At the beginning of the last century, with the exponential growth of the global population and the acceleration of urbanization trends, the global real estate industry gradually entered a period of explosive development and dividends. On the one hand, the surge in population and the acceleration of urbanization have gradually created a strong demand for residential and commercial real estate. On the other hand, the rapid development of the global economy has given more and more investors confidence in the development of the real estate field. A large number of Capital flows into the real estate sector and spawns rounds of real estate investment booms.
As an investment product, real estate itself has certain special characteristics. Real estate itself is a high-value commodity, and the real estate is basically sold as a complete set and cannot be divided. This has a very high financial threshold for direct investors in real estate. At the same time, the property is delivered immediately after purchase, and the homeowner holder may need to continue to pay property fees, insurance premiums, management fees, etc.
On the other hand, as the number of real estate properties around the world soars, the real estate field has gradually transformed from a seller's market to a buyer's market. With oversupply, the liquidity of real estate has also declined. Especially in previous rounds of financial crises, as well as the frequent occurrence of global black swan events including COVID-19, which have continued to impact the development of the global economy, confidence in the real estate market has been continuously hit. Therefore, for direct investors, it is difficult to withdraw from investment in real estate.
In order to further lower the threshold for investors to enter the real estate market and to attract more long-tail funds to enter this field, real estate securitization has high hopes. In fact, the concept of real estate securitization dates back to the 1950s and 1960s, when the U.S. government took some initial steps to encourage lenders to pool mortgages into debt securities. This provided a basis for subsequent real estate securitization.
In the early 1970s, the U.S. government created two government-backed agencies, Freddie Mac and Fannie Mae, to buy, guarantee, and repackage mortgage loans, turning them into Tradeable debt securities, a move that fueled growth in the housing market and the development of the mortgage market. Over the next decade, the market for mortgage debt securities experienced rapid growth as financial institutions began to pool mortgages into debt securities on a large scale and sell them to investors, thereby providing more funds to originate new mortgage loans.
Over time, financial institutions and market participants have launched various real estate securitization products, including mortgage-backed securities (MBS), commercial real estate securities (CMBS), and housing asset-backed securities (ABS). These new products create a diversification of securities across different types of real estate assets.
The purpose of real estate securitization is usually to expand the scale of market funds, but there are still some problems.
To put it simply, real estate bonds are usually issued by government agencies or financial institutions. The centralized issuance method means that the issuance and circulation of real estate bonds are non-transparent, and there is a serious information gap, making it difficult for investors to assess potential risks. At the same time, real estate bond products usually lack a certain degree of breadth and are generally only open to regional users or even specific groups. In addition, real estate bond products are usually a type of financial derivatives and an extension of other mainstream financial investment products. Therefore, they often lack flexibility in product form, and the returns of these products have generally been low in recent years.
ESTATEX’s attempt to convert real estate into RWA
1. New trends in RWA
With the continuous development of blockchain technology and the encryption industry, real-world-assets (RWAs) are becoming a new industry narrative. Based on the blockchain, traditional real-world assets can improve efficiency, increase transparency, optimize liquidity management and many other benefits.
Of course, real asset tokenization (RWA) is not a new concept. A series of U.S. dollar stablecoins such as USDT, USDC, and DAI are the earliest RWA concept assets in the industry. These assets use U.S. dollars as the basis of their value through different credit mechanisms. , mapping its value to the chain and embodying it in the form of cryptocurrency, which can be considered the earliest RWA practice.
U.S. debt is an area with good development momentum. Since January this year, the market value and daily issuance volume of U.S. Treasury bond RWA Token have steadily increased. Its total RWA asset value is currently nearly $700M. At the same time, this new way of presenting U.S. debt has attracted A large number of investors came to "try new things".
Of course, in addition to stablecoins, U.S. bonds, etc., the tokenization of real estate and traditional financial instruments (TradFi) is also a huge market. This huge market has attracted many players, such as startups, governments, and financial institutions, all of which are exploring the tokenization market for real estate and traditional financial instruments (TradFi). Tokenization can give greater flexibility in transaction size, transaction timeframe and transaction process in real estate or traditional financial instruments (TradFi). In addition, the native characteristics of blockchain, such as programmability, immutability and composability, will give RWA a new paradigm for tokenization, which is especially expected to allow the real estate economy to explore in a broader direction.
