BaFin approves first real estate token | BTC-ECHO
Security Token, Bitcoin and Regulatory Security
The Bitcoin price and its notorious volatility are troubling many investors. Thus, the number one cryptocurrency can fluctuate within a short time in the double-digit percentage range. In addition, the Bitcoin course, so the frequent reasoning, no "real values" from. For example, you often get "just" money for your cryptocurrencies.
Security Tokens offer an alternative here. Because this relatively new opportunity to invest its capital in a blockchain-based form offers Bitcoin, Ripple & Co. a certain degree of certainty, since in principle they are digital securities. The Fundament Group wants to push into this market with a Security Token Offering. This was approved by the Federal Financial Supervisory Authority. This makes it the second security token offering on German blockchain ground.
The Fundament Real Estate Token
In addition, in accordance with the regulations of the German Financial Services Authority BaFin, it offers the Fundament Real Estate Token, which, according to the company, is backed by real assets. This represents a security of a diversified real estate portfolio. According to own data foundation has a portfolio of several hundred million euros. The foundation group invests in commercial real estate in the metropolitan regions of Germany, including Hamburg, Frankfurt, Rostock and Jena.
So if the bitcoin price fluctuates too much, the prices of the foundation STO could be closer. Because each token has a face value of one euro at the time of issue. The interest rates should reflect the continuously rising value of the real estate portfolio of around four to eight percent. The focus, according to the announcement, is on investments in hotels, student apartments, kindergartens and offices.
Fundament Real Estate Token & the Ethereum Blockchain
The purchase of the tokens should also be handled via the Ethereum Blockchain. The Fundament Real Estate Token does not require any banks or clearing houses. Thus, investors can buy and sell at will. As a result, the Fundament Real Estate Token can theoretically be liquidated at any time. Thanks to the tokenization of the real estate sector, this will ultimately be a lot more liquid than before. Accordingly, the Foundation Group announces:
The Real Estate Token connects the old financial world with the emerging crypto industry. The acceptance of cryptocurrencies as a means of payment makes it possible to accept investments from all over the world. In addition, the tokenization of real estate investments allows very little investment starting from (one euro), which makes real estate investment accessible to everyone and promotes global financial integration.
Conclusion on the foundation Real Estate Token
Ultimately, the Fundament Real Estate Token is indeed a novelty in the Bitcoin ecosystem. While the list of cryptocurrencies continues to struggle with the aftermath of the ICO glutton of 2017 and struggles to sort out the numerous "shitcoins", the security tokens offer a new investment opportunity that promises more security.
Of course, if such a project is approved by the BaFin, this naturally promises a regulatory advantage over conventional cryptocurrencies such as Bitcoin and above all ICO coins such as Ripple, Ethereum, IOTA & Co.. Of course, the use case is different, depending on the cryptocurrency. In addition, one should not forget in the real estate sector, that this market tends to bubble formation.
More about Security Token Offerings in our tutorial.
Click here for the homepage of the Foundation Group.
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