ICO Review: Cprop.io
ICO's Are Risky: Do your own Research
As great as the growth in 2017 was for the crypto asset market, it makes it all the more difficult to spot the gems from the scams-- and for the most part, there seems to be no in-between. I tend to stay away from ICO’s for this very reason. Speculatively investing in crypto assets is risky enough for me, and in an unregulated market any slightly-above-average Joe can create a whitepaper, a nice Wix website and find a local team of experts. This is why most of my days begin and end with fundamental research on smaller projects ALREADY in the market. The ICO market is riddled with high-hope low-chance projects and most will fail before the market discovers its existence.
I began this document with my personal disclaimer for two reasons. The first is to clarify how dangerous and risky investing in an ICO can be. The second is to highlight the significance of a project like CPROP (Cryptoproperties LLC.)
CPROP: Revolutionizing the Real Estate Transaction
For me, the discovery of a project with as much promise as CPROP revitalizes my excitement for blockchain innovation. My first career path was in real estate and like many market sectors, real estate is plagued with expensive inefficiencies. A simple residential transaction requires multiple intermediaries, laden with associated costs. Communication is fragmented and agents are burdened with the time-consuming task of keeping all involved parties “in the loop.” A homebuyer is probably experiencing the largest purchase of their life and a home seller is usually stressed for time. Both of these experiences can be highly stressful, even emotional. A good agent knows that communication with the client is key to a successful transaction and garners repeat business and referrals. Even after a transaction is complete, an agent and brokerage have the job of keeping a record of all documents for many years. This security of proper documentation had been a long-standing problem and continues to be a major problem in many parts of the world.
A transactional workflow, CPROP’s platform allows total transparency for all parties involved in a real estate transaction. As mentioned before, the traditional process of communication is headed by the agent. All parties rely on the agent to be available and accurate with information. Using the CPROP platform, parties are able to communicate with others involved in the transaction and update information in real time. Documents and participants can be added and edited by permissioned parties. Each active participant understands what needs to be done next to most efficiently complete the transaction. CPROP envisions incorporating smart contract escrows, blockchain-authenticated documents and a host of other features to provide the highest level of security possible. This solution is especially attractive to participants involved in long distance deals, where communication and trust is coveted and rare.
Adam Koehler and the CPROP Team
The co-founder of CPROP, Adam Koehler, revolutionized the way real estate documents were used and managed with the company Dotloop. As an agent of Keller Williams, I had the first-hand experience not only using Dotloop but also seeing the evolution of business practices within real estate teams. For some, the transition from paper documents, to digital, proved to be cumbersome. The old practices were ingrained in many agents and change was somewhat opposed. But for true market professionals, this simple aggregation of required documents, paired with the efficiency of digital signatures, allotted more time for client acquisition. When Zillow purchased Dotloop in 2015 for $108 million in cash, the real estate landscape was changed. According to the CPROP whitepaper, almost half of all residential real estate transactions in the United States utilize the Dotloop platform. An astonishing statistic that shows just how innovative the Dotloop platform was for the common residential real estate transaction.
Adam, along with co-founders Sandy Selman and Luke Sistito, is back and ready to revolutionize the real estate landscape once again. This time his project aims to eliminate some of the largest inefﬁciencies associated with residential real estate transactions.
“CPROP’s initial product is a blockchain-powered real estate transaction management system designed to integrate into any existing property portal or brokerage company website to allow the buyer, seller, and their respective service providers (e.g., real estate agents, lawyers, inspectors, etc.) to transparently and securely close the deal.”
The CPROP token
On June 21st of this year, the ICO began and will be running until July 10th. 4,600,000,000 tokens out of the total 6,130,000,000 will be available for purchase during the token sale with a price tag of $0.01 per token. The hard cap is set at $20 million and although US investors are not allowed to participate, I see no issue with them raising that amount of capital quickly. CPROP's relationship with investors in the Asian market has grown strong as they've searched for capital outside of the states. At one cent a piece, CPROP is valuing the ecosystem at $63,000,000 which is a fair valuation in my opinion.
Tokens will be bought by 3rd party service providers for membership fees for the platform. Buyers or Sellers using the platform will not be required to purchase the tokens. In fact, Buyers will be incentivized with CPROP tokens to complete reviews of 3rd party service providers that were used. This incentive structure allows for a self-curated list on the platform, meaning those who wish to use service providers from an unfamiliar area have the ability to make an educated decision about which provider to use. Buyers receiving the tokens as an incentive will be able to hold the coins in hopes of appreciation, sell them on an exchange, or use them with retail partners for discounted goods. Up to 80% of tokens that are received by CPROP for membership fees will be burned (capped at 20% of total supply.) As the use of the platform increases from buyers, the demand will increase for CPROP tokens, as service providers will be more interested in advertising their services on the platform. This structure rewards those who hold CPROP tokens: the supply steadily decreases over time as demand increases making each unit of account more valuable. This inverse relationship can prove profitable for token holders.
CPROP Partnerships: Property Portals and Brokerages
An add-value to the portals, CPROP will offer a distant plug-in product that will add a new revenue source and brand differentiation. The portals will offer the CPROP plug-in instant exposure to a high number of possible clients. This mutually beneficial relationship leads me to the conclusion that CPROP has a real opportunity to partner with high-profile companies and portals. As a possible investor, this easy path to market exposure adds more upside potential for any position taken.
Like many ICO’s, investing this early in a project is extremely risky and should only be done after personal research and due diligence of information provided. However, this project seems to check every box on my person rubric for assessing possible crypto gems. The team is experienced, professional and passionate. The market sector involving this project is the largest in the entire world. The acknowledged inefficiencies are real and costly; and the solutions offered by CPROP are realistic, efficient and cost-effective. The token model makes sense and burning the coins justifies the relatively large supply. The website is both professional and easy to traverse, as well as the actual plug-in product. From top to bottom, Cryptoproperties LLC is a platform positioned for success.