Thaler.One is the first project bringing together leading real estate, finance, legal and marketing professionals to offer individual investors a unique opportunity to invest directly in the lucrative global property market. We use state-of-the art blockchain and cryptocurrency technology to execute its vision. With decades of expertise in the real estate market, we aim to set a new industry standard for cryptocurrencies by backing Thaler tokens with real property assets, thereby creating new possibilities for both investing and financing in the real estate sector.
While offering new business opportunities, the booming crypto economy also carries numerous risks, the most significant of which is volatility. Volatility can cause a cryptocurrency to lose most — if not all — of its value in the event of a market downturn. In order to mitigate these crypto risks, we will create the Thaler token — an easily convertible cryptocurrency whose intrinsic underlying value is directly tied to tangible real estate assets.
The Thaler token will offer investors the best of both worlds: the liquidity and ease of use of a modern blockchain cryptocurrency combined with the proven intrinsic value of prime real estate assets. Thalers will be issued to Crowdsale participants and will serve as both a cryptocurrency functioning as a secure means of payment and also as the equivalent of shares in an open-ended real estate investment fund.
90%-95% of all crowdsale proceeds will be used to acquire tangible real estate assets. Thaler token holders will therefore earn guaranteed recurring income from real estate assets at a level of return far higher than that offered by standard financial products such as bank deposits and bonds. These premium returns will be attractive to investors who have not yet invested in cryptocurrencies.
We will offer investors an additional opportunity to disrupt the status quo in the real estate market by taking advantage of the benefits of blockchain technology. For each tangible real estate asset in the fund, we will issue separate tokens — Thaler.Block tokens — which can be purchased by investors (Thaler.Block token holders) who wish to invest directly and design bespoke investment strategies.
Thaler.Block token holders will have the option to personally select individual real estate properties, formats and locations tied to a specific currency (e.g. USD, EUR, CHF) of their choice. This will give investors an unprecedented level of control over the risk-to-revenue ratio of their personal portfolio while at the same time taking advantage of our expertise and that of our external advisers. Each and every property acquired by the fund will be thoroughly vetted to qualify as an investment-grade asset.
This process is called crowdfunding and has been rapidly gaining popularity in the real estate market over the past two to three years. Some of the most popular U.S. internet platforms include RealtyShares, RealtyMogul and Cadre, all of which collectively attracted over $1 billion in funds from investors over the past few years. These platforms are currently valued at hundreds of millions of dollars. However, these platforms do have limitations, the most significant of which is the absence of liquidity. Once an investor has invested using one of these platforms, he/she must usually wait until the project end date to receive his/her funds. Our technology eliminates such limitations because tokenization of assets using blockchain technology allows for the sale or exchange of tokens at any time.
We will eventually establish an internal exchange platform allowing investors to buy, sell or exchange Thaler.Block tokens in accordance with their individual investment strategies. In addition, blockchain technology will remove all national borders and will offer unlimited opportunities to invest in stable European real estate assets for investors residing in closed-market economies or in economies with restricted access to international investments.
Certain commissions and fees will be charged for the issuance of Thaler.Block tokens. These commissions will generate additional returns on top of the recurring income generated by direct real estate assets for Thaler holders. With this idea in mind, we plan to shake up the global property market, which attracts an estimated $750 billion dollars in total investments each year.
Real estate has historically shown stable long-term growth, outperforming even precious metals in the long run. While extremely lucrative for both corporate and private investors, private investors usually face a structural disadvantage. This is because investments of less than one million dollars can only expect to generate low single digit annual returns — not much more than the average interest rate offered by banks on deposits. In stark contrast, corporate investors, who usually have tens of millions of dollars to invest, can take advantage of their access to wide range of financial tools: mezzanine loans, investment in development projects, etc. These tools and the amount of money they have at their disposal allow corporate investors to leverage their buying power and secure significantly higher returns on their investments as a result.
Our blockchain platform will eliminate middlemen to offer individual investors — irrespective of their country of residence, nationality or other restrictions — the opportunity to generate maximum returns from real estate investments, all while preserving the liquidity and principal value of their investments.