The crypto-route towards asset investment

Ryan Thompson July 12, 2019 0

Britain is renowned for innovation in many fields, financial services being
one of the most prominent. An unusual but forward-thinking investment platform
has recently been launched with the mission of making it easier to invest in
assets, especially property, using the model of tokenisation.


Bitcoin investment risk” (CC BY-ND
2.0
) by QuoteInspector.com

Smartlands is the first blockchain-based crowdfunding investment company in
the UK. It will offer fractional ownership of investment portfolios at the
lowest buy-in level ever seen. Essentially, Smartlands is a global platform for
tokenisation of real-world economic assets. It uses its proprietary technology
to issue virtual shares (STs – Security Tokens), backed by real assets, like
property, agriculture or private equity. It recently unveiled its first
security token offering (STO), a share in a student accommodation complex in
Nottingham.

Challenging the
traditionalists

This article at https://www.propertyinvestortoday.co.uk/breaking-news/
highlights why this model is attractive for many investors, particularly
smaller ones. The rising demand for alternative income together with the
emergence of blockchain technology is creating a situation where it is possible
to challenge the ‘traditional institutional investment model, often seen as a
kind of ‘closed shop’.


Crowdfunding” (CC BY-SA
2.0
) by Rocío Lara

‘Crowdfunded’ jackpots

Other businesses have been reaping the benefits of applying the principles
of crowdfunding to their product lines for some time. A good example can be
seen at https://games.paddypower.com/c/jackpot-king,
where, as players pay to play, the amount generated across multiple game
portals is what funds the jackpot payout. In a sense, participants are buying
into an investment circle where the ‘asset’ is the jackpot. In conventional
jackpots, the prize is a fixed amount, whereas this is a progressive jackpot;
that is, it rises proportional to the number of people playing it, as with every
wager, the amount in the jackpot increases. Once someone wins it, it resets to
the base amount and the process begins again.

At https://totallygaming.com/news/online they
point out that crowdfunding becomes not only a good way of raising capital for
start-ups, but as a way of generating critical mass for an online investment
platform. In the iGaming sector, there’s a lot of latent interest and that
crowdfunding is “very much about momentum…and it is vital to hit the ground
running”. If you take games with a jackpot, the virtuous circle is the
incentive to participate – the more money fed in, the greater the value of the
jackpot and the more people will feed in…and so on.

Asset-investment at
lower risk

The review of Smartlands’ tokenised model at https://totalcrypto.io/smartlands/ predicts
that 2019 will see Security Token Offerings (STOs) become much more mainstream
in comparison to Initial Coin Offerings (ICOs). Why? Because
they represent real assets, unlike an ICO (Initial Coin Offering), where
you do not actually own a stake of whatever company you are investing in. STOs
present a much more attractive asset category with a much lower risk factor.

Opening
up investment opportunities 

Combining established cryptocurrencies with an innovative crowdfunding model
which is based on real assets, makes it much more likely that more and
more smaller investors will buy into it. As cryptocurrency gains more traction
in UK investment markets. its attraction is that it bypasses traditional
investment markets as well as allowing for much smaller divisions of shares.
This creates greater opportunity and incentives to diversify portfolios at
affordable amounts.

Reddit this article ↓

twitter