Shark Tank's Kevin O Leary has been working on an ICO project in the real estate sector.
This is the first SEC approved ICO.
They are allowing investors domestically and internationally to invest in a 400 mill stake in a 3rd of this hotel chain.
Besides being ground breaking in regulation, there are reasons to use a coin in this offering rather than stocks.
- Smart contracts on a blockchain platform remove the need for a bank or other 3rd party to facilitate the offering of shares of the asset.
- Assets on a blockchain are tracked on the public ledger. Once again, the usual 3rd party of the bank is not needed to track who has sold what portion of the shares to who. It is all recorded transparently on the public ledger.
- Barrier to entry is low for any level of investor, because as with other coins, you can buy partial shares and invest even $20 to get in on the opportunity to own some real estate.
He can't disclose all the details yet, and is claiming we will find out in 3 weeks which company it is.
Decentralized currency is amazing and blockchain tech is revolutionizing the future.
And there are arguments for and against regulation in this sector.
But SEC compliance and regulations from governing bodies will help to increase acceptance and subsequently, more understanding of blockchain technology.
Also, it allows for institutional investing to participate and infuse more money into the crypto sector.
Here is the video on CNBC Squakbox where he gives a sneak peak at this new real estate backed coin they will be releasing soon.
ICO.
