Make way for a new cryptocurrency: Property Coin is being touted as the first real estate-backed digital currency.
Aperture Real Estate Ventures, a Los Angeles–based real estate technology and investment firm, plans to launch the cryptocurrency at the end of February. Until then, the company is giving investors an “opportunity to own a professionally managed portfolio of real estate assets via the blockchain.”
The creators are presenting Property Coin as an alternative to the volatility of bitcoin and other cryptocurrencies on the market. Sale proceeds from Property Coin will go toward growing Aperture’s real estate investment business, which uses proprietary technologies to spot and then invest in undervalued properties in metro areas across the U.S.
“Unlike many cryptocurrency offerings, Property Coin’s proposition is straightforward,” says Andrew Jewett, co-CEO of Aperture. “One hundred percent of the net proceeds from sales of Property Coins will be used to invest in properties and loans identified by our proprietary software and our experienced team. Accordingly, Property Coin is designed to be 100 percent backed by real estate assets, giving each coin holder a fractional economic interest in the investments made by Aperture or its affiliates with the net proceeds realized from the sale of Property Coins.”
Each Property Coin holder “owns a fractionalized piece of assets owned by that entity, and as we reinvest profits into property, the underlying value will go up.”
Property Coin is built on Ethereum, a blockchain platform, which is second to bitcoin worldwide.
Property Coin will sell for $50 per coin at its initial offering on Feb. 26. U.S. investors must purchase a minimum of $1,000 worth of coins.
Property Coin will be focused on the U.S. real estate market initially, but it will be available for purchase to investors from around the world.
Source: Aperture
