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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

Litecoin Price Analysis: LTC/USD Developers to Slash Transaction Cost, with Upcoming Core Update

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  • Litecoin fees are set to be largely reduced in the forthcoming upgrade, in an attempt to boost adoption.
  • LTC/USD remains heavily dictated by triangular pattern, behavior suggests a breakout is imminent. 

Litecoin Fees to lower by 10x in next Core Release

The Litecoin foundation will be updating the Litecoin protocol to version 0.17, following an announcement via Twitter. This update will ultimately reduce the network’s fees drastically compared to its already nominal costs.

It is reported that with this upcoming upgrade, the network fee will go down to $0.005. Their goal is to encourage greater adoption of Litecoin. Currently, the average transaction fee is floating around $0.05. Bitcoin’s transaction fee is currently seen around $0.10.

At the back end of 2017, a large bull market was observed. Bitcoin prices were up at heights around $20,000. Users as an alternative started to use LTC, given its inexpensive nature, in comparison to Bitcoin. It is interesting to note also that Bitcoin transactions were as much as $55 during those highs. However, Litecoin remained by far competitive, facilitating lower transaction fees, less than $1. During the peak, LTC fees reached $1.5.

Litecoin’s Core lead developer, Adrian Gallagher, was commenting on the upgrade intentions, saying: “To encourage more adoption and usage of Litecoin, I think lowering the fees are a good thing. We’re not even close to block limits and the block size on disk is pretty small (20GB) relative to other coins. Technically people can already adjust their fees right now to the one above, because of the more relaxed min relay/dust relay fee.”

Elsewhere, he was speaking about the current market conditions, believing that the bear market being observed, will not last. Predicting that in the next three to six months, prices could start to rise again. He stated: “With lower fees, it would be possible to lay down the foundation for a fee rate, that can grow proactively rather than re-actively.”

Technical Review – Daily Chart

LTC/USD daily chart

Looking via the daily time frame, LTC/USD price action remains trapped and dictated by a triangular pattern. This is seen across several of the other cryptocurrencies. The calls of an imminent breakout make much sense, with this type of price behavior seen.

Over the past few days, upside has been capped around the $55 mark. Further north, resistance is seen at the $56.50-60, the upper part of the triangular pattern formation. A breakout higher should allow a run well into the $60 territory. Testing the 27th September high ($65.85) would be probable. Supply is seen running from that high up until $70, where the price faltered on 4th September.

In terms of support, $53 has proven to be an area of comfort, over the last five sessions. The lower trend line of the above-mentioned pattern is seen tracking at $51.50. Finally, a demand zone is seen just below running from the big $50 mark, down to $0.47.

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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4.5 stars on average, based on 33 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

Pre-Market Analysis And Chartbook: Chinese Stocks Extend Rally

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Monday Market Snapshot

Asset Current Value Daily Change
S&P 500 2,773 0.22
DAX 30 11,629 0.65%
WTI Crude Oil 69.42 0.07%
GOLD 1,226 -0.28%
Bitcoin 6,406 -0.10%
EUR/USD 1.1513 0.01%

Global stock markets started out the week on a positive note, with Chinese equities surging higher, extending their late-day gains from Friday. European and US indices are not that enthusiastic though, and from a technical standpoint, today’s early rally didn’t change anything yet, with the declining trends in the majority of risk assets being intact. With the economic calendar being empty today, technicals, the EU-Italy debate, and the Khashoggi-assassination will likely be in focus.

Shanghai Composite Index CFD, 4-Hour Chart Analysis

The Shanghai Composite gained the most in two days in over 2 years, with the active help of PBOC, and the benchmark is now testing the previous support that held up Chinese stocks during the bear market. The index broke above one declining trendline and that could open up the way for a larger correction, even if the broader trend is still clearly bearish. The 2700 level could be in the center of attention this week, especially if global markets can also rally following two weeks of turmoil.

S&P 500 Futures, 4-Hour Chart Analysis

US stock futures are broadly higher in European trading, but the momentum of the move is very weak, and the gains of the Asian session are already eroding. From a technical standpoint, the short-term picture is clearly bearish and the charts suggest a test of the lows this week, especially as small-caps continue to underperform and market internals are negative.

Treasury yields are unchanged so far, as Italian assets are up today, and safe haven flows slightly reversed in early trading. The short-end of the yield curve is still very close to its recent highs, and with the European Central Bank’s rate decision on tap this week, we expect further fireworks in bonds, and in turn equities.

Currencies Already Active as Emerging Markets Still in Trouble

EEM (Emerging Markets ETF), 4-Hour Chart Analysis

While the Chinese rally helped equities across the board, other emerging markets lagged on Friday, and despite today’s bounce their technical position still suggests troubles ahead. The EEM ETF is set to open well below the break-out level near 41, and with that, the segment is among the weakest parts of the global market. While the most vulnerable currencies are still performing very well, stocks are seemingly sinking into a grueling bear market.

Elsewhere in currencies, we already saw relatively large moves to start the week, as the EUR/USD rallied up to 1.1550 thanks to the optimism regarding the Italian budget. The most traded pair already sunk back in the red, and the Dollar is higher against most of its peers, reversing some of Friday’s pullback. The Japanese Yen is the weakest so far, due to the Asian risk-on shift, and gold is also lower today as safe-haven assets are struggling.

Copper Futures, 4-Hour Chart Analysis

Besides gold, the key commodities are higher thanks to the Chinese rally, but both crude oil and copper are still below key resistance levels, as technicals are unchanged, so far today. The WTI crude contract is trading below the $70 per barrel level, while copper advanced up to the declining trendline of the consolidation pattern that has been dominating trading in the metal for almost a month.

