TNCoin is the latest addition to the cryptocurrency world with a claim to base its operations not on a new commodity that will take years to set up, but on something that has been profitable for years: real estate.
This up and coming project (with its initial coin offering (ICO) started on May 15, 2018) aims to revolutionize the real estate industry by tokenizing properties onto the blockchain, where people will then be able to earn dividends from their share of assets while enjoying the increase in the token’s value.
Since real estate investment has been a profit-generation model for centuries, TNCoin aims to set itself apart from other new ventures – whose success is based upon under-development products and solutions – by offering a profit generation model that has been operating in the conventional setting successfully for everyone to see, with the added difference of it now being integrated into the digital world.
Staying true to its name, TNCoin will be focusing on properties that are based in the State of Tennessee and will be offering their tokenization through its native token, TN, which will allow their holders to earn dividends on properties that the TNCoin team acquires overtime.
TNCoin Says It Already Has Potential Property In Place
TNCoin shows that it has already enquired about a property in Nashville, Tennessee: a 68-unit apartment complex with differently sized apartments that are all said to be rented out and thus already in place for a steady source of revenue.
There are other potential properties the team are looking to acquire should the hard cap be reached and the project be successful, and with a promise of regular dividend payments to investors based on the rental income of these properties, it seems a good long term investment for potential returns.
The whitepaper terms this property, 1601-1603 Herman Street, to be appraised at a value of over $16 million with an in-place capitalization rate of 6%.
However, the glaring absence of specific dividends or the method of spreading out the profits for each TNcoin is alarming, since the project only lays out a hypothetical scenario of calculating the net asset value for each TNCoin, not the value that each of those tokens will be able to generate in terms of dividends.
Other Properties Are Shown As Potential Options
TNCoin also presents additional properties in the form of 42 individual houses that are located in Chatanooga, Tennessee and will be acquired for a value of $2 million.
However, once again, TNCoin does not specify what the rate of return will be on these properties or how the dividend will be distributed amongst each individual TNCoin token.
The Project’s Whitepaper Does Not Offer Much Information
Usually, a whitepaper is where you can find the most detailed information about a project, as it is essentially a portfolio by which users can decide where or not the project will be a profitable investment for them.
Ironically, the TNCoin homepage offers more information than its whitepaper does in this regard, since according to the website, the TNCoin platform will be offering the following services, most of which are not to be found in the whitepaper itself.
Even though it is described in the whitepaper that TNCoin will be built on top of the Ethereum blockchain and will thus have its TN token as an ERC20 token, not much information is provided on the technicalities of the project or how it will function in terms of a user interface or interaction.
Instead, the project’s whitepaper is filled with information about how real estate works and ground level details of the property that the project has already acquired.
However, the whitepaper does talk about the net asset value per token:
“For the purposes of this white paper, the Fund defines Net Asset Value Per Token as:
[(operating income / cap rate) – debt] / (number of coins in existence)”
That being said, the starting value per TNCoin is $1, which means that if the project raises $5 million, then $5 million TNCoin tokens will be generated.
The Team Behind TNCoin
The project has two core team members, Luis A. del Mazo, Jr and Tanya Rodriguez, who belong to the Tennessee real estate industry.
Rodriguez is said to have been working in the real estate industry since 1998, where she also worked for the Tennessee Fair Housing Council, becoming the Assistant Director of the organization.
Whereas, del Mazo, Jr. is a former Remax realtor, who worked with the company for 10 years from 1998-2008 and is touted as being a member of the Remax’s elite 100% Club, where he was one of Remax’s top names for real estate transactions.
The project’s blockchain development is spearheaded by Oleg Abrosimov, who is touted to be an author of EthereumICO.io.
Details on the Token Sale
The token sale has a soft cap of $10 million with a hard cap of $50 million, with the tokens to be generated according to the value reached at the end of the ICO. The ICO will continue to run through August 30, 2018 in the case that it does not reach its hard cap before that date.
The token allocation is outlined on the website as mentioned below:
“Management [sic] is seeking 10% of total offering amount to cover costs associated with the development of TNcoin infrastructure while distributing the other 90% to token holders.”
As stated above, users can buy the TNCoin at the rate of $1 per token, and can participate in the ICO using Bitcoin and Ethereum. As per the project’s website, 1 ETH for now will equal to 720 TNCoin.
The idea for TNCoin, while not novel, is still interesting since several projects have lately been trying to tap into real estate investments through tokenization, but with not one of them being prominently successful. Therefore, the space is still open for anyone who can prove out their model by providing the first tangible solution in this medium.
The way that TNCoin presents its information on the website seems like a sound approach, but the whitepaper (which is riddled with blank pages and non-technical information) jolts confidence in the project away.
Since the project is said to run through 3 more months until it reaches its hard cap, users can wait for a few weeks to see how it turns out before they go ahead with investing their amount into the project.