There is a possibility of varying returns between token holders, based on their participation or use of the platform. If token holders’ returns depend on their own efforts, and can vary depending on the amount of effort they each put in, then there is less likely to be a common enterprise. It is a virtual currency like Ether or Bitcoin.
Crowdfunding is a HORRIBLE financing model for real estate.
Real estate is a long term investment, where risk is best reduced by diversifying risk across many real estate assets. Any crowdfunding model for real estate that seeks to raise funds in a non-diversified way is scammy and almost certainly going to harm retail investors who get sucked into it.
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[ 4.3 ms ] story [ 22.7 ms ] threadReal estate is a long term investment, where risk is best reduced by diversifying risk across many real estate assets. Any crowdfunding model for real estate that seeks to raise funds in a non-diversified way is scammy and almost certainly going to harm retail investors who get sucked into it.