ESTATEX is one of the explorers and practitioners of real estate RWA. It is establishing a real estate tokenization market based on blockchain and driving the operation of the system through a relatively innovative economic model. This project hopes to help the real estate field capture funds more broadly in this new way and explore the development potential of the real estate market in a deeper way. In this process, ESTATEX hopes to allow everyone to become an investor in the real estate market with a low threshold and obtain considerable benefits from the new real estate business field.
2. ESTATEX Real Estate RWA
ESTATEX builds a real estate market protocol based on blockchain technology, which can realize the tokenization of real estate market ownership, that is, RWA. That is, when the property is put on the chain through ESTATEX, the ownership will be unique in the form of $PROPX (the asset method of NFT) assets. Confirmation of title, holding the asset means having ownership of the property.
The ESTATEX ecosystem provides a complete set of end-to-end investment services, providing investors with all the tools needed to invest, manage, leverage, spend and build a real estate portfolio. Starting capital on the investor side is only $100, as an on-chain facility ESTATEX Allowing investors to conduct relevant transactions anytime, anywhere provides a wide range of income opportunities for real estate portfolio owners, retail investors and institutional investors.
The ESTATEX system includes many sectors including transactions, loans, payments, and education, and provides a series of solutions around real estate transactions on the chain.
LaunchX and PROPX Change are two important hubs for the issuance and trading of real estate assets on ESTATEX. LaunchX is a real estate asset sales market on a new chain. Investors can conduct new transactions of new $PROPX assets on LaunchX (similar to the primary market) and provide real asset guarantees.
Judging from the ways to obtain ESTATEX housing, there are three ways: purchasing properties directly from real estate companies, purchasing from third parties, and cooperating with developer funds. And prior to purchase, ESTATEX will provide a comprehensive property valuation and analysis report, issuing a key scoring matrix for evaluating properties. This will include a wide range of factors including, but not limited to, real estate price trends, occupancy rates, popularity of the area, etc., and upon passing the assessment, the $PROPX asset will be issued in a compliant manner.
After the sale is completed, PROPX Change plays the role of a secondary trading market, serving as a trading hub for real estate assets $PROPX. It allows any user to buy or sell real estate assets through PROPX Change in a permissionless manner, giving these assets potential fluidity. When $PROPX is traded, it will be settled with $ESX, the circulating token of the ESTATEX ecosystem. When a user purchases $PROPX assets, it means owning a property or part of it, and ESTATEX will assume the actual management and maintenance of the property.
CapitalX is the loan part of ESTATEX. It can provide investors with instant and permission-free loans without credit review, document review, etc. Users can mortgage real estate assets in exchange for certain funds for investment, etc., aiming to provide a place that often lacks Liquid markets provide funding.
ESTATEX has also launched a payment component, EstateX Pay, which allows users to directly use physical and virtual payment cards to pay for daily commodities and services in ESTATEX, and serves as a gateway for $ESX, $PROPX assets and fiat currency exchange. EstateX Pay is driving more An entry point for users to earn passive income from the Web3 real estate market. In addition, ESTATEX has also launched the ESTATEX University section, hoping to further help investors manage their finances, help them understand the difference between assets and liabilities, and establish a new investment outlook and values.
Based on the above components, ESTATEX will further expand its rich profit methods and capabilities.
3. Compliance Progress
Currently, ESTATEX has obtained the ECSP license in Luxembourg and signed a series of cooperation agreements. Through the cooperation agreement, ESTATEX has obtained 4 licenses issued by the German Financial Supervisory Authority (BaFin), including real estate broker license, custodian license, real estate registration license, and electronic currency license.
Based on these licenses issued by European regulatory authorities, ESTATEX is able to legally conduct business throughout the European Economic Area and the scope of compliant business includes the entire European Economic Area. At the same time, ESTATEX can be sold to everyone worldwide (excluding restricted countries). Currently, ESTATEX is looking to expand compliance to the United States and gradually obtain full judicial approval globally, looking to make EstateX the most complete, compliant and widely used tokenization platform on the market.
4. Economic Model
ESTATEX includes two crypto assets, the $PROPX and $ESX assets mentioned above.
