participants chose to wait and see how the token sale was running and decided not to participate after seeing that the token sale was not as popular as other sales running that day (Monetha) . This is why they have now only raised a small portion of their total 100 000 Eth total.

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