Whitepaper

INDEX OF CONTENTS

  1. Introduction
  1. AssetX Platform
  • Phase 1
  • Phase 2
  • Phase 3
  1. Background & Limitations
  1. The Solution
  1. Investment Strategy
  1. Technology
  1. Roadmap
  1. ICO

 

 

 

 

Introduction:

AssetX Platform is a tokenized investing platform based on the blockchain technology which aims to provide access to traditional asset classes: Real Estate, Fixed Income, Equity and Commodity markets to cryptocurrency investors.

The platform provides:

  1. Access to real estate investments through the blockchain
  2. Tokenized liquidity and tradability of real estate anonymously
  • Geo-Thematic(city-focused) exposure to real estate through the blockchain
  1. Access to government bonds through the blockchain
  2. Tokenized liquidity and tradability of government bonds anonymously
  • Geo-Thematic(country-focused) exposure to government bonds through the blockchain
  1. Access to fiat currency through the blockchain
  2. Tokenized liquidity and tradability of fiat currency anonymously
  • Geo-Thematic(country-focused) exposure to fiat currency through the blockchain
  1. Access to equity indices through the blockchain
  2. Tokenized liquidity and tradability of equity indices anonymously
  3. Geo-Thematic(country-focused) exposure to indices through the blockchain
  1. Access to commodity markets through the blockchain
  2. Tokenized liquidity and tradability of commidities anonymously
  • Geo-Thematic(resource-focused) exposure to commodities through the blockchain

 

AssetX Platform:

AssetX Portal which aims to be the world’s largest platform for tokenized investments in traditional assets using blockchain technology.

  1. Phase 1: Launch and tokenize real estate through the Geo-Thematic City Funds.
  2. Phase 2: Launch and tokenize other asset classes government bonds, fiat currency, equity indices, and commodity markets.
  • Phase 3: Tokenize and ICO the AssetX Platform

 


 


 

 

Phase 1

AssetX Geo-Thematic Funds:  Are geography and theme focused funds which investment in traditional asset classes.

Real Estate

Funds invest directly into respective city real estate or through partnerships with the largest P2P Crowdfunding portals into carefully vetted transactions. AssetX has partnered with the largest P2P Real Estate crowdfunding portals including Fundrise, Prodigy Network, Realty Shares, Patch of Land and more.

  1. NYC Token, with ownership in a New York City real estate focused fund. Investing in new and resale properties, Equity and Debt transactions. Capital gains, and Buy-to-rent model. (more details in investment docs)
  2. LAX Token, with ownership in a Los Angeles real estate focused fund. Investing in new and resale properties. Capital gains, and Buy-to-rent model. (more details in investment docs)
  • LON Token, with ownership in a London real estate focused fund. Investing in new and resale properties. Capital gains, and Buy-to-rent model. (more details in investment docs)
  1. DXB Token, with ownership in a Dubai real estate focused fund. Investing in new and resale properties. Capital gains, and Buy-to-rent model. (more details in investment docs)

More City Tokens Coming Soon: Los Angeles, Vancouver, Toronto, Sao Paulo, Paris, Hong Kong, Tokyo and Sydney

Landmark Property Tokens Coming Soon: Empire State Building Token, Burj Khalifa Token, The Shard Token

Phase 2

Fixed Income

Funds that invest directly into government bonds of listed countries. These funds invest in local currency government bonds of the largest soverign bond markets

  1. UST Token is a Balanced portfolio of short and long duration US treasury securities.
  2. JGB Token is a Balanced portfolio of short and long duration Japanese Government Bonds.
  • GILT Token is a Balanced portfolio of short and long duration UK Gilts(Government bonds)
  1. BUND Token is a Balanced portfolio of short and long duration German Bunds(Government Bonds).

 

 

Fiat Currency

Funds that invest directly into fiat currency of listed countries. These funds are held in offshore bank accounts.