$PROPX assets represent fractional ownership of real estate investments, holding means holding ownership or fractional ownership of the corresponding real property, and a limited number of corresponding $PROPX tokens are issued for each property. The entire process of $PROPX issuance will be fully supervised by multiple financial regulatory agencies in Europe to ensure security and compliance at all times.
ESTATEX has established a series of issuance and trading facilities for $PROPX assets, and users can easily buy and sell from the EstateX primary and secondary markets. At the same time, $PROPX asset holders can also collect the rent generated by the property in the form of $ESX tokens every day, and can obtain derivative income in the form of securities (ESTATEX income and profit sharing, etc.), as well as immediate, License-free loan services and more.
$ESX is a practical asset in the ESTATEX ecosystem. This asset is one of the main payment methods for purchasing $PROPX. It can be used to purchase $PROPX assets, and a series of income methods in the ecosystem, including rent income, will be based on $ESX assets. form presentation. At the same time, $ESX is also the economic currency that promotes the self-motivation of Estatex ecology. Holders will obtain a series of ecological rights, including exclusive use rights of high-quality real estate, DAO governance voting, submitting real estate projects, participating in community meetings, exclusive ESTATEX University courses, and purchasing real estate. discounts etc.
The total supply of $ESX assets is 6.3 billion. ESTATEX is trying to create a tight economic model for it by establishing rigid demand through a series of means. The asset will be circulated online on the external CEX platform.
Therefore, in general, investors can obtain a series of passive income from the ecosystem based on ESTATEX's series of facilities, including rental income, expected income from the rise of $ESX with rigid demand, and profit sharing of income income, etc.
It is understood that currently 80% of $ESX investors have pledged more than 80% of their $ESX assets, and the average pledge period exceeds 7 years, which also means that 50% of $ESX assets will be pledged for a long time.
Therefore, overall, ESTATEX is tolerant to individual investors, real estate developers, property owners and investment institutions, and this brand-new real estate investment method, compared with direct investment, trusts, private equity funds and real estate funds, etc. All have excellent advantages.
ESTATEX recently launched several rounds of token sales to the market, which attracted great attention in the market. ESTATEX has raised more than $2.9M in this market activity, which is the largest amount of funds raised in the IEO market in 2023. One of the projects.
4. Team
Thomas O'Neill - Chief Executive Officer
Thomas Onel is one of the two co-founders of EstateX.
Over the past 2.5 years, they have been working to bring the EstateX vision to life, raising nearly $2 million from the pre-sale community. Thomas first started researching Bitcoin in 2014, which sparked his interest in cryptocurrencies and blockchain technology. He made his first cryptocurrency investment in 2015 and learned some valuable lessons about market crashes, changing landscapes, and trend monitoring. While studying for a degree in Natural Sciences and Innovation Management, he co-founded EstateX with Bart de Bruijn in early 2020. This was inspired by first-hand discovery of inefficiencies in the real estate market and understanding how linking blockchain technology to the real estate market can provide a range of solutions. After investing significant time and money in validating and developing its concept, it is now creating a new ecosystem of solutions for the financial and real estate industries.
Bart DeBruin – Chief Operating Officer
Bart de Bruijn is the other co-founder of EstateX. They worked with Thomas for over 2.5 years to bring the vision and technology to life, raising nearly $2 million from the retail investor community.
In 2017, Bart attended a 3-year paralegal studies course through which he gained an in-depth understanding of the legal framework and developed relationships with many attorneys. Since 2018, Bart has been running multiple e-commerce businesses with continued success. He found his passion and what he wanted to do: start a business. In addition to the financial rewards, Bart has learned a lot from the experience of running a business, sourcing products, importing laws, distribution, marketing, listings, storage, sales and online store operations. Also in 2018, Bart began to get more involved in the cryptocurrency space, making his first Bitcoin investment that year. Understanding the potential game-changing benefits of the financial industry, he began exploring opportunities. In early 2020, he founded EstateX together with Thomas Onel after identifying inefficiencies in the real estate market and the benefits and solutions that would come from connecting them with blockchain technology. In 2020, Bart began studying for a University BA in Entrepreneurship and Innovation and secured support for the launch of EstateX. Bart is committed to harnessing the power of cryptocurrencies as a tool to realize the possibilities of high liquidity, with the goal of empowering individuals and enabling people to achieve financial freedom.
