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ICO Analysis: Propy

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Doesn’t matter how innovative things get, the blockchain can’t move the levers of the government. The blockchain can’t move deeds and property titles, it just can’t. There’s no solving this. In anything related to real estate, you’re going to have multiple levels of government interference. In a sense, in some respects, government is really a primitive form of blockchain which acts as a ledger for property titles, fiat currency, social norms in the form of laws, and more. We have to establish this before we talk about Propy, because otherwise people may get distracted and forget this basic fact or they may think it’s a fatal flaw we’ve missed.

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As the blogger Luke Stokes reminds us, people would get off track and forget to care about whether this thing is legally possible or not.

Right now, I think the answer is obvious. Very few people care. Many don’t even read a white paper before jumping into an ICO. It’s all about quick gains. Who can blame them. Rationality can’t stand up against reality when the reality of returns is real in this speculative, quickly growing ecosystem.

We basically rated Eros.Vision as a scam on those grounds, but we’re not predicting anything close to that level of negativity here. It’s just that when you talk about property swaps, you’re not talking about something that I can actually give to you, even though it’s mine. I can grant you access and everything, vacate the place, let you occupy it, et cetera, but it’s not really your property until the government has registered it as yours, and at that point, it becomes your liability. So when we’re talking about Propy, which proports to make property swapping all the easier through the miracle of the blockchain, we’ve got to be cognizant of this fact.

Yet, we must start out on a positive note: the disruption of the property market is going to be a lucrative endeavor, anyway you look at it. We don’t mean, through this statement, to imply, necessarily at least, that Propy will be doing that. But we do mean to imply that property-related ICOs are the kind to be on the lookout for, and as such, we’re covering a few this week.

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Propy begins their whitepaper with some fairly obvious statements that justify our previous paragraph but do nothing to establish what Propy is. A whitepaper is meant to describe something that will be created or is being noticed as a trend, among other purposes, but it’s not meant to be a literary elucidation of historical fact like this:

Today, the global real estate market is worth $217 trillion and makes up more than half the value of all mainstream assets worldwide3. One great differentiator between real estate and other major asset classes is liquidity. Compared to exchange-traded securities such as equities and government bonds, real estate markets are not as organized or efficient as other markets, with incredibly slow transaction times and less efficient price discovery mechanisms. As a result, substantial capital is trapped in less liquid investments, often concentrated in certain geographic areas devoid of domestic investment opportunities. While many investors with excess liquidity would welcome the opportunity to invest in foreign real estate assets, there are currently substantial impediments to such investment activity.

We infer from the above that what we’re getting into is in fact international real estate, in some cases at least. Well, again, this can be problematic on many levels, and a monumental task in legal terms. We have to have a very healthy skepticism of the project as a result.

We can hope that investors will keep the thing afloat until it succeeds – because we believe that such a thing can succeed – but we don’t have a lot of faith in our fellow funders. Everyone’s looking to cash out as soon as it’s profitable to do so, after all, which is why we seek ideas that have incredibly high ceilings on their profit, so everyone can make something. And while we may have that in Propy, in a sense, what we don’t have, on the face, is something that we can envision actually happening. But let’s look a bit deeper into how it works, then into the token, and deliver a verdict on Propy.

Propy aims to solve the problems facing international real estate transactions by creating a novel unified property store and asset transfer platform for the global real estate industry. Initially the Propy Registry will mirror official land registry records in which transfers of real estate are recorded. Ultimately, however, Propy’s vision is that jurisdictions will adopt the Propy Registry as their official ledger of record such that the transfer of a property on the Propy Registry constitutes the legal transfer of the property and the legal registration of that transfer. By leveraging Propy Registry and Propy’s smart contracts platform, unnecessary delays and impediments inherent to legacy property rights registrations systems could be eliminated. The Propy platform seeks to enhance the security of transactions while reducing inefficiencies through its innovative use of mobile, cloud and blockchain technologies linking buyers, sellers, investors and registries around the world.

Let’s repeat a piece of the above before moving forward: Propy’s vision is that jurisdictions will adopt the Propy Registry as their official ledger of record such that the transfer of a property on the Propy Registry constitutes the legal transfer of the property and the legal registration of that transfer.