  1. USD Token is a fund of US Dollars deposited in an offshore bank account.
  2. JPY Token is a fund of Japanese Yen deposited in an offshore bank account.
  • EUR Token is a fund of Euro currency deposited in an offshore bank account.

Equity Indices

Funds that invest directly into futures contracts at 1X leverage to provide linear exposure to the underlying index.

  1. SPX Token is a Zero-leverage(1X) portfolio of S&P 500 futures to provide index exposure.
  2. NDQ Token is a is a Zero-leverage(1X) portfolio of Nasdaq 100 futures to provide index exposure
  • NIK Token is a Zero-leverage(1X) portfolio of Nikkei 225 futures to provide index exposure

Commodities

Funds that invest directly into futures contracts at 1X leverage to provide linear exposure to underlying commodity.

  1. GLD Token is a Zero-leverage(1X) portfolio of Gold futures to provide commodity price exposure.
  2. SIL Token is a Zero-leverage(1X) portfolio of Silver futures to provide commodity price exposure.
  • OIL Token is a Zero-leverage(1X) portfolio of Crude Oil futures to provide commodity price exposure.
  1. COP Token is a Zero-leverage(1X) portfolio of Copper futures to provide commodity price exposure

More Tokenized Asset Classes Coming Soon: Private Equity, Private Debt, Fiat Currency, and Income Streams

 

 

Phase 3

AssetX Platform Token: Phase 3 we will launch an ICO of AssetX which will be the biggest marketplace for tokenized investments into traditional asset classes.

 

 

 

 

 

Background & Limitations

Global Real Estate investment is one of the most desirable and safest investment options for people around the world. Unfortunately, right now there are several issues and impediments for easy and successful investment into international real estate assets by individual investors around the world.

There are many formal and informal barriers to investment. Informal barriers include risks that investors may perceive such as political and cultural risks as well as other qualitative factors. Formal barriers include capital controls, local regulations and local maintenance.

Formal Barriers: (Ability to Invest)

  1. Restriction to capital accounts and repatriations of gains
  2. Legal Barriers
  • Taxes and Costs
  1. Initial Investment Size
  2. Professional Management of Investments

Informal Barriers: (Willingness to Invest)

  1. Political Risk
  2. Currency Risk
  • Liquidity Risk
  1. Cultural Barriers
  2. Geographical Barriers
  3. Legal and title Risks

The listed barriers to investment are obstacles even the most experiences and sophisticated investors tend to avoid. AssetX aims to overcome these issues by building both the technology and local presence to offer access to and generate high risk-adjusted returns on international real estate.

Our platform is aims to become an ecosystem of managed investments in real estate by tokenizing managed funds in a comprehensive manner. From the ability to invest into P2P Crowdsourced investments in our P2P Fund to the most bespoke localized transactions in our Geo-Thematic Funds.

Global Real Estate is the largest asset class in the world at over $220 Trillion in estimated market size. Much of the global real estate market is hard for international investors to tap into. There are many hurdles from the large initial capital outlays involved which are not feasible for most investors to the considerable legal and regulatory hurdles. Not to mention the issues related to the professional management of real estate located in some of the best mega cities around the world. What our platform does is it sources, vets, does due diligence, invests and manages real estate digitizing the ownership through the blockchain.

The ownership documentation and the balance sheets of the properties which are divided into equivalent value of the investments fund specific tokens. The funds will be structured are as follows:

  1. Target fundraise amount, set-up documentation, and set timeline for pre-sale
  2. ICO for the funds token
  • Place raised funds in escrow, and search for high risk-adjusted return profile investments
  1. Invest into identified real estate assets.
  2. Disburse income/dividend payments on a quarterly basis.

 

For example,

the Geo-thematic NYC token will be structured as a fixed-capital closed end fund registered under an offshore entity. That entity would invest through a USA based LLC into New York City real estate which have met our stringent metrics for superior returns and under-market pricing. The investment may include invesments into NYC area based real estate crowdfunding investments. This structure is to be fully compliant to US and International laws.

