Real estate and cryptocurrency are two of the hottest investment plays in todays market. So getting exposure to both through a single token sounds like a winning proposition. Caviar token (CAV) is being offered through a token generation event set to last from December 12th 2017 to January 31st 2018. Here we’ll look at why this is one token sale that could be a winner.
#1 Ongoing income
Each quarter 75% of the net quarterly profits minus management fees and operating expenses will be distributed to Caviar token holders. This distribution will be in the form of ETH. This is done by smart contract providing complete transparency.
#2 Reinvestment and buyback
20% of net quarterly profits will be reinvested back in order to drive the growth of the value of the token. A further 5% will be used to buy back Caviar tokens. These tokens will then be burned. This will help to provide liquidity for Caviar token holders looking to sell. It will also decrease the available supply over time which should help to increase price.
#3 Caviar has minimised risk from default
Real estate in the Caviar ecosystem is meant to provide stability and income. Therefore one thing that investors will want to pay close attention to is the possibility of default. Caviar has aimed to minimise the possibility of default and subsequent losses on the loaned capital. To do this borrowers will need to provide a personal guarantee and a first lien position on the real estate asset. If foreclosure eventuates then Caviar will repossess the property. Caviar then has the ability to complete the construction and underwrite the asset. This means that even in the case of default Caviar should be able to complete the project profitably.
Read more about the Caviar ICO by visiting:
Caviar website: https://www.caviar.io/
Caviar white paper: https://s3.amazonaws.com/caviar-presentations/CaviarWhitepaper.pdf