In short, Propy wants to become the de facto deliverer of governments from the woes of legacy controls. Controls that they establish and have full dominion over. Is there some inherent benefit to governments from increased transparency? Of course there isn’t. The opaque nature of governmental operations is what allows them to extract as much from the populace in the form of taxation as they wish, and to waste the funds as freely as they wish. While it would benefit said populace to bring transparency to government land registries, it would benefit the governments very little, for the most part, although there is an efficiency argument which is astutely made in the selfsame whitepaper:

Propy’s engineering team has designed a real estate transaction tool powered by smart contracts, combining solutions from the legal, blockchain and payments industries. Using blockchain technology, Propy has prototyped some of the core technology that will become the Propy Registry as a DApp that allows each party to a real estate transaction — including the broker, buyer, seller and title agent/notary—to sign off on a transaction for properties located in California, which is Propy’s intended first market.

There’s more to be said on the transparency in government angle, which is that there are political gains to be made from promoting transparency. That they’re targeting California seems legitimate, but again, we have huge doubts about this whole thing.

It should be noted that Propy already has a working application.

Now let’s examine what the token does and deliver a verdict.

Propy Token (PRO)

The PRO token has an interesting value proposition that means this token will have real value if the platform actually gains traction. This is to say, if a jurisdiction actually were to adopt the Propy platform (imagine that!), then this token will have significant value because it will be required to actually sell property – it will therefore become built into real estate costs, and will be extremely affordable since through the real estate platforms that can be built on top of Propy, we will see a reduction in the need for middlemen such as real estate agents, and with their fees disappearing plenty of market room will be made for the cost of the PRO token. But all of this, again, depends on a jurisdiction somewhere actually adoption this platform and not one brought in through some manner of cronyism.

The PRO tokens are designed to be used to unlock a smart contract for title transfer in the Propy Registry. PRO tokens are built on the ERC-20 token standard, which allows for simple integration into users‘ wallets. The essential and obligatory steps for a real estate acquisition on Propy Registry includes the execution of the Deed Contract and Title Contract, which are necessary for the transfer of property title and the recording of the change of ownership. The Propy Registry, will require the use of PROs to pay the associated “Registry Fees” to record these modification on blockchain.

The Verdict

We feel that any potential adoption of the Propy platform will be mired down in numerous legal hurdles, including security audits. Additionally, the cronyist nature of governments means that competing platforms will have a leg-up depending on the jurisdiction. This is to say that even if Propy takes off, it will never be the only such platform for property transfer. That the whole thing relies so heavily on government movement really makes the thing unattractive to us.

Risk

  • Relying on governments and regulators to eventually choose Propy as the default platform. -3
  • Cronyism creates impossible competition in various places, displacing Propy significantly enough to lower the token’s value. -0.5
  • Unlikely to have real-world value in the short-term. -0.25
  • HUGE AMOUNT OF TOKENS NOT ON MARKET IMMEDIATELY. -0.25

Growth Potential

  • Could disrupt real estate market, and free up lots of cash currently going to broker fees for a marketplace of such tokens. However, very unlikely to be the first major player or the only player, ever. +5
  • Identifies a great opportunity on a global level in the ability to swap real estate and other assets over the blockchain. Successful execution will be incredibly lucrative. +2

Disposition

We come upon a 4 (7-4) as far as numerical dispositions go with Propy. It’s got a long-term value proposition that depends on a lot of factors which are hard to predict, so we’ll say you’ve got a 40% chance of really making a huge buck on it. Hype around it has been positive and copious, however, so getting in at ICO prices might yield short-term profits.

Investment Details

100 million tokens are currently being generated, with 65% being held away from sale. The rather confusing and slanted distribution looks like this:

It appears that funds will be raised until September 15th, and the amount raised will be dispersed among the 35 million tokens in terms of how much they are valued.

Visit https://tokensale.propy.com before then if you are interested in participating in the PRO ICO.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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5 stars on average, based on 2 rated postsP. H. Madore has covered the cryptocurrency beat over the course of hundreds of articles for Hacked's sister site, CryptoCoinsNews, as well as some of her competitors. He is a major contributing developer to the Woodcoin project, and has made technical contributions on a number of other cryptocurrency projects. In spare time, he recently began a more personalized, weekly newsletter at http://ico.phm.link




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  1. jusdavi

    August 24, 2017 at 1:18 am

    Check out CPROP https://cprop.io

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Analysis

The Crypto Bull Is Off Of Life Support

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There may be some bad days for cryptocurrencies in the future.  There may even be a few bad weeks. But crypto markets survived the worst shellacking in their brief history.  The soon to be ending month of April is an appropriate time for Mark Twain: “Reports of my demise have been greatly exaggerated”.

