The crypto-route towards asset investment

    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

    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 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, 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 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 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.


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