Topic: [ANN] SmartRE: Fractionalized & Insured Real Estate Platform - page 3. (Read 5645 times)

I joined the blog bounty
http://Https://steemit.com/smartre/@bambang/smartre-insured-and-tokenized-real-estate-on-the-blockchain
Account Waves: 3PA8vXjNKwrNa3k8ios68sGYjGp9KXrnujr

 http://imgur.com/a/DV15i

Here you go. 

House, building , office, or construction projects such as rental does not get much attention.

I'm not confused at all.  I understand perfectly the difference between a "fuel" token and an equity token.

The point is, your marketing doesn't clearly state that what the investor is buying is a fuel token.  Right on the front page of your website, you state:

"There are 100 million SRE tokens, and no additional  tokens will ever be produced, giving them a likelihood of value increase with the utility of the platform, which will grow rapidly with homeowner and buyer adoption that will be spurred by the planned marketing program."

Right up front, you are making claims about "increase of value" which instantly mark SRE as an equity, or, you as making fraudulent or deceptive statements.

If the California attorney general decides to sue you for securities violations, they will simply put that webpage up as evidence.  Bang.  You lose the case.  It makes zero difference what you say elsewhere.  Your front page is the killer. 

People are buying your tokens because they think the tokens are going to appreciate in value.  Your entire token sale is based on that.  Without the "increase in value" component, nobody would buy anything you have, at all.  You would get a few thousand dollars maybe.  As I said, I'm not hostile to your underlying concept.  The problem is that a token sale is not legal in the US if it implies "increase in value", because that makes it a security.  Also you have not addressed the "risk capital" test which your attorney should have told you about.  California will judge your token a security irregardless of the Howey test, if you run afoul of the "risk capital" test, which you do.

PS.  I'll attach a snapshot of your front page for public record, in the next post.

Thank you for your comments.  We're used to constructive criticism so no need to apologize about being harsh. 

You may be confused with the SRE token and the property-specific tokens.  During the token sale, SREs are being sold.  They are structured as vouchers because if we structure them any other way, as you pointed out, they would be securities.  Any token that is structured as "fuel", currency within a system, promises a return or dividend is very likely going to be regulated as a security or currency.  If you look at almost all real token sales (led by people who have experience in building startups), the language is the same because having your token classified as a security is a non-starter.

Any startup has risks, absolutely, so we're not going to tell you there are none.  Success of a startup is based on execution, which includes ways to mitigate risks in addition to delivering what the market wants.  We believe we have the talent, experience, and network to make this startup successful.  Can we guarantee it?  Of course not; that would be lying.  We know there will be detractors and those we cannot convince; we understand that.  Following the legal framework is what's needed for the token sale and that's what we're doing. 

Very interesting project, the team is good too, this project will be surely succeed. i will loking forward to this project and bounty campaign. goodluck on maintaining this project guys 

This is carefully hidden.  They aren't going to even issue the tokens till 2 weeks after the sale, so there will be no way to know if the money is even being put into an address that we can see with Etherscan. 

No address or phone number on their website.    Their founders are on linkedin so that's good.

I think this you are in a risky position here:

-Your token is clearly an equity under California Law. 
-It's not "access to the network".  It's an equity. 
-California has a "risk capital test" which determines what is or is not an equity, and you fail that test. 
-Since US-based equities (such as your token) cannot be legally traded US crypto exchanges, this makes your token useless until one of the registered equity exchanges (NYSE, or t0) decides to start trading tokens.  This isn't likely until Jan of 2018 at best.  So until Jan of 2018 your token isn't really tradeable, except outside the US.
-It appears from your sales brochures that you are trying to convinced foreign token investors that your token will give them "ability to own" of US real estate, which is absolutely not true.  -The token you are selling now will give them no access whatsoever.  If they want to buy fractional real estate, they can do this with many other crowdfunding platforms.
-Your token has almost zero real value and does NOT allow ownership of real estate.   It conveys no technological advantage.  Its sole purpose is to fund your company. This is hidden in your terms and conditions.
-No doubt you have conferred with attorneys and have put in boilerplate language in your agreements.  This is irrelevant.  The California courts won't care what's in your T&C, they only care about the "facts of the matter" and the facts point to your token as a risk capital pre-sale, and thus, equity.

That is a rather harsh thing to write, and I'm sorry, because "fractional ownership of real estate" is a great idea and tokens could be great to enable it.  Maybe you are a great group of people.

Please make a visualization of the collection of money on the site.

I clicked on the button "join the sale now" and opened windows with
Ethereum (ETH) Address:   0x8B95e8A2b950ecd1613Bf8bD4f66C2c020f52C21
Bitcoin (BTC) Address:  15c1H8gywfpoDux3kaHY93q3j1JTA9soQk
Ripple (XRP) Address:  rszgXpT2HQ4Hfm4i4eQ4PqSE5kejsi9M2g
WAVES (WAVES) Address:  3P4w7BminfstBAMo8mm56qP4XHazChaST2L

I go to explorer and now see
ETH Balance:   287.024214771394776798 Ether
BTC Balance 1.36764986 BTC

ICO was started 15 Aug. Where are the investors?  

Currently over 15M tokens allocated.  We don't have information as a majority of contributions are not cryptocurrencies (people are riding the uptrend?).

How many funds already raised? Can't find this info at your website.

While gas is a component of the fee, there are other considerations.  The platform provides the services that are needed to make sure all sides are protected, and there are costs associated with them.  If it were just the gas fees, then, yes, it wouldn't make much sense.  Just like if the gas companies didn't provide the gas stations (yes, they are usually franchised), the transportation of the gas, etc. then our price for gas should be much lower than what we pay. 

Hope this helps!

I have not really understood something that I would be grateful if someone can toss in some insight.

The usage of a SRE token is to provide a discount of 75% on the fees paid for the gas usage necessary to create a smart contract in the ethereum network. Please correct me if I am wrong.

The average cost of such a smart contract is about 20 cents, right?

So, how something that I am going to buy for 30 cents that is meant to provide me discount on a cost on average of 20 cents has value? And how can this value increase?

From my point of view the value of the SREs tokens is not correlated with the success of the business model. I do believe that the project has the potential to be a blockbuster, yet I cannot conceive from where the value of the SRE tokens is derived and how it can increase?

Thank you in advance.

good job ,  i have a litte time to collect eth to join in , thanks sir ,hope have a good day

The ICO begins!  15% bonus for the first 48 hours!  Check out SmartRE.io

That's probably why the whole ICO market is slowing down, people fear about an other dump, it's easier to invest when there is stability in the market, so yeah you should update the thread announcing investing in fiat is possible

Like MonkeyCapital, the team is made up of solid gods, and the first moments have made fun of it, the nation is now regrettable. I do not know whether this project holds, but even for the team as it is monkey, I think it will be a very good investment.

Very interesting. Is there any link for us to view the fund raised?

This is just a guess, but we think with the rise in prices of cryptos in the last week, quite a few people want to hang on to them for appreciation until the next break.  Therefore, the use of fiat, which isn't as fast-appreciating (or volatile) is a convenient way to contribute. 

that's something interesting if there's newbies which considering joining the pre sale by using fiat it would be a good thing for this project
hope you can also give the community more updates regarding on what would be the status of those people who will invest using their
own currency or usd.