Alt.Estate

Protocol to tokenize real estate and Platform to trade tokenized property assets in fractions. 20+ smart contracts are already created and a working prototype with 3 tokenized apartments launched.

About Alt.Estate

Alt.Estate Group aims to create a platform and protocol that will reduce the barrier to entry for real estate investment by tokenizing assets with regulatory compliance. The platform facilitates primary and secondary trading of tokenized assets. ALT tokens are intended to be utility tokens which are used to pay transaction fees and purchase SQM tokens. SQM tokens are a store of value are used to raise funds by sellers that tokenize their real estate. ALT and SQM tokens also provide voting rights for various aspects of the platform including Witness Nodes administration approval, property management, future platform development, and witness pay. SQM tokens can be traded P2P or through any platform. However, transaction costs that are built into the SQM smart contract are payed exclusively with ALT tokens.

Token Sale Use of Blockchain

Product

3.0
Product
Readiness

Is the product ready for use? Is there a working prototype or MVP? How long until it is operational?

2.0
N/A
2 - Proof of concept or test platform.
Appeal

How appealing is the product? How good or necessary is it? Does it have a distinct edge?

3.0
N/A
3 - Interesting.
Target User Base

Is it mass market or niche?

4.0
N/A
4 - Large audience / wide market.
Competition

Are there many other similar solutions or is this one of just a few, or even one of a kind?

3.0
N/A
3 - Some normal competition.
Innovation

How innovative or inventive is the product, either conceptually or technologically?

3.0
N/A
3 - Partial, a novel approach or aspect.

Product

Alt.Estate allows sellers to easily tokenize assets after passing all KYC/AML procedures and approval from an “expert committee”. It is stated that there are 3 locations (apartments) that have already been tokenized. The platform aims to increase liquidity of real estate while decreasing transaction costs while complying to regulations. As a platform that aims to facilitate a service that allows for the trading of tokenized assets, specifically real estate, Alt.Estate faces considerable competition. However, thorough discussion regarding the (blockchain-focused) competitors of the organization are not included in the document.

Product Whitepaper

Use of Blockchain

3.4
Use of Blockchain
Blockchain Development

Is blockchain technology essential? Does it make the solution significantly different and better?

4.0
N/A
4 - Innovative use of blockchain technology.
Disruptive Blockchain Advantage

How disruptive is the introduction of blockchain technology into the product's market space?

4.0
N/A
4 - Generally disruptive.
Need for a Custom Token (vs. BTC or ETH)

Is the token essential or could it be done just as well or better with fiat or Bitcoin?

4.0
N/A
4 - Token is essential to platform.
System Decentralization (besides token)

How decentralized is the system architecture other than the token (e.g., data collection, storage, access, and use, or decision making processes, etc.)?

2.0
N/A
2 - Centralized with some plans to decentralize.
Contribution to Blockchain Ecosystem

How compelling is the solution's contribution to the evolution of blockchain infrastructure and economy?

3.0
N/A
3 - Interesting.

Use of Blockchain

Alt.Estate employs a two-token model with property-specific SQM Tokens and platform ALT tokens (both ERC20). Each property listed on the Platform has its own SQM_{PID} (related to the area of the property in square meters). “The SQM token was engineered to be legal proof of real estate property ownership, and integrate with blockchain property rights registries as soon as the necessary technology and legislation are established. Each SQM token has its own smart contract, which is designed specifically for the jurisdiction of the property, and its type and purpose.” The ALT token is “a pure utility token” used for platform fees and purchasing SQM tokens, rewarded to network participants for contributions, and providing holders with voting rights. (It is stated here [https://www.investitin.com/alt-estate-a-blockchain-platform-opens-tokenized-real-estate-for-trading/], however, that “In the future all payment types will be accepted, so fractions could be bought both for crypto and fiat”). It is stated that the listing process includes registration with KYC, analysis and appraisal of the property, expert committee approval, and due diligence. “The transition from a centralized system to a decentralized one must be smooth to mitigate implementation risks. The integrity of the Protocol can allow two parties to make a deal without the intermediation of a third party, or to use a third party when necessary.”

Use of Blockchain Roadmap

Whitepaper

3.8
Whitepaper
Comprehensiveness

Does it cover the full scope of the problem and solution?

3.0
N/A
3 - Covers most key issues; a few holes.
Readability

Is it easy enough to understand?

4.0
N/A
4 - Easy to read and understand.
Transparency

Does it candidly describe and disclose where the project now stands, how much exists and how much still needs to be done, etc.?

4.0
N/A
4 - Informative disclosure.
Business Plan Presentation

Does it contain a viable, comprehensive business plan?

4.0
N/A
4 - Clear, well thought out, realistic.
Technology Presentation

Does it present a well thought out technological architecture? Does it address implementational challenges?

