The Swiss retail data startup has started the pre-sale of eLOC – short for eLocations Coin.
The move comes after a successful private sale phase, which had requests exceeding its soft cap target by 300%. A soft cap target is the minimum goal a cryptocurrency aims to receive in the first wave of investments.
The Initial Coin Offering aims to raise €50m to re-invest into the real estate platform. The funds raised will be used to grow the eLocations.com retail property platform and ultimately to leverage blockchain technology, with the aim of reducing delays in leasing commercial real estate. The platform also hopes to introduce smart lease contracts using blockchain.
The ICO pre-sale is the token sale event before the official “public” crowd sale. eLocations will share 60% of its net income with token holders, with estimated earnings meaning token holders can expect 12% return annually. Investors in this stage will also receive bonus shares of up to 30%. The public sale of the eLOC coin is set to start at the end of 2018.
These ‘security tokens’ will also be exchangeable for ‘utility tokens’, which eLocations plans to release next year. These can be used to unlock premium features on the listing platform, street maps, rent comparisons, ‘oracle’ forecasting data and reports.
Ultimately, eLocations plans for properties on its site to be leased, bought and sold using the tokens.
eLocations founder and CEO Marc Riebe commented: “This is a milestone event – not just for us, but for the whole sector. Buyers are recognising the seismic shifts in the commercial real estate sector – especially retail on the ground floors of prime locations – and seeing disruption approaching over the horizon. It’s time for them to get off the fence and seize the opportunity to become actively involved.”
Dan Innes, co-founder and chief marketing officer added: “We tested the water with our business model, attending dozens of proptech and blockchain events around the world and pitching to thousands of industry professionals including sceptics from within the conventional real estate market where there is little to no visibility. We answered their questions, and feedback from investors had been unanimously positive – not only about our initiative but also the token sale.”
Here is a 1-minute overview of the company from Dan at MIPIM PropTech Europe this year:
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