November 25th, 2017 at 1:49 pm UTC · 6 mins read
Caviar has announced that the pre-sale of its ICO will begin on November 28 for its pioneering approach to build a dual-purpose token and crowdfunding platform built on the Ethereum blockchain. Caviar’s token offers access to stable real estate and cryptocurrencies, with built-in downside protection and automatic diversification.
The team behind Caviar has successfully managed a multi-million-dollar real estate debt fund since 2013, and brings years of experience and research to this project. Caviar is powered by Intelligent Predictive Model (IPM), an artificial intelligence algorithm, allowing for stronger predictive power and more effective asset allocation. In addition, Caviar Platform will allow real estate developers to raise funds for their upcoming projects, and for Caviar token holders to earn additional rewards by staking their tokens. Caviar launches its pre-sale on November 28 with the goal of raising $25 million.
Caviar’s team of advisors includes the esteemed blockchain investment expert David Drake, Chairman of LDJ Capital; Ivan Labrie, a top trader on Tradingview.com; James Sowers, ICO Advisor, Angel Investor and Crypto Capitalist; Gabriel Jarrosson, a French entrepreneur, crypto investor and a founder of a private crypto investment group; NASA-recognized inventor and data scientist David Wirth; Mikhail Savchenko, CTO at Chronobank.io; and James Jamil, Executive Director of the Wall Street Blockchain Alliance. Commenting on what differentiates Caviar and their reasons to join, several advisors shared the following:
In a recent Caviar blog post, partner Guy Neumann further explains real estate’s role in Caviar’s diversification strategy. Caviar combines large cap and most stable cryptocurrencies, select new token projects, and real estate, utilizing its’ proprietary Intelligent Predictive Model in order to perfectly time investment decisions.
Caviar is the successor to Caviar Capital, which, in the past five years, successfully financed dozens of redevelopment projects and has a 0% default rate, 0 late payments and an average IRR (internal rate of return) of 16% per year. Since its inception, Caviar Capital has consistently outperformed S&P 500 Real Estate and S&P 500 Bond indices by over 300%.
According to Neumann, Caviar’s team requires borrowers to have demonstrated a history of completing at least three real estate development projects in the past. “We work with seasoned developers, those who take their business seriously and do it full time,” noted Neumann.
One of those established customers is Corey Kosiensky, a Connecticut-based Real Estate Developer and Caviar Capital’s client since 2013, who commented on his experience of working with the team: “It’s been a pleasure working with Caviar’s team for the past 4 years. True professionals, Caviar has been a valued partner, helping my real estate development business expand much faster than I anticipated.”
By combining crypto assets and real estate, Caviar aims to offer a higher rate of return than traditional real estate investments, while maximizing downside protection. In addition, Caviar will provide traditional investors with the financial benefits of a more diversified portfolio that includes digital currencies. In a recently published back-tested study of Caviar’s historical performance, partner Alex Shvayetsky noted that:
“If history were to repeat itself (of course, we cannot guarantee future performance), then based on distributions alone, anyone buying tokens at pre-sale with a 30% discount (token price would be $0.07) would triple their investment within one year. These results are not taking into account any token appreciation, which, based on historical performance and Caviar’s buyback mechanism (future performance is not guaranteed), could be significantly more. And, as impressive as these numbers are, Caviar’s long-term advantage would be even more evident in the bear crypto market. During market downturns, which are inevitable, Caviar would be in a unique position to shift more funds to real estate and still provide returns to investors, as well as exposure to real assets as collateral.”
Although cryptocurrency traders can profit from the volatility of the market, they are offered little in the way of real assets. Caviar provides a unique opportunity for crypto-investors to diversify their portfolio through exposure to real estate.
Caviar’s tokenization approach to investments in real estate, cryptocurrencies and crypto-assets lowers the cost of management, reduces entry costs for investors, and removes the problem of illiquidity associated with traditional real estate investments, as partner Kirill Bensonoff notes in the article “Caviar Token Economics: Liquidity, NAV and Future Growth Explained.”
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