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ICO Analysis: Real.markets

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Cryptocurrency projects which seek to tokenize real assets are going to run into the problem of rights enforcement. Operating outside of the long arm of the law means you don’t always have full access to its useful aspects, either, and so fraud may ensue. This is a drawback for all crypto assets which try to bridge the divide between the digital and the real. So while we must be cognizant of that, we don’t want to miss out on good opportunities, either.

Real.markets notes in their whitepaper that current real estate investment schemes are rife with inefficiencies, but the truth of the matter is that the same can be said for many blockchain designs and implementations. Nevertheless, no points off for trying to present yourself as the solution to the alleged problem.

Real estate does remain a great long-term investment, location dependent, of course. There are places you could have invested in 10 years ago for much more than you can buy or sell them for today. It’s all relative, and a truly revolutionary product would work on cutting through the misinformation about things. According to a report from Forbes earlier in the year, the following are true of real estate:

  • Home prices will slowly rise.
  • Mortgage market will make ownership harder to attain, so those who already own will be better positioned.
  • Upcoming generations may have better credit opportunities.

A full-fledged, down-to-the-splinter-of-wood inspection of the property in question, with a copious amount of photographs to complement it, that would be the kind of thing the masses would flock to. Especially if that were only one feature of such a platform. When such a thing arises, we’ll certainly be interested in what its token might be able to do for us.

But let’s see what we’re offered in Real.markets.

Real Estate has been historically considered the best way to preserve wealth. However, Real Estate investments today present significant inefficiencies such as lack of efficiency and liquidity. […] REAL (Real Estate Asset Ledger) team is applying Blockchain technologies to the world of Real Estate investments in order to solve those issues. REAL is an Ethereum Smart-Contracts governed ecosystem that focuses on creating the best conditions for Real Estate investment eliminating costs due to unnecessary intermediaries, providing transparency and liquidity, alleviating tax inefficiencies and easing cross-border transactions under a unified crowdfunding platform.

REAL (Real Estate Asset Ledger) is a new Ethereum Smart-Contracts governed ecosystem that applies Blockchain technologies to the enormous Real Estate investment industry, giving greater access to global investment in Real Estate, lowering barriers to entry, and increasing market liquidity. […] It will offer an effective method of investing and securing the value of the existing +100 Billion USD equivalent in cryptocurrency into the less volatile and growing Real Estate market by generating rental income and value appreciation. […] REAL Founders have invested USD 350.000 in the company […]

So far it’s all still a bit too vague. It would seem sensible to stop reading the thing, if it were the author’s money. You should be able to tell me what you want to do with my money within the first couple of sentences. Just tell me what you want, and what I get, and we can play ball. If we agree there is a problem, let’s solve it together. We’ll both profit. But this is not how many ICOs are approaching business. Instead, things must be a bit confusing.

Several pages pass. We still don’t know what we’re actually getting into. Just “blockchain applied to real estate.” On page 5, we get the meat of the thing, and probably the main problem.

On our Crowdfunding site, users will be able to exchange REAL Tokens for economic rights of a property and will be backed by physical Real Estate. Our users will also be able to trade their investments at our platform, turning Real Estate investments into liquid investments.

Full stop, we can see a problem with this. You’re just some people with a tech company. You’re not a government with guns you can use to enforce anything at all. Even if you have wizardry in the technical sense, you’re going to need banks on board.

That’s going to take time and money. “Rights enforcement” is a red herring like no other. It’s not something the author wants his money in, nor does he think many want to try their hand at that. In fact, it’s probably not something private entities should overtly try playing around with at this point in time. It relies on government acquiescence to essentially non-regulated markets, and agreement to enforce rights contracts drawn up on the same.

On page 6, we learn that:

REAL will earn a 10% commission fee on all income or value appreciation profits from investments made through the platform. For example, if a property participation generates 100 ETH in profits, REAL platform will keep 10 ETH and pay 90 ETH to the investor.

One has to wonder if existing real estate investment firms, which have none of the problems of actual enforcement that REAL will face, cannot simply do better than 10%. People are free to invest their dividends into cryptocurrency if they want to, after all. It may be that this product is too early, or just not serious enough to get the job done. One way or another, this whole risk of “rights enforcement” is just too large to give a pass. One cannot simply overlook such a thing.