 

 

 

The Solution

When you invest through AssetX you will be able to invest directly into real estate based on geographic themes, and into the P2P crowdfunding arena through the cryptocurrency market offering all the benefits of the blockchain, as well as providing diversification into hard-asset backed tokens for your cryptocurrency portfolio.

 

 

A very important advantage in all our funds will be the ability to view in-detail all of the funds properties using our AssetX Property Portal by all the tokenholders of the Fund.

 

 

 

Geo-thematic funds, will allow cryptocurrency investors access to private market real estate in large cities. We are initially launching in the largest urban real estate markets in the world; New York City, London, Dubai, and Singapore. Each city will be an individual separate fund which invests into local professionally managed residential real estate, such as apartments, homes, land, and commercial real estate such as hotels, retail, and office buildings. The funds will allow access into keystone properties listed on top Real Estate P2P/Crowdfunding portals in the world. We have partnered with the largest Real Estate crowdfunding portals and will invest into carefully vetted top performing properties from these portals into the fund. These investments can be accessed through the individual city tokens, e.g. NYC, LON, DXB, or SGX. The fund will follow the investment mandate briefed below: (Detailed Investment Strategy ahead)

  1. Acquire: We will carefully select a portfolio to invest in and acquire ownership of income-producing, or capital addition opportunities in developed markets, and top cities across the world.
  2. Value-Addition: We will add value to the real estate where required, and exit at a profit, or rent it for income.
  • Income Producing: Most of real estate we acquire is to be income producing and have a target rate of return beating regional and global benchmarks.
  1. Professional Management: We will manage real estate by using local resources at minimal cost.
  2. Anonymous Ownership: The real estate is owned by independent offshore companies which are divided into equal shares from the token sale specific to each investment.
  3. Regulatory Burden: We will assess and manage the local regulatory burden

 

AssetX Platform

AssetX platform aims to be the largest real estate backed blockchain in the world. We are structuring the platform to be the largest anonymously owned real estate fund, with strong income generation and most importantly tokens listed by city of real estate investment. This is the most unique yet most efficient means to invest into real estate and have the option of diversification based on geography. This enables investors to be able to diversify and gain exposure to different macroeconomic and microeconomic variables driving each real estate market in major cities across the world.

AssetX’s Geo-thematic funds will revolutionize the way investors invest into passive real estate and tokenholders will be rewarded as the platform launches.

Geothmatic Funds

Geo-thematic funds, will allow cryptocurrency investors access to private market real estate in large cities. We are initially launching in the largest urban real estate markets in the world; New York City, London, Dubai, and Singapore. Each city will be an individual separate fund which invests into local professionally managed residential real estate, such as apartments, homes, land, and commercial real estate such as hotels, retail, and office buildings. These investments can be accessed through the individual city tokens, e.g. NYC, LON, DXB, or SGX. The funds will allow access into keystone properties listed on top Real Estate P2P/Crowdfunding portals in the world. We have partnered with the largest Real Estate crowdfunding portals and will invest into carefully vetted top performing properties from these portals into the respective city funds.

The fund will follow the investment mandate briefed below: (Detailed Investment Strategy ahead):

  1. Acquire: We will carefully select a portfolio to invest in and acquire ownership of income-producing, or capital addition opportunities in developed markets, and top cities across the world.
  2. Equity & Debt: We will invest into both equity and debt securities on collateralized by these properties listed on the P2P Crowdfunding portals, and will look for strong sponsors with a long and successful track record.
  • Value-Addition: We will add value to the real estate where required, and exit at a profit, or rent it for income.
  1. Income Producing: Most of real estate we acquire is to be income producing and have a target rate of return beating regional and global benchmarks.
  2. Professional Management: We will manage real estate by using local resources at minimal cost.
  3. Anonymous Ownership: The real estate is owned by independent offshore companies which are divided into equal shares from the token sale specific to each investment.
  • Regulatory Burden: We will assess and manage the local regulatory burden

AssetX P2P/Crowdfunding Partners include the following Real Estate crowdfunding portals:

The investment strategy seeks to invest in a diversified set of residential and commercial properties in each of the respective cities of each fund. The investments will be directly into either a portfolio of properties fully owned, or into private market debt & equity securities sourced through private markets and through P2P crowdfunding portals. The strategy seeks to carefully vet a portfolio with a stable stream of high risk-adjusted returns yet focus on a city-focused geography. The portfolio will include both rental/income properties as well as short/long-term value-add properties.