4.0
N/A
4 - Clear, well thought out, realistic.

Whitepaper

The whitepaper is 47 pages in length. The technology plan is presented with moderate levels of detail. The platform architecture is discussed coherently and specific aspects of each layer are discussed. For example, the distributed storage layer is comprised of a customized version of the Ethereum blockchain and IPFS (InterPlanetary File System). The business plan is presented with high levels of detail. A financial model can be downloaded, with is a spreadsheet that includes the future projections of the organization and also discusses the assumptions used to create the model. The document compares Alt.Estate with other real estate investment methods (direct purchase, private equity, public REITs, and crowdfunding. Use cases are included as well as a comparison with traditional investment options. Overall, the whitepaper is fairly comprehensive.

Whitepaper Compliance

Roadmap

3.4
Roadmap
Concreteness

Is there a concrete and practical development plan (vs. just a conceptual vision)?

4.0
N/A
4 - Down to earth.
Feasibility

Is the development plan realistic? Is it based on reasonable goals and timelines?

3.0
N/A
3 - Optimistic.
Vision

Is there a larger, long-term vision?

4.0
N/A
4 - Long term.
Dependencies (services or capabilities)

How available, operational, or trusted are the other systems or capabilities on which the project relies?

4.0
N/A
4 - Available and trusted.
Current Position

Where is the project now, relative to its vision and plans?

2.0
N/A
2 - Critical obstacles ahead.

Roadmap

The roadmap on the Alt.Estate website spans from Q1 2017 to Q1 2020+. The protocol will be developed in two phases: crowdfunding and the development of a decentralized tokenized real estate market. The second phase will “be launched as soon as the necessary technology and legislation are developed, jurisdiction by jurisdiction”. It is stated that by Q3 2018 the beta version of the platform will be released, followed by the acquisition of licenses from initial (unspecified) jurisdictions.

Roadmap Company and Team

Compliance

3.4
Compliance
Token Utility (value through usage)

How much use is there for the token itself (regardless of its value as an investment vehicle)?

4.0
N/A
4 - Distinctive use cases.
Token as Security (tradable instrument)

How valuable is the token as an investment vehicle or financial instrument?

3.0
N/A
3 - Partly; compliance not fully assured.
Token/Smart-Contract Readiness

Is the blockchain infrastructure of the project ready for use? Is there a working prototype or MVP? How long until it is operational?

2.0
N/A
2 - Proof of concept or test platform.
Attention to Compliance Issues

How much attention is given to compliance (via token and ecosystem design, token sale participation, etc.)? Is this issue addressed directly and coherently?

4.0
N/A
4 - Specific, detailed.
Legal Review/Risk Assessment

What kind of legal documentation (reviews or agreements) and risk assessment are provided?

4.0
N/A
4 - Professional.

Compliance

It is stated that the “Alt.Estate Protocol is ready to use within the current legal framework”. However, the legal content regarding this claim in the whitepaper is not comprehensive. There is a disclaimer in the in beginning of the document which spans approximately 1 page. Risk factors are also discussed towards the end of the document. It is stated that ALT tokens are to be considered utility tokens, but “some SQM tokens have traits of securities, and Alt.Estate will go through all the necessary licensing, registration or exemption procedures in the corresponding jurisdictions before any such tokens are sold or traded”. Overall, legal content is fairly comprehensive, however, specific content should be included which addresses the legality of Alt.Estate with respect to the existing regulatory framework. During phase one (crowdfunding), “nominee trust structure” will be used for some jurisdictions, however, SQM can also “represent the shares in SPV without any trust structure”. In the second phase, it is stated that SQM tokens are expected to be legal proof of ownership. There is a lack of content that increases confidence that supports this expectation.

Compliance Token Sale

Company and Team

3.8
Company and Team
Company Stage and Foundation

Is the company already established? Has it raised funds before? Is it mature?

3.0
N/A
3 - Company structure in place.
Background of Lead Team Members

Do we know who they are? Do they have LinkedIn profiles? Do they have solid, relevant backgrounds?

4.0
N/A
4 - Verifiable relevant experience.
Team Assembly and Commitment

Is a solid, fully committed core team in place? Do they have online (e.g. LinkedIn) profiles showing sufficient relevant experience? Is their participation transparent?

4.0
N/A
4 - Fully assembled and committed.
Team Skill Set Relevance

Does the amount of talent and skill in each area seem to fit the project requirements?

4.0
N/A
4 - Well suited to project requirements.
Team Skill Set Balance

Is the team well-rounded (biz/tech/blockchain)? Is there sufficient talent and skill in all areas of required development?

4.0
N/A
4 - Good, sufficient for each aspect.

Company and Team

It is stated that the Alt.Estate team has acquired $400MM of real estate deals in 2016. The core team of 14 individuals are listed on the Alt.Estate website, along with their profile pictures, short descriptions and links to social media profiles. There are individuals on the team with experience working on blockchain-related projects. LinkedIn profiles of the C-level executives contain sufficient levels of detail with respect to previous professional experience. The CEO has experience with business development as a project manager, the CFO was previously a self-employed financial advisor/trader for 4 years, and the CTO has extensive professional experience with lead technical positions.

Company and Team Product

Token Sale

3.2
Token Sale
Raise Amount Max

Is there a clear cap? Is the maximum raise amount modestly sufficient (as opposed to either greedy or insufficient)?