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Anytime an asset class gains $100 billion in value over the course just under 30 days, the death watch is over.  Anytime the largest member (bitcoin) gains 30% in value and still ends up being the weakest major performer, the crypto bull market is not only off life support, it is alive and in recovery.

Signs of Better Times

Making highly successful predictions about the direction and magnitude of stocks, bonds or cryptocurrency is a 51% proposition. What this means is that at least 49% of the time, you are going to be wrong.  

At least with stocks and bonds there is a huge database that can be massaged in the hope of  accurately predicting the future. None of that applies to crypto. So here are some of the things that create confidence that the future will be far better than the most recent past.

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Relative Value

When the stock market is near a record high,  interest rates are headed much higher and the market fear index, the VIX, suddenly shoots up, this is a clear sign of an overvalued market for conventional intangible assets.  The same can be said for tangible things like real estate.

After having lost more than half their value in something like 90 days, cryptocurrencies offer comparative value.  Most interesting is how the smallest and most speculative cryptos experienced the best performance. That type of recovery never took place in the post dotcom period.

This is a measure of long term vision investors are applying.  Many of these Gen III projects are little more than white papers and promises at this stage.  This is good to remember the next time someone drags up the notion of a crypto bubble.

Skeptics will point out the thin trading in many of these Gen III names as the underlying reason for their quantum moves.  There is probably some truth here, but simple risk analysis argues in favor of the big familiar names like bitcoin holding leadership.  Crypto investors obviously see things differently.

Cryptocurrencies Can Take A Punch

While watching the favorable price action in recent weeks, there was little obvious impact from the same regulators that contributed to the Q1 price avalanche.  What we are referring to is the April 23rd talk at the MIT Technology Review: Business of Blockchain.

The secession was headlined by an address by Gary Gensler the former chair of the CFTC. The issue at hand: are cryptocurrencies securities and thus regulated by the SEC?  In my mind, Gensler exploded a bomb: Ethereum and Ripple were securities while bitcoin fit the description of a medium of exchange.

Wow, think about this for a second.  If Ethereum was truly a security that could spell a miserable amount of registration work to conform with SEC regs.  While that would be unpleasant, the implications for the thousands of ICO tokens using the Ethereum platform could be far worse.  Fortunately, Gensler isn’t running the SEC but his legal arguments can and probably will be used at some point.

Back in February, when crypto prices were tumbling, Gensler’s comments would surely added to the fear and selling pressure.  On the day of Gensler’s talk, ether rose in price by nearly 7% according to Coinbase while Ripple gained 8%. This shows that cryptocurrency investors are learning to take a punch without losing perspective.

Trade Signs Are Good

We can all pretty much agree that we are relieved when see prices are rising.  However, when price increases are driven by higher volume, that gets technical analysts buzzing. Since the beginning of April, bitcoin transactions have increased 90% and Ethereum by 50%.  While all of this has been happening the median fee for bitcoin has been $0.16 and ETH is an even lower $0.07. While this isn’t exactly free, it is a gargantuan improvement over the $30 bitcoin investors were paying back in December.

A Two Way Street

Not every period will be as profitable as the month of April. Double digit price changes, the hallmark of this market, are part of the drill.  But even after the April rally, cryptocurrencies will still offer better value than the average Nasdaq technology stock.

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Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.4 stars on average, based on 64 rated postsJames Waggoner is a veteran Wall Street analyst and hedge fund manager who has spent the past few years researching the fintech possibilities of cryptocurrencies. He has a special passion for writing about the future of crypto.




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Analysis

Ether in Bears’ Hands

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Ether in Bears' Hands

Ether has been doing great over the last few days, but now it’s declining again, trading at around $646, after hitting a 6-week high at $712.43. Over the last session, Ether confirmed at least two bullish trend lines at $665 and $675, which were successfully tested and broken out today. While Ether was above $700 it had some good chances to recover, but now it is quite doubtful.

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The bulls quickly gave up the support at $665 today, and now they need to push the price back to $700. This will be the only chance to hit the $712 high again.