The portfolio will be tailored to each cities local investment opportunities. For example Dubai has a large number of new buildings under construction which offer direct access to investors into buying into under-construction properties in installments. Another example is buying a townhome in NYC or London and converting it into short-term rentals

Investment Strategy

Investment Overview

We believe that consistently excellent investment results can be achieved by investing in a diversified portfolio of dominant, high-quality assets while maintaining a low risk profile across the portfolio. The strategy’s research-based portfolio construction process leverages the information advantage created by our in-depth real estate expertise and firm-wide research capabilities.

The characteristics we look for in our property selections include the following:

  • Income or capital addition potential
  • Low Risk & high growth regions
  • Sponsors with a strong & verifiable track record of completed transactions in case of new buildings
  • Stronger growth demographics
  • Solid current income yield
  • Broad portfolio diversification (e.g. combination of residential and commercial properties)
  • Low LTV (for real estate debt & equity investments)
  • High Credit Scores((for real estate debt & equity investments)

The strategy seeks to invest in attractive stabilized assets in markets with strong growth demographics. The size of the strategy enables us to invest in large, high-quality assets, such as fortress malls and trophy office buildings in primary markets. The strategy’s size allows for broad portfolio diversification. No single asset, tenant or industry has undue influence on the value or performances of the portfolio. Additionally, our size and nimbleness allows us access to all major transactions offered through intermediaries and also to transactions not generally available on a competitive basis.

Income & Value-Add Strategy

Value-add real estate opportunities are in the office, industrial, residential and retail sectors, with the ability to invest in niche investments in the alternative property sectors (e.g. senior living and hospitality). It invests in properties that have significant appreciation potential through rehabilitation or new development, as well as major renovation, redevelopment, repositioning and re-merchandising situations. The Fund may also acquire vacant land for development. Assets are held for short/long term holding periods and are sold when they have achieved full value enhancement and replaced with other opportunities in the pipeline. The Fund’s assets will be located in the listed cities for each respective fund and include a balanced mix of income properties and value-add properties

Income real estate opportunities are in the office, industrial, residential and retail sectors, with the ability to invest into a diversified portfolio of carefully vetted high risk-adjusted return properties located within each city in each of the respective city funds. The Fund targets real estate investments that seek to provide a high level of current income and high residual property appreciation. While the overall portfolio is expected to generate a moderate income return, individual investments may have low or even negative income returns due to the nature of the investment, e.g. funding of new construction or carry of vacant land. The Fund will have a moderate to high risk level, reflected in potential volatility of both income and values.

 

Basics of Real Estate Investing

Although there are many complex factors that go into a successful and profitable real estate investment, the basics of making money through real estate investment can be summed up in three different categories.

Cash Flow

A real estate property produces income from the rent its tenants pay. Whether it is a one-bedroom apartment, an office building, or a shopping mall, at the end of the day the property primarily generates income for leasing its space. The property owner must also pay expenses to manage the property, such as electricity, insurance, janitorial, and property taxes, which are deducted from the rental revenue to produce the net annual income or cash flow to investors.

Appreciation

Real estate has intrinsic value, like food or precious metals. People must live, work, and shop somewhere. Yet there is a limited supply of property. How limited depends on location. Manhattan has more people competing for space than Peoria, Illinois. Like all things, price is a reflection of supply and demand. In the world of real estate, if the demand for space outpaces the supply it results in appreciation of the asset. In other words, the value increases, even though there may not have been an overt change to the property physically or to its amount of cash flow.

