XRED – The First Cryptocurrency Fund for Real Estate Development and Investment
UK-based X Real Estate Development (XRED) aims to shatter the barriers for entry into real estate investing through their groundbreaking cryptocurrency fund – the first of its kind for real estate development and investment.
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Real estate investment has traditionally been the province of the already-wealthy. Who else but the wealthy could afford to purchase a property for several hundred thousand dollars (or more) and then sit back and hope that the property value increases enough over time to realize a profit?
As the first cryptocurrency fund to aim specifically for real estate development and investment, XRED is going to make real estate investment accessible to everyone through its unique investment platform. Built on the Ethereum blockchain, the platform will incorporate asset tokenization – a process of converting rights to a physical asset into a digital token – to enable people to invest in properties and realize profits based on the total share of an asset’s tokens owned by the investors.
In addition, the platform’s use of smart contracts will eliminate much of the time-consuming paperwork and costly intermediaries typically associated with real estate transactions. The removal of these unnecessary steps will have a significant impact on the final value of the transactions.
What Makes XRED Different from Other Real Estate Investment Platforms?
Unlike most real estate investment platforms, XRED doesn’t simply rent assets and hope for equity rise over a long period of time. Instead, they undertake the responsibility (and cost) of the construction and development on the real estate they purchase.
Why is this good for investors? Simple. It means that XRED has “skin in the game”. In other words, since XRED is devoting resources and funds to the development of its real estate properties, it has a vested interest in the success of its platform.
Once the ICO is funded, XRED will purchase its initial property site(s) in London to be developed for sale. By carrying out the construction and development themselves, XRED aims to achieve between 15 – 20% gross profit on each site. 75% of all profits made will be returned to investors in the form of dividends.
Furthermore, CEO Kevin Hollands will be putting part of his own personal residential property portfolio – 12 apartments in total – into the XRED fund, generating a gross income of $100,000 per annum. This will mean that the XRED fund starts with a guaranteed income.
About the Upcoming XRED ICO
The XRED ICO will begin on November 1, 2017, and run until December 15, 2017, or until the hard cap of $55.9 million is reached. There is a total XRED token supply of 65 million, which will be distributed as follows:
- 86% for purchase during pre-sale and ICO
- 12% purchased by the XRED fund
- 2% for XRED incentive campaign
The current exchange rate is 1 XRED token = $1 USD. Participants can purchase tokens with ETH only, however, BTC and LTC can be exchanged for ETH within the ICO’s built-in wallet using Shapeshift.
Early participants in the XRED ICO will be rewarded with scaling bonus tokens:
- 1st week: + 25% of bonus tokens
- 2nd week: + 20% of bonus tokens
- 3nd week: + 15% of bonus tokens
- 4rd week: + 10% of bonus tokens
- 5th week: + 5% of bonus tokens
- 6th week: 0% of bonus tokens
For more information about the XRED platform or the ICO please visit the official website and download the project whitepaper. You can also keep in touch with the XRED team on Facebook, Twitter, Slack, and Telegram.
Do you think that the tokenization of real estate through platforms like XRED will make real estate investing more accessible to would-be investors? Let us know in the comments below.
Images courtesy of Shutterstock, XRED, Flickr/John Nuttall