Beckfordhuss – Marketing and Business Development
Beckfordhuss is an established international marketing company with a proven track record in the blockchain space. Joining EstateX following the success of their recent crypto project, a virtual reality blockchain-based metaverse, they handle branding, marketing, visibility, hype building and business development. The token achieved over 170x in its IEO, growing its market cap from $2 million to over $300 million!
They have an in-house team of over 20 employees and have grown social communities across multiple platforms with hundreds of thousands of active investors, cryptocurrency enthusiasts, and project fans. The team is led by award-winning entrepreneurs who have successfully invented and brought to market a range of products, brands and technologies that have achieved international success, selling millions of products in more than 50 countries around the world. They have extensive experience selling to investors and end consumers, and can transform the most complex concepts into clear, concise and compelling brand messages that drive revenue. In addition to marketing, the management team has a wealth of skills and experience that will take EstateX to the next level of success! This includes a background in HSBC Stockbroking with a strong foundation in market analysis and operations, experience working in the luxury residential and central London commercial property markets, and being a pioneer in the development of SaaS technology.
Beckfordhuss has an enviable portfolio of high-profile contacts across industries, managing relationships with celebrities, TV personalities, top sports players, brand ambassadors and affiliates. Responsible for closing the second-largest deal in Groupon history globally, Beckfordhuss has extensive experience in corporate negotiations and closing 7-figure deals. Additionally, they are experienced in raising investments and serving as strategic business development functions for multiple organizations, leveraging their knowledge, expertise and connections to take clients to the next level. Beckfordhuss' Distribution, Commodities and Capital Investments arm works directly with hedge funds, listed companies, pension funds, governments, family offices and ultra-high net worth individuals, facilitating commodity trading as well as various off-market landmarks in central London, Dubai, Dubai and beyond Sales of sexual construction developments. Western Europe and more...
Klaus Kanin - Blockchain
Claus is one of the pioneers in the commercialization of artificial intelligence technology in the North Jutland ICT cluster.
Holds a Ph.D. He holds a PhD in Statistics/Computer Science and became CEO of Dezide in 2001. Dezide is a provider of AI-based diagnostic and troubleshooting software. He has performed this role for over 13 years. In 2014, he became the founder of Sales on Tap and CS Consult. Here, he serves as a mentor and advisor to emerging IT and research-based companies. In 2017, Krause became COO of VentureFusion, a cryptographic security ecosystem for startup creation and growth.
That was before he founded DigiShares and really made a splash in the tokenization industry. DigiShares is a white label platform provider of security token products. He has secured multiple funding and worked with venture capital firms, many clients and institutional investors around the world. With over 20 years of experience in the software, IT, computer science and tokenization industries, he is a valuable asset to the Supervisory Board.
Adam Schmidger – Chief Technology Officer
Adam is an experienced full-stack developer and former software engineer at Ethereum. Adam has played a role in Prezi's startup teams and as an entrepreneur has been involved as a founder on multiple startup teams.
One of Adam's best qualities is motivating and coaching his team to maximize productivity, and he is also a certified Scrum Master, a key factor in building an organized and successful startup.
Adam Blazek - Technology
Adam is a software developer at heart. When he was a child, software and technology were his daily focus. He made his first computer game at age 12.
He holds a Master's degree in Computer Science from Aalborg University and is currently a Business Developer at DigiShares, a respected company in the tokenization industry. He holds the same role at VentureFusion, a venture capitalist that invests in startups. They use blockchain as a basis for new companies to introduce this new technology.
Alexander Burstein – Project Consultant
Alexander holds a Master of Laws and an MBA in Business Studies. He is Chairman, CLO and CEO of several companies. Alexander is considered one of the most well-known figures in the European blockchain industry.
Spherium Finance, where Alexander serves as CEO, is currently one of the largest decentralized finance projects in Europe, and after several successful token sales, Alexander serves as an advisor on DeFi, ICO and blockchain at EstateX.
Sergei Servantsyan – Head of ICO
Sergey graduated from State University, worked as a software engineer, worked as a graphic designer, then became an office manager, opened several offices recruiting IT professionals, and managed a highly successful Internet service provider and computer and network support center business. Finally, he got a great opportunity to manage the entire ICT infrastructure in Moscow and the CIS at major international companies such as Nokia, Alcatel-Lucent, GEA, Shell, Shire, and Bexin. Now he has become a high-quality senior ICT manager, CIO&CTO in the ICT industry.
