While the crypto boom has taken the financial world by storm, with investors seeing gains they would never have realized in traditional markets; there is a lot of volatility that many do not seem to acknowledge until they experience the downside. Investing in the gold-rush mentality is what happened back in the dotcom bubble, and the same may happen in the crypto boom as well.
What if there was a low-risk, high-return investment option that capitalized on the crypto market as well as hedging against volatility by tapping into one of the most stable markets, i.e. real estate?
Caviar.io is a project that aims to do exactly that by creating data-driven, dual-purpose model that takes advantage of crypto-assets as well as U.S. real estate by the tokenization of assets. The reason why Caviar is in a solid position to make this a reality is because it is the successor to a company with a proven track record in real estate financing services and short-term loans – Caviar Capital LP.
With Caviar’s business model, investors get to hold diversified portfolios that leverage both cryptos (high-risk) and real estate (low-risk) for more balanced returns. Additionally, Caviar, given its track record and experience in real estate markets, is in the best position to manage such portfolios – moving investments from crypto-assets to real estate and back in order to manage risk and maximize profits.
The platform is further aided by Caviar’s Intelligent Predictive Model (IPM), which takes multiple data streams, analyses them and provides future predictions; allowing for better asset allocation.
In terms of real estate lending, Caviar will allocate some of the funds to be loaned out to entrepreneurs and real estate developers, especially the state of Connecticut, where Caviar already has an established presence and a network that can be leveraged.
Profits from the whole venture will be shared with Caviar token holders. Running on the Ethereum blockchain, Caviar is going to be an ERC20 token and profits will be distributed quarterly, using smart contracts.
The percentage of profit distribution is as under:
-75% goes to token holders
-20% is reinvested back into the fund
-5% is reserved for buying back tokens and burning them to increase value
The token sale aims to generate $25 million with 375,000,000 tokens, priced at 10 cents each. Presale begins on November 28, 2017, after which the crowdsale date will be announced.
Overall, Caviar aims to solve multiple problems in a market that is poised to attract capital but is not stable enough. By hedging investments between a very high-risk crypto market and a low-risk real estate market, the platform can deliver optimal returns without over-exposing investors.
The Caviar pre-sale begins on November 28, 2017. To contribute visit: caviar.io