Liquidity and volatility are two issues that dog almost every blockchain technology startup and cryptocurrency, which is why “stablecoins” are becoming popular. Backed by gold, oil, fiat, and other, more established currencies, assets, and utilities, stablecoins offer an interesting alternative to regular cryptocurrencies.
Today, SwissRealCoin (SRC) has announced its estate-backed cryptocurrency platform, which enables access to Swiss real estate value for investors around the world.
By backing the coin with real estate, SwissRealCoin hopes to provide a more stable option.
“Real estate is a very traditional and stable asset class and therefore a very good choice for a real stablecoin,” Marc P. Bernegger, cryptocurrency entrepreneur and ICO advisor at SwissRealCoin, told me. “Switzerland stands out for its stable economic fundamentals in international comparison. Positive GDP growth, very low unemployment, a stable and liberal government, and a very low debt-to-GDP ratio help ensure a prosperous environment for our stablecoin.”
The money raised through the SwissRealCoin ICO will be invested in Swiss commercial real estate assets. A percentage will also go into the development of the company’s blockchain platform, which includes algorithms that it claims will help maintain a reasonable profit and minimize downsides.
The real estate portfolio grows constantly, CEO Brigitte Luginbühl told me, and “SRC has an ever-growing inner value by reinvesting the net rental profits and reinvesting the net profit of software licensing.” Luginbühl explained, “When the market price of SRC deviates more than the double of the value of the real estate, new SRC are issued and sold at market price, which means that we receive more money to buy additional houses and add to the portfolio. This action increases the inner value of the token.”
While the initial offering uses Swiss real estate, the company is already planning to expand into other markets.
“For the SwissRealCoin, real estate is located all over Switzerland,” Luginbühl said. “We are already planning expansions, however, for the GermanRealCoin, EuropeanRealCoin, and so forth, where the portfolio will expand geographically.”
So what’s next for SwissRealCoin, which is headquartered in “Crypto Valley,” as Zug, Switzerland is known?
“We are currently in the pre-ICO stage, where there is a 25 percent discount on the first 25 million tokens sold,” Luginbühl said. “We have also started our road show, where we have attended crypto events around the globe and are currently in Hong Kong at Token2049. Next month, a demo version of the platform is available, with fuller, more robust versions coming in the following months.”
The full SwissRealCoin ICO starts on May 23, 2018.