Overall, any price above $675 will help Ether recover, while any price below will make it continue declining. $675 is actually the current resistance, while $712 is another one. $644 is the key support, with a longer term one at $574. The MACD keeps on rising and is in the positives, issuing a buy signal. The Stochastic is, on the contrary, giving a sell signal, despite also being in the positive area.

There wasn’t too much news on Ether over the last few days. Still there was some, and what is worth mentioning is the hack of MyEtherWalet, one of the most popular crypto e-wallets out there. The hackers stole 215 coins, which equals $150,000. The scheme was very simple: the thieves hacked the DNS server and then routed users to a phishing website. The issue was quickly spotted and resolved, but the mere fact the e-wallets are still so much sensitive to hacker attacks is troubling.

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Meanwhile, Massachusetts Institute of Technology has recently published a paper where the scientists analyzed three ways of ‘killing’ Bitcoin. The first one is creating a global Fed based currency, the Fedcoin, that, with the time passing, could eliminate all other cryptos, including BTC. The Bank of Canada actually went this way some time ago, by building a crypto network based on Ethereum. The second way is creating a new crypto based on the largest social networks out there, which could enable pushing out BTC from the market, given the volumes and the number of social media users. Finally, the third way is issuing a large number of cryptos, each designed for a particular purpose. This may also greatly affect the top 10 altcoins, too.

Anyway, the crypto market is still closely watched because of the high degree of anonymity and lack of (or no) regulation.

ETH/USD

Author: Dmitriy Gurkovskiy, Chief Analyst at RoboForex

 

Disclaimer

Any forecasts contained herein are based on the authors’ particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4 stars on average, based on 2 rated postsI have two degrees in Social Psychology and Economy. After graduation I worked as the Head of the Laboratory of Technical and Fundamental Analysis of Financial Markets at The International Institute for Applied Systems Analysis. The experience and skills he gained helped me to realize my potential as an analyst-trader and a portfolio manager in an investment company. At the moment I'm a financial expert, writing for various financial media sources and a Chief Analyst at RoboMarkets.




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Analysis

Pre-Market: Stocks Up Slightly After Plunge but Sellers Clearly in Control

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Global stocks continued the bearish trend that initiated last week, while volatility increased significantly yesterday during the US session. The major US indices plunged by more than 2% and dragged global benchmarks lower as well, so suddenly the correction lows are in sight again. The momentum of the move suggests that we will see at least a test of the lows, as the charts continue to show bearish pressures across the board.

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NASDAQ 100 Futures, 4-Hour Chart Analysis

Today, stock futures have been slightly above the lows from yesterday, but the short-term charts are clearly wounded and any bounce should be treated as a counter-trend move here. While significant new correction lows are not guaranteed here, bulls should wait until a short-term trend change rather than guess the bottom, as the risks of a deep downswing are high.

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US 10-Year Treasury Yield, 4-Hour Chart Analysis

The rising trend in Treasury yields is among the catalysts of the move, as we painted out several times, and with the whole yield curve still drifting higher to new multi-year highs, the short-term trend could continue. European stocks are holding up well compared to their US peers, and the Japanese Nikkei is also relatively strong, and all of that could be attributed to one thing, the Dollar’s strength.

EUR/USD at Make-Or-Break Level

EUR/USD, 4-Hour Chart Analysis

Forex markets are very active these days, as the massive move in yields boosted the Dollar, which has been gaining ground compared to all of the majors. The most-watched EUR/USD pair is just above the March low, very close to hitting a 3-month minimum, with only 30 pips of cushion remaining for bulls.

Dollar Index, 4-Hour Chart Analysis

The trend in the Dollar index suggests a breakdown in the coming period, as the broader measure broke out from a range that has been intact for several months. Of course, a hawkish ECB statement tomorrow could save Euro bulls here, but given the bearish positioning regarding the Dollar, the “pain trade” would probably be a strong Dollar rally.

Commodity currencies continue to trend sharply lower, despite the stability in the price of oil, and as we noted several times, the Australian Dollar and the Canadian Dollar have been reliably leading risk assets in the last couple of months, so this trend doesn’t bode well for equities.

The same goes to the negative reaction of the most-watched quarterly earnings releases (Google parent Alphabet, Caterpillar), so for now, caution is the name of the game for equity investors.

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Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 233 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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