Now fully involved in the blockchain industry and extremely excited to change the world by implementing and disseminating cutting-edge technology to people. Since 2017, he has organized, led and moderated over 100 events globally, led at least 30 ICOs and is currently working with amazing startups.
Lex Schroeder – Real Estate & Finance
Lex has more than 20 years of experience working in financial markets and the Dutch real estate market. He is an experienced mortgage consultant.
Lex owns several stores of the award-winning Dutch mortgage company "de Hypotheekshop". Lex's day-to-day work includes talking to clients, banks, and mortgage lenders, so he has extensive experience and many relevant connections within the financial industry in mortgages, loans, refinances, and real estate.
Vladimir Kavrilyuk Jansen – Legal Advisor
Volodymyr is a Danish/Ukrainian lawyer specializing in international business law and the legality of cryptocurrencies, regulations and securities products.
After earning a degree in International and European Law at the University of Groningen with a thesis grade of 8.0, Vladimir continued his studies, specializing in International Business Law, becoming an LL.M. at the University of Copenhagen. Here, he received 12 points out of 12 for his paper on the changing landscape of EU financial law, with a particular focus on DeFi and security tokens.
Before becoming legal counsel at DigiShares, Volodymyr spent some time in the corporate world as a legal assistant. Volodymyr will advise EstateX on all regulatory requirements applicable to primary and secondary offerings of security tokens in various jurisdictions. This will include prospectus rules, licensing and reporting requirements. He will also provide advice on token structure, distribution and compliance responsibilities.
ESTATEX development potential outlook
As one of the early explorers of RWA in the real estate field, ESTATEX is breaking a series of shackles of traditional real estate investment.
The blockchain itself is a permissionless, distributed, public facility that can serve as a new conduit to connect everyone and represent a new ideology. ESTATEX is based on a tokenized real estate issuance mechanism on the chain. This emerging crypto-token real estate bond is more transparent and eliminates the information gap of early traditional real estate bonds. Investors can more clearly control potential risks, instead of always being seized by bankers, developers, etc.
DeFi has already provided an early demonstration for on-chain finance, making on-chain financial products more scalable based on composability and scalability. Now ESTATEX is rebuilding the real estate market using DeFi and RWA, and is exploring more benefits. It has more advantages and potential in terms of methods and richer product forms.
Introducing real estate value and real estate economy into the chain in the form of RWA, this brand-new method is more extensive and flexible than traditional real estate investment methods. For example, ESTATEX can divide real estate and merge it into real estate in the form of tokens. Giving it long-term liquidity, all types of investors can easily enter and exit, and quickly profit from the potential real estate market.
The new on-chain real estate facilities based on ESTATEX will push the real estate market in a new direction to explore a series of potential and flexible business models, deeply releasing the potential of the real estate field.
In terms of market size, although the global economy has suffered a severe blow after the frequent occurrence of global black swan events such as COVID-19, the traditional real estate market still maintains a huge market value. The current value of the global real estate market exceeds all The sum of stocks and bonds is almost 4 times GDP, and the European tokenized real estate market is expected to reach 1.5 trillion euros in 2024. Backed by hundreds of billions of dollars in real estate, the RWA field, as a new business track, will be a complete blue ocean market, so the development potential of ESTATEX is obvious.
Of course, as an emerging field, the main problem of RWA is the execution and coordination of on-chain and off-chain processes. Unlike DeFi lending protocols, where liquidation is fully automated and managed by code, liquidation of RWA collateral (at least partially) must be handled off-chain, usually through the legal system. This in turn brings complexity to the debtor and legal disputes over the agreement in which the RWA is used as collateral, which is currently the most serious problem facing all RWA-type projects.
ESTATEX is giving its business legitimacy through compliance. Currently in Europe, it has been able to obtain support from relevant regulatory agencies in the process of real estate RWA, which will significantly reduce potential legal risks and protect investors. rights and interests. At the same time, the ESTATEX team and advisory team also include many senior practitioners in the fields of real estate, law and finance, which will further promote ESTATEX to play an important role in exploring compliance and reducing legal risks.