REAL Token

Hard to believe at this stage of the ICO boom we’re being presented with such low quality offerings, but here we are:

Real Tokens are a digital representation of a participation entry ticket for our crowdfunding site. They are divisible until 0.000000000000000001 REAL (1/1.000.000.000.000.000.000 REAL). Real Tokens are minted via a Token Sale Smart Contract and can be held in any Ethereum ERC20 compatible Wallet.

The old “spread the risk among millions and millions of people are just a little exposed” idea. The one that tanked the global economy by putting toxic assets in with okay assets. From a traditional perspective, literally nothing that could be offered on Real.markets will actually be far from toxic. When not toxic, they still carry an element of danger. If you need a real estate play in the cryptosphere, Rex at least has the rational idea of disrupting the listings racket. That is something that doesn’t interfere with the government’s ongoing dominance in various parts of people’s lives.

REAL Tokens will be tradable outside REAL platform, as they are an ERC20 Token so they will have an inherent value in the exchanges. Users will also be able to use REAL Tokens for acquiring real estate economic participations at our crowdfunding platform.

This author has never seen a weaker value proposition. We don’t even need to look at their “stellar team” to know this is a load of bad investment in ICO clothing.

REAL Verdict

Nope, nope, nope. Checks all the boxes for ill-prepared, ill-informed, and likely to fail. “Inherent value” at exchanges? Indeed, of precisely next to nothing. If people are going to begin using platforms to swap property, one suspects that some of the old school big boys will get in on the action and simply blockchain their current business. There are plenty of Wall Street firms thirsty, looking at the cryptocurrency boom with envy.

We recommend serious caution for any ICO that proports to “enforce rights.” Make no mistake, if rights are enforced, it is done by the government. And cryptocurrencies are simply not suited for the functions of government, at present time, although by design they can eventually be so.

Risk

  • Scammer’s paradise. -4
  • Questionable token value, massive supply. -4

Growth Potential

  • Disruption of property will be big. +3
  • Hype around this ICO is huge. +3
  • Despite their disconnect with the reality of “rights enforcement,” the team seem to have done a good job building significant momentum. +3
  • They are running their ICO through Bitcoin Suisse and have contracted with some significant advisors. While this does not inspire extreme confidence in the actual idea, it does mean that the token is a bit better for speculating on. +2

Disposition

We are giving Real.markets a 4.0 based on our current outlook on such tokenization schemes. We believe they are ill-fated unless they find more interesting ways of “enforcing rights.” Until that is up front and obvious, we have to assess that these things are probably low-performers where both short and long-term where our readers could be earning real returns elsewhere. We will of course return to the matter when some of these tokenized asset ICOs have been on the market awhile, assessing the best performers at that point, if there are any, and modifying our ratings for the purpose.

Investment Details

Investment begins August 31st. Visit https://www.real.markets/ and follow directions carefully. Be sure to research “real.markets scam” around that time to avoid any scams that may arise, as well, and make all decisions for yourself.

 

 

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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5 Comments

5 Comments

  1. Inverstor Clouseau

    August 31, 2017 at 12:27 am

    Thank you, I read their whitepaper and did not consider a lot of this. I requested you cover this coin and you did, I really appreciate that. I’ve done my own research and your analysis adds a lot. This is why I am subscribed.

  2. horselditty

    August 31, 2017 at 6:14 am

    Do you think it would be a good coin to flip? Considering the hype that is.

  3. cryptonoob

    August 31, 2017 at 11:34 am

    I would not take the risk.
    As the author said , there are a lot of other opportunities at the moment with which you will sleep better at night.

  4. HITBTC

    August 31, 2017 at 8:20 pm

    For me is a great project. can create a Real Market in realestate by cryptocurrency.

  5. jagrmeister

    September 11, 2017 at 10:02 am

    I share your concern about the vagueness of the solution proposed. A lot of critical questions unanswered. I have now seen this with a few different ICO’s — all in real estate. It’s as if they think “Crypto is big, Real Estate is big- so if they’re offered together….”. And their line of thinking stops there. Thanks for the writeup; it confirmed my suspicions. I had thought about buying just to flip, but now I’m not going to bother. Maybe it will spike post-ICO, but it’s not worth the risk.

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Altcoins

Monero Price Analysis: The Choice of Cyber Criminals, XMR/USD is Vulnerable to Full Reversal

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  • Monero price on Thursday was hit with steep losses, dropping as much as 5% in the session.
  • Trend Micro, a security intelligence firm, finds a Monero hacking tool for installing mining malware.

