Cryptocurrency has repeatedly been criticized for not having a “real” market worth or being far too volatile.
In fact, there are increasing fears of a crypto market meltdown or at least sharp market correction after the tremendous gains in 2017 of not only bitcoin but most other cryptocurrencies and tokens.
The most practical advice for guarding against a bear market is to diversify. However, both valuation and diversification of cryptocurrency can be extremely difficult. Bitcoin makes up almost 60% of the global crypto market. This has created so far, a high correlation between the worth of bitcoin and other cryptocurrencies. When the value of bitcoin soars, so do most other cryptocurrencies eventually.
Understanding how to manage volatility within the world of cryptocurrency is one thing. Especially because most cryptocurrency is also by extension, valued by the fiat currency used to buy it.
One solution to diversify inside of the crypto asset class is to create a portfolio of cryptocurrency and manage it with a separate token.
Another solution, of course, is to do something a little different – associating the worth of the crypto token not only with the market value of the cryptocurrency market but also with a real-world asset that is uncorrelated to cryptocurrency.
The team at Caviar believe they have found the perfect solution. They have created the CAV – an Ethereum-based utility token that is priced both to take advantage of the current high returns of the cryptocurrency space while also hedging its value against a less-volatile, lower-performing asset class.
The Caviar blockchain platform will use a combination utility token built on the Ethereum network that provides holders with diversified, risk-adjusted portfolios that combine the stability of the real estate market and a hedged crypto investment that is created from a basket of other cryptocurrencies and blockchain projects.
Caviar intends to achieve these goals by combining investments in multiple crypto-assets with income-generating short-term loans that are backed by real estate in the United States.
Caviar is building a crowdfunding platform which will enable real estate developers to raise short term capital, and allow investors to earn additional profit by staking their tokens.
Guided by its unique intelligent predictive model, the company will make long-term cyclical investments in cryptocurrencies with over a $100 million market cap. These investments will be in high upside projects with a strong “real world” component, blockchain platforms, privacy initiatives and other use cases. At the same time using a proprietary BTC/USD trend model, the platform will also model underlying trends in cryptocurrency prices as they perform against the dollar. The two models will then work together to make real-time judgments about the worth and volatility of the cryptocurrency they track.
At the same time, the company will use a portion of its assets to lend to real estate entrepreneurs who are engaged in the purchase, improvement, and flipping of such properties. The company has a business network in several Northeast U.S. states, including Connecticut, Massachusetts, and New York. They are also beginning to expand to other U.S. states and Europe. Their real estate partners are often involved in the purchase of distressed of foreclosed single and two-family homes in the lower to middle price range (under $500,000).
Borrowers must meet rigid lending guidelines including having a high credit score (over 800). The after-rehab value of the real estate must be under 75%, and the loan-to-value ratio at purchase must be under 95%. Also, the real estate must have a favorable geographic and market placement. All real estate debt provided by Caviar is also secured by a personal guarantee from the borrowers.
Caviar offers several valuable features for investors and borrowers looking for alternatives to traditional real-estate lending.
- Lower risk and higher returns: Token holders have the advantage of being able to benefit from a correlated risk basket of cryptocurrencies while also benefiting from returns in real estate.
- An ongoing and rotating real-estate property portfolio: The company has just announced the financing of its first real estate property in December 2017. The purchased property will be refurbished with the proceeds of the first token pre-sale and then flipped.
- Immediate profit sharing: Caviar will deploy funds and begin profit sharing within the first quarter following the close of the token sale.
- Strong compliance. The company has a strong compliance team. Regulatory compliance is a strong selling point.
- Guaranteed liquidity: 5% of the company’s profits will be used to repurchase tokens on multiple exchanges.
- Backed by stable assets: Cryptocurrency investors need a safe haven token that can withstand the extreme volatility of the alt currency market.
- A 5-Year Track Record. Caviar is the successor to Caviar Capital LP. This is a real estate fund that has been in operation since 2013. Over the past five years, the company’s real estate returns on properties in the North-eastern U.S. have outperformed both the S&P Real Estate and S&P 500 Bond indices by over 300% with a zero default and late payment rate.
Unique Hedged Investments. Caviar’s uniqueness comes from its expertise in two uncorrelated asset classes – crypto and real-estate debt – plus the ability to shift funds from one asset to another based on market conditions. The unique hedged diversified CAV token is the reason the company is able to do this.
Here are the details of the upcoming GoToken token sale:
Token name: CAV
Token base: Ethereum (ERC-20 compliant)
Token supply: minimum 375,000,000
Token sale duration: until 31st January 2018 (get your 7.5% discount now)
Token sale target: $25 million
Price per token: $0.10