ChartBook

Major Stock Indices

Nasdaq 100 Futures, 4-Hour Chart Analysis

Dow 30 Futures, 4-Hour Chart Analysis

VIX (US Volatility Index), 4-Hour Chart Analysis

DAX 30 Index CFD, 4-Hour Chart Analysis

FTSE 100 Index CFD, 4-Hour Chart Analysis

EuroStoxx50 Index CFD, 4-Hour Chart Analysis

Nikkei 225 Futures, 4-Hour Chart Analysis

Forex

EUR/USD, 4-Hour Chart Analysis

USD/JPY, 4-Hour Chart Analysis

GBP/USD, 4-Hour Chart Analysis

EUR/GBP, 4-Hour Chart Analysis

AUD/USD, 4-Hour Chart Analysis

Commodities

WTI Crude Oil, 4-Hour Chart Analysis

Gold Futures, 4-Hour Chart Analysis

Featured image from 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 380 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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Analysis

5 Things To Watch Next Week

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An Italian Budget Deal?

EuroStoxx50 Index CFD, 4-Hour Chart Analysis

Outside the European Union, the ongoing debate regarding the Italian budget might be quite perplexing, especially given the strong reaction by financial markets. While the relatively small budget deficit of the country is really violating the rules of the Eurozone, we have seen much larger deviations from the fiscal rules without meaningful consequences.

That said, the sorry state of the Italian financial system, the stealth capital flight from the country, and the structural imbalances of the ECB’s bond purchasing program validate the scrutiny of the EU. Some analysts say that the Italian banking system is outright insolvent, but in any case, deep structural reforms would be necessary, and the real issue behind the debate is the populist anti-EU rhetoric of the new government. With that mind, even if the two sides reach a deal on the budget, which could lead to a strong relief rally in Europe, Italy will likely cause further severe headaches down the road.

Trillions in Market Cap Reporting

Nasdaq 100 Futures, 4-Hour Chart Analysis

The US earnings season is entering its crucial phase, with next week being one of the busiest in this quarter. The Nasdaq will be in the focus throughout the week, but the sheer size of the tech giants reporting means that the whole market could experience wild swings.

The three largest companies Microsoft (MSFT), Amazon (AMZN), and Google parent Alphabet (GOOG), alone represent more than $2 trillion in market value, and Intel (INTC), Verizon (VZ), AT&T (T), Visa (V) are also very important for the US and the global economy.

So far, the quarter surpassed expectations, and should the string of earnings beats continue, it could provide stability to the shaky stock markets. Besides the largest firms, we will keep a close eye on anything China-related, to get authentic information on the real state of the country’s economy.

The European Central Bank Behind the Curve, as Usual…

EUR/USD, 4-Hour Chart Analysis

As global economic growth is clearly slowing, and the Italian worries already caused a widening in the yield spreads between the core and the periphery in the Eurozone, the ECB seems to be way behind the curve with its monetary policies.

Although the tightening the schedule of ECB is very gradual, we could still get a hawkish surprise next week, and that could enter the hall of fame among the disastrous decisions by the central bank. The ECB managed to hike rates in the middle of financial crises before (the summers of 2008 and 2011), and although the Euro’s weakness and the Fed’s tightening steps could give the impression that there is room for a hawkish shift, the macro backdrop suggests otherwise. Look for a strong bounce in the Euro and further weakness in equities, should Draghi & Co. confirm our suspicions.

Will the Chinese Bounce Last?

Shanghai Composite Index CFD, 4-Hour Chart Analysis

2018 for Chinese stocks has been nothing short of disastrous, with the key benchmarks entering deep bear markets, fading all rally attempts so far. With the largest credit bubble in history threatening the country’s financial system, and with Chinese growth being more important than ever for the global economy, what happens in the coming months could be crucial for all investors.

On Friday, one of the lowest (official) GDP prints came out from China, while auto sales also dropped for the first time in decades, suggesting that the stock market could be correct in pricing a hard landing. While the verbal and other forms of intervention lifted stocks before the weekend, should another rally attempt fail, the bear market could enter an accelerating, mainstream phase.

US Midterms Drawing Closer

The Chinese problems are likely not caused, but definitely amplified by the ongoing trade spat with the US, and before the midterm elections in three weeks time, it’s unlikely that we will see easing in the conflict. According to polls and prediction markets, the GOP will likely keep the Senate majority. While the Democrats are still expected to take the House, the Republicans and Trump seem to have the momentum.

As stocks usual suffer in times of political uncertainty, risk assets would likely be better of, at least short-term if the current trends would continue, as A blue House + Senate combination could mean two very stormy years in Washington.

ChartBook

Major Stock Indices

S&P 500 Futures, 4-Hour Chart Analysis

Dow 30 Futures, 4-Hour Chart Analysis

VIX (US Volatility Index), 4-Hour Chart Analysis

DAX 30 Index CFD, 4-Hour Chart Analysis

FTSE 100 Index CFD, 4-Hour Chart Analysis

Nikkei 225 Futures, 4-Hour Chart Analysis

EEM (Emerging Markets ETF), 4-Hour Chart Analysis

Forex

USD/JPY, 4-Hour Chart Analysis

GBP/USD, 4-Hour Chart Analysis

EUR/GBP, 4-Hour Chart Analysis

AUD/USD, 4-Hour Chart Analysis

Commodities

WTI Crude Oil, 4-Hour Chart Analysis

Gold Futures, 4-Hour Chart Analysis

Copper Futures, 4-Hour Chart Analysis

Featured image from 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 380 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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