XMR/USD: Recent Price Behavior

Monero’s XMR price has been cooling over the last day, having dropped around 5% at the time of writing on Thursday. The move south comes after a decent run higher over the past couple of weeks. XMR/USD jumped almost 30% from 7th February up to 19th February, before easing away from the high print. The price did manage to hit its highest level seen since 10th January.

Security Intelligence Identifies Monero Hacking Tool

Researchers at Trend Micro, a security intelligence firm, have detailed that there is a notable surge in a Monero hack-tool installation. It reportedly attempts to exploit a vulnerability seen on Windows SMB, which has been patched up since 2017. Organizations in mainland China, Hong Kong, Taiwan and Italy are said to be the ones targeted, according to the researchers.

The blog published via Trend Micro details that the tool seems to be a merger of existing threats. In particular, it has targeted Microsoft Windows users – MIMIKATZ and RADMIN. As per Trend Micro:

“Between the last week of January to February, we noticed an increase in hack tool installation attempts. That dropped seemingly random files into the Windows directory. Initially appearing unrelated, the analysis showed the final payload to be a Monero cryptocurrency-mining malware variant. It scans for open port 445 and exploits a Windows SMB Server Vulnerability MS17-010 (patched in 2017) for its infection and propagation routines.”

The research does not come as much of a surprise, given the raft of Monero mining malware threats seen over the past year. Cyber criminals have strong favor for the altcoin given its privacy and anonymity, in addition to the ease of mining it on devices as simple as laptops and smartphones.

Technical Review – XMR/USD

XMR/USD daily chart.

Given the current edging south, eyes are now on the next area of support, which can be seen below at the prior acting range-block formation. XMR/USD between 11th Jan to 8th February was moving within a narrowing daily range. The area above this is now acting as support, as seen between 10-17th February. This came into play after a breakout and retest of the breached block. In terms of the comfort area, it is seen tracking from $47.50 down to $42.00. The bear pressure may prove to be too much for the support and force a breach. Another potential retest of the low down at $38.80 could be called into action.

Lastly, resistance to the upside is observed from the $53-$60 price range, which is the near-term supply and high area from 24th December to early January 2019. Further north, there can also be a chunky barrier seen ahead of the psychological $100 mark, tracking from $75-$95 range.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

 

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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4.6 stars on average, based on 126 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Analysis

Crypto Update: Litecoin Leads Pullback in Majors

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The major cryptocurrencies are all lower today following the test of the recent swing highs. Yesterday, the early leader of the current short-term uptrend, Litecoin hit the key $51 resistance, and today the coin pulled back sharply, triggering a broad correction in the segment. The leaders of the rally are all notably lower, but they are still holding on to the bulk of their recent gains, and the rising short-term trendlines are all intact.

From a short-term technical perspective, the current pullback is orderly, and as the coins clear the overbought momentum readings, traders could re-enter smaller, speculative positions with strict risk management rules. The long-term technical picture continues to warrant caution, and bear market rules still apply despite the consolidation of the recent months.

LTC/USD, 4-Hour Chart Analysis

Litecoin’s performance continues to be an important tell for the whole segment, and after yesterday’s downgrade in our trend model, the coin’s pullback is weighing on the whole market today. That said, volume patterns and price action in general, are still in line with a short-term uptrend, and traders could be looking for re-entry points and the overbought momentum readings get cleared.

The key $51 resistance level, which halted yesterday’s move, could be in focus again in the coming days, while a deeper correction could see the test of the $44 level. For now, our trend model remains on a neutral short-term signal, while the long-term signal is still clearly negative, with further support levels found near $44 and $38, and with strong resistance also ahead near the $56 level.

BTC/USD, 4-Hour Chart Analysis

Bitcoin remained within its short-term consolidation pattern, as the $3850 level provided support, so far, during the broad pullback in the segment. The MACD indicator is now pointing to an ongoing short-term correction, but the relatively weak short-term uptrend is still clearly intact.

Traders could hold on to their positions here despite the pullback, as the momentum indicators haven’t reached extreme overbought levels, leaving our trend model on a short-term buy signal, but we would with entering new positions until the pullback runs its course. While the long-term technical outlook is clearly negative for BTC here, a move above the key $4000-$4050 zone could lead to a test of the next major zone near $4450, while support below $3850 is still found near $3600 and just above $3450.

Ethereum and EOS Remain Stable as Ripple Fails to Show Strength

ETH/USD, 4-Hour Chart Analysis

Ethereum continues to trade in a bullish short-term correction pattern near the $145 resistance level. The uptrend is clearly intact in the coin, and although the short-term momentum indicators continue to show overbought readings the rally could soon continue, with the $160 price level still being in sight. Support levels are still found near $130 and $112, while the next major resistance zone is found near $180, and the long-term downtrend is still in no danger here.

EOS/USD, 4-Hour Chart Analysis

EOS, which has also been among the leaders of the rally, continue to show stability amid today’s pullback, but as it got severely overbought during the recent upswing, our tend model is on a neutral signal. Traders should wait for the correction to run its course before re-entering their positions, since the long-term setup in EOS still warrants caution. Support is found near the current price level at $3.80, at $350 and near $3, while resistance is now ahead near $4 and $4.50.

XRP/USDT, 4-Hour Chart Analysis

Ripple remains the primary concern for bulls here, as the relatively weak coin failed to show signs of stability falling back to the vicinity of the $0.32 level. The coin got stuck below the dominant bearish short-term trendline, and our trend model is now on a short-term sell signal, despite the broad rally in the segment.

With the long-term technicals still being hostile even in the case of a new swing low in the coming week, traders should remain cautious with XRP and focus on the stronger currencies with regards to trading positions. Below $0.32, further support zones are found near $0.30, $0.28, and $0.26, while short-term targets are still ahead near $0.3550, and $$0.3750.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

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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4.7 stars on average, based on 469 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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Altcoins

Stellar Price Analysis: XLM/USD Bulls Run into Resistance and Profit Taking Following IBM Boost

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  • Stellar’s XLM price was seen cooling in the session on Thursday, as the bulls ran into a barrier of resistance.
  • IBM detailed it has several letters of intent from banks to leverage IBM-Stellar technology.

Stellar’s XLM price has managed to pick itself up from the recent low area, where it was moving within the total abyss. The decent falling for XLM/USD was pushing it into totally unknown territory, where the price has not traded before. A low was produced down at $0.07330000 before the bulls kick-started the recovery. It has now gained a chunky 30% over the last two weeks, with upside momentum particularly gathering decent pace in the past four sessions.

The most recent jump north came following the price escaping a nine-session range-block formation. The low of the mentioned range was observed down at $0.07590000, with the high up at $0.08330000; the bulls forced a breach of this level on 18th February. Upon the move above, a fresh wave of buying pressure came into play, with XLM/USD moving to its highest level in almost four weeks. At the time of writing a pullback can be observed, which could be potential profit-taking after the decent run.

Several Banks to Join IBM’s Stellar-based Service

According to a representative from IBM, several confirmations have been received from banks on their intent to incorporate digital assets, including their own stablecoins via IBM World Wire and Stellar. The head of Blockchain at IBM Jesse Lund said:

“We’ve got a launch announcement coming out soon. We’re going to be supporting more than 50 countries out of the gate, 30-40 currencies, and enough market makers to drag along 30 or 40 banks. So we’ll have a significant portion of the world covered. Our goal is to continue to expand that network and to provide global coverage within 3-5 years where you can actually send remittances in a consistent way, immediately, at a very low cost, from anywhere in the world to anywhere in the world.”

Several banks have confirmed their plans to release digital assets, including their own stablecoins, based on IBM World Wire and Stellar. According to the IBM representative, the company has already received several letters of intent from a number of banks around the world.

Technical Review – XLM/USD

XLM/USD daily chart.

Given the recent price cooling, eyes will be on a possible return down to the breached range-block area. A move as described would complete the technical breakout and retest of the mentioned zone. Should this fail to provide necessary comfort to the falling price, then eyes will be on another test of the low, $0.07330000. If a further breach is observed here, then this opens the door once again to a move within an unknown territory, moving within the abyss.

Looking to the upside, if XLM/USD completes the break retest scenario and the bulls capitalize on this, then a decent push back north may be seen. A near-term supply area tracks above from around $0.09350000 up to $0.0980000. Should the bulls force a break above the mentioned supply, then a retest of the 2019 high area would be eyed. In other words, a move back within the range of $0.13-0.1400000.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

 Featured image courtesy of Shutterstock.

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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4.6 stars on average, based on 126 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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