As an owner of that property that value could be captured in higher rent, a sale, or refinance of the asset. That way you are able to pull out the value created through appreciation. Similarly, property can depreciate if demand falls or supply increases. Real estate prices can be volatile as markets change. Newly developed buildings, government expansion, local crime, recessions, culture, and demographic shifts all affect the supply of and demand for real estate.

Development

Development is the business of improving real estate through the process of building, renovating, or leasing physical property. Just as with the production of a car or computer, raw materials and labor are combined and financed to create a whole more valuable than the sum of its parts. On the whole, land with a finished building on it is worth more than just the land itself. A building occupied by a rent-paying tenant it is worth more than a vacant building.

Evaluating the real estate

As you might imagine, there are many factors involved when analyzing a real estate investment. However, when it comes to determining an investment property’s value (i.e. price) most professionals first use one of two methods: (1) price per unit; and (2) income relative to price.

Price per Unit

The first way a real estate professional will underwrite a property is by looking at its price per unit. In other words, how much the seller is asking per unit of building. Each real estate industry sector generally uses a different unit:

For example, a retail property may be priced at $300 per square foot (PSF), a multifamily residential property may be priced at $250,000 per housing unit, and a luxury hotel could be priced at $500,000 per hotel key.

Retail, Office or Industrial: Price per square foot

Residential: Price per housing unit

Hospitality: Price per hotel key

Because real estate is a hard asset (i.e., has an intrinsic value like a commodity), investors want to know how much per unit you are asking them to pay. Oil is priced per barrel. Gold is priced per ounce. Similarly, investors will price property on a per unit basis too. As we have mentioned previously, many real estate investors aim to purchase property at or below replacement cost (i.e., meaning how much it would cost to replace the building, including purchasing the land).

Income Relative Price

The income approach is a method used to determine a property’s value by looking at the total annual income (produced from rent and other cash flow streams) relative to the property’s price. In the case of a vacant property, the value is calculated based on the potential income, which is derived from estimated market rents of similar properties.

Analyzing a property’s value based on its income is similar to looking at the Price to Earnings Ratio (P/E ratio) of stock for a publicly traded company. With stocks, an investor looks at the company’s net income (i.e., earnings) over a 12-month period compared to the total price of all the outstanding common stock (i.e., total price). So a company that has $100,000 of annual earnings and a total company price of $1,000,000 would have a 10 P/E ratio ($1,000,000/ $100,000)

In the real estate industry, property value is calculated by dividing the income by price (the inverse of P/E). For example, a property with $100,000 of annual income at a $1,000,000 price would be equivalent to a 10% annual yield:

Net Income / Total Price = Yield

Using this equation, a property’s value (i.e., price) can be determined by taking the income and dividing by a desired yield. As an investor, if a property has $100,000 of annual income and you are happy with a 8% yield, you would be willing to pay $1,250,000 ($100,000 / .08 = $1,250,000).

Real estate industry professionals call the market yield (i.e., the average yield a property will sell for on the open market) the “capitalization rate” or “cap rate.” It is typically the first thing a real estate investor will ask when looking at a potential property: “What is the cap rate?” In many ways, it is more valuable to know what the cap rate is than the property’s total price. The cap rate immediately tells you how much annual income you might receive for every dollar you invest and also helps you estimate the amount of debt the property could afford (to be discussed in another blog post).

When valuing property, price per unit is an important indicator of how one property compares to the rest of the market, however it doesn’t tell you how much return you will earn on your investment. Hence, real estate professionals look at both cap rate and price per unit when determining a property’s value.

Legal Structure– Geo-Thematic Fund

The Geo-thematic funds will be operated locally with ownership directly into real estate, into real estate equity securities, and into real estate debt securities through entities registered in Singapore, Hong Kong, Malta, Dubai, and Bermuda. The funds will employ local personnel and/or local real estate management firms to conduct operations in local cities.

The ownership of the entities will be held entirely by the tokenholders of each Geo-Thematic fund.

Distribution of Income– Geo-Thematic Fund

All income, rental and capital gains if any  will be distributed quarterly into each tokenholders specified ETH wallet. All tokenholders will need to fill in a form on the AssetX portal with details of their wallet in order to receive distributions denominated in ETH at a specified time before the distribution date. AssetX will verify tokenholder status, and disburse dividends. All payments will be net of costs associated with managing the funds, which cannot exceed 20% of returns for that period. Return calculation to include

 

 

 

Technology

 

Blockchain Technology Overview:

Blockchain has been one of the most awe-inspiring innovations in the recent times. Blockchain technology basically allows everyone to hold and make transactions as strangers but in a completely transparent manner. There is no mediator in between two people making the transaction, and the entire process becomes easier and cheaper. This concept can be applied to the entire digital world making any kind of exchange/transactions secure (and not just bitcoin).

The blockchain network consists of nodes, i.e., distributed servers. All the nodes can accept and process the transaction. The nodes on the network share information about the candidate transaction. As much as the logic/tech part of it sounds confusing, the business models are so much easier to understand and are really impressive.

Smart contracts are contracts which are automatically enforced by computer protocols. Using blockchain technology it has become much more easier to register, verify and execute Smart Contracts. Open source companies like Ethereum and Codius are enabling Smart Contracts using blockchain technology. Many companies which operate on bitcoin and blockchain technologies are supporting Smart Contracts. Many cases where assets are transferred only on meeting certain conditions which require Lawyers to create a contract and Banks to provide Escrow service can be replaced by Smart Contracts.

Ethereum has created lot of excitement for its programmable platform capabilities. Ethereum allows anyone to create their own cryptocurrency and use that to execute, pay for smart contracts. Ethereum itself has its own cryptocurrency (ether) which is used to pay for the services. Ethereum is already powering wide range of early applications in areas such as Governance, autonomous banks, keyless access, crowdfunding, financial derivatives trading and settlement using smart contracts.

Blockchain use cases:

  1. As a public ledger system, blockchain records and validate each and every transaction made, which makes it secure and reliable.
  2. All the transactions made are authorized by miners, which makes the transactions immutable and prevent it from the threat of hacking.
  3. Blockchain technology discards the need of any third-party or central authority for peer-to-peer transactions.
  4. Decentralization of the technology.

ASX ERC20 Tokens:

ASX TOKENS Enable users to transact on the AssetX platform. They enable users to buy or sell and in a future date create asset backed tokens on the portal and marketplace. Not only do ASX tokens serve as the primary currency of the AssetX marketplace but also also serve as equity investments into the parent company of AssetX, Overseas Capital Group and Overseas Technology.

ASX tokens are fixed in supply at 8 Billion tokens. 4 Billion tokens are to be placed in to a trust account and released at fixed intervals not exceeding 200 Million a year with no set minimum, 2 Billion are reserved for investment into infrastructure and operational expenses. The remaining 4 Billion tokens are to be distributed as follows: 1 Billion will be offered at the ICO and Pre-sale. 2 Billion are reserved for the founders. 1 billion are distributed as bonus share during the initial ICO to the investors.

Tokens to be offered together with the Initial ASX ICO crowd include Investment Tokens for Investment into New York City Prime Real Estate (NYC) Dubai Prime Real Estate (DXB) London Prime Real Estate (LON) and Singapore Prime Real Estate (SIG).

Roadmap

Initial Coin Offering

Initial Coin Offering =  500,000 / Geo-Thematic fund. Conversion = 0.01ETH/1 Geo-Thematic Fund Token

Bonus for investors in Initial Coin Offering:

  • 1ST 50% of ICO investors will get 13% free equity in ASX Portal
  • Next 30% of ICO investors will get 8% free equity in ASX Portal
  • LAST 20% of ICO investors will get 4% free equity in ASX Portal

2017 ASSETX

or

Log in with your credentials

or    

Forgot your details?

or

Create Account