3.0
N/A
3 - Justifiable.
Raise Amount Min

Is the minimum raise reasonable considering the development plan? Are there raise-amount dependent milestones?

4.0
N/A
4 - Reasonable, sensible.
Fund Allocation

Is fund distribution and allocation reasonable and justified?

4.0
N/A
4 - Well defined and reasonable.
Token Allocation

Is the ratio of tokens sold to those kept reasonable? Does it prevent the company from having too much control?

3.0
N/A
3 - Sufficient company/community interest balance.
Media Presence and Following

Is the sale being talked about in Reddit, Bitcointalk, Social Media, Medium, etc.? Is information available and accessible? Is there interest?

2.0
N/A
2 - Minor exposure and interest, or ambivalent reception.

Token Sale

The total number of ALT tokens is not specified (60% is for the public, 20% is for network growth, and 20% is for the team and advisors). Vesting periods are somewhat vague: it is stated that “Most of the team tokens are locked for one year (except for some advisors) and this lock-up is conditional on individual KPIs for each team member”. The allocation of funds is described with moderate detail (31.3% is for online advertising, 17.1% for legal fees, 12.5% for technology development, 10.7% for content and social marketing, 3.3% for brand awareness, 2.5% for finance, 2.4% for office costs, and 2% for other costs). The soft cap is $1MM USD and the hard cap is $30MM USD, where 1 ETH = 100,000 ALT. The public token sale begins on May 16, 2016.

Product

Alt.Estate allows sellers to easily tokenize assets after passing all KYC/AML procedures and approval from an “expert committee”. It is stated that there are 3 locations (apartments) that have already been tokenized. The platform aims to increase liquidity of real estate while decreasing transaction costs while complying to regulations. As a platform that aims to facilitate a service that allows for the trading of tokenized assets, specifically real estate, Alt.Estate faces considerable competition. However, thorough discussion regarding the (blockchain-focused) competitors of the organization are not included in the document.

Category Breakdown
Readiness

Is the product ready for use? Is there a working prototype or MVP? How long until it is operational?

2.0
N/A
2 - Proof of concept or test platform.
Appeal

How appealing is the product? How good or necessary is it? Does it have a distinct edge?

3.0
N/A
3 - Interesting.
Target User Base

Is it mass market or niche?

4.0
N/A
4 - Large audience / wide market.
Competition

Are there many other similar solutions or is this one of just a few, or even one of a kind?

3.0
N/A
3 - Some normal competition.
Innovation

How innovative or inventive is the product, either conceptually or technologically?

3.0
N/A
3 - Partial, a novel approach or aspect.
Product Score:
3.0

Use of Blockchain

Alt.Estate employs a two-token model with property-specific SQM Tokens and platform ALT tokens (both ERC20). Each property listed on the Platform has its own SQM_{PID} (related to the area of the property in square meters). “The SQM token was engineered to be legal proof of real estate property ownership, and integrate with blockchain property rights registries as soon as the necessary technology and legislation are established. Each SQM token has its own smart contract, which is designed specifically for the jurisdiction of the property, and its type and purpose.” The ALT token is “a pure utility token” used for platform fees and purchasing SQM tokens, rewarded to network participants for contributions, and providing holders with voting rights. (It is stated here [https://www.investitin.com/alt-estate-a-blockchain-platform-opens-tokenized-real-estate-for-trading/], however, that “In the future all payment types will be accepted, so fractions could be bought both for crypto and fiat”). It is stated that the listing process includes registration with KYC, analysis and appraisal of the property, expert committee approval, and due diligence. “The transition from a centralized system to a decentralized one must be smooth to mitigate implementation risks. The integrity of the Protocol can allow two parties to make a deal without the intermediation of a third party, or to use a third party when necessary.”

Category Breakdown
Blockchain Development

Is blockchain technology essential? Does it make the solution significantly different and better?

4.0
N/A
4 - Innovative use of blockchain technology.
Disruptive Blockchain Advantage

How disruptive is the introduction of blockchain technology into the product's market space?

4.0
N/A
4 - Generally disruptive.
Need for a Custom Token (vs. BTC or ETH)

Is the token essential or could it be done just as well or better with fiat or Bitcoin?

4.0
N/A
4 - Token is essential to platform.
System Decentralization (besides token)

How decentralized is the system architecture other than the token (e.g., data collection, storage, access, and use, or decision making processes, etc.)?

2.0
N/A
2 - Centralized with some plans to decentralize.
Contribution to Blockchain Ecosystem

How compelling is the solution's contribution to the evolution of blockchain infrastructure and economy?

3.0
N/A
3 - Interesting.
Use of Blockchain Score:
3.4

Whitepaper

The whitepaper is 47 pages in length. The technology plan is presented with moderate levels of detail. The platform architecture is discussed coherently and specific aspects of each layer are discussed. For example, the distributed storage layer is comprised of a customized version of the Ethereum blockchain and IPFS (InterPlanetary File System). The business plan is presented