THE REVOLUTION OF ASSET TOKENS- BRICKBLOCK.

INTRODUCTION

The value of gold decreases and increases, and so do the currencies that we use on daily basis. Sometimes the US dollar will rise, and some other times, it falls. The same applies to cryptocurrencies. We’ve seen Bitcoin top at 16,000 USD and now look at its price. Regardless, investing in currencies can be a risk and worrisome for most people who want to keep their money safe. Hence the use of assets. Assets are a way to ensure that our money is never lost or gets a decrease of value whenever the currencies shift. They will always stay at their value or at a similar one, ensuring maximum safety for our finances. And now that cryptocurrency is taking over the world with technologies and services provided for mostly everything in our lives, it wouldn’t be surprising to see Brickblock.

Brickblock is the first project to create an infrastructure platform to connect real-world assets and cryptocurrencies. The platform makes investing easier for existing cryptocurrency-only users as well as those who don’t wish to deviate from the conventional financial instruments to play in both fields.

WHAT IS BRICKBLOCK?
Brickblock is how we’ll be able to use cryptocurrency as a way to buy tokenized real estate assets, without having to use fiat money at all. This is the only cryptocurrency that allows investors to buy assets with tokens, not to mention the ability to trade and exchange them however you see fit, as explained in their whitepaper. Along with the fact that it’s a decentralized blockchain, it would be safe to say that Brickblock is set to succeed in its ventures.

HOW DOES THE PROJECT WORKS?

The working of the project revolves around the concept of Proof Of Asset. Investors send ether to smart contracts after selecting the fund they want to invest in. After the broker/dealer receives confirmation of the funds,he purchases the assets and sends the shares in a trust fund. Investors receive Proof Of Asset tokens in return. Brickblock legally ties its Proof-of-
Asset (PoA) Tokens to real-world assets like real estate, exchange- traded funds (ETFs) and crypto indices. Owning a PoA token means you have real ownership of the
underlying assets. Every asset is represented by its own PoA Token.

MARKET PLAN
Brickblock is a service provider, we tokenize real world assets and we will have an exchange that will provide liquidity to assets. Therefore, there are 2 types of clients as in a marketplace.
The first client is the asset provider, we will get them by assisting to large conferences as MIPIM (the biggest real estate conference in the world) or other large conferences where asset managers assist.
The second client is the one that buys
the PoA tokens, this second client is harder to get as facebook, google, twitter and other Silicon Valley corporations are banning
cryptocurrency related ads. We will focus on creating a community around our project. This community is represented by ambassadors or influencers, content writers, video and image animators, and of course the ones that are spreading the word by sharing our content.

GOVERNMENT vs BRICKBLOCK
If a government seizes a property, there is no legal way to prevent that from happening. The government can sell the property, just like if it was your personal house, and the owner has no power to stop this process. This is true no matter if the property is tokenized or not. In that case, any remaining profits from the sale are distributed to token holders. Token holder’s claims are actually in front of the owners. Token holders come first.
On the other hand, these are investment-grade properties housed inside an SPV, which limits liability for token holders. If you owned a property without an SPV, the government can come after every token holder for more than they invested as there is no limit on the liability without an SPV. This is why Brickblock uses the safest structures available — structures utilized by the largest financial institutions in the world to protect token holders.

TOKEN
There are 3 types of tokens on the Brickblock platform.

a) Access Tokens: Brokers and fund managers need access tokens to list their funds on the platform and pay transaction related fees. There is a 0.5% transaction fees on the platform which needs to paid in access tokens. The access tokens are burned after use.

b) Brickblock tokens: These are the tokens which will be released during the crowdsale. The Brickblock tokens serve no purpose other than their ability to generate the access tokens. When locked in a special smart contract, the brickblock tokens generate the access tokens every week. A limited number of Brickblock tokens will be generated during the crowdsale. Their ability to mine the access tokens will give them value.

c) Proof of Asset tokens: As mentioned above, these tokens are the proof of
ownership over a fund’s assets. There is a hardcap of $50 million for the crowdraise. The total token supply of 500 million, around half of which will be distributed in the crowdsale, 35% in company lockdown
while 14% for the team and early backers. The token will be priced at $0.36 for the first 2 days of the ICO ,which will subsequently be increased to $0.38 and $0.40.

TEAM
There are around 20 members in the team including 6 full time developers.
Cofounder Martin Mischke is the cofounder and ex-CFO of Bitwala,a blockchain-based payment service provider for remittance and international payments in Europe. He is a co-founder of Bitcoins Berlin, a Bitcoin startup incubator. The other cofounder Jakob Drzazga has been a real estate developer in Berlin for 5 years.

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There are 5 advisers with expertise in
legal, regulations and other project based requirements. Since it is said two heads are better than one, quality services can be assure .

THE VERDICT
Cryptocurrency based fund management along with traditional assets makes sense. The core intention of investing in funds is to diversify the risk. However cryptocurrencies have a very high correlation with each other. A correction in major cryptocurrencies usually results in the fall in prices of most of the other coins. Investing some cryptocurrency holdings in traditional assets might help mitigate volatility risks. However, there is a reason why other cryptocurrency based fund
management companies are not touching traditional assets. Connecting cryptocurrencies and traditional assets involves a lot of legal hassles. Brickblock
itself will use 15% of the funds raised in the ICO for creating legal structures, with legal teams present in many countries. Going ahead the success of this project depends on how the team navigates through regulations and whether cryptocurrency holders will find value in diversifying in traditional assets.

RISKS
a)As mentioned above, there are a lot of
grey areas in terms of regulatory aspects. The product is compliant with EU and Gibraltar laws, but legal issues might arise in other geographies. Considering the risks involved, the token sale is prohibited for US and Chinese investors.

b) There is a lot of competition in cryptocurrency based funds management segment of the business. Many well known companies like Melonport, ICONOMI are already in their beta phase.

c) The 3 token system is quite complicated. Regular users may not have the patience to understand all the intricacies.

GROWTH POTENTIALS

The project is different from existing
projects. It adds value by introducing
ETFs and REFs.
**It is actually very difficult for retail investors to access ETFs and REFs of other geographies.
**Investors will find a lot of value in the
project if they are able to invest across
geographies with ease.

**There is incentive to keep holding the
brickblock tokens, as locking them in smart contracts will generate the access tokens. **As the brickblock tokens are limited in number, there is a good chance that they will appreciate in value significantly.

CONCLUSION
Arriving at a very impressive score for Brickblock. The project is worth investing, if you believe the management will efficiently deal with all the legal and regulatory issues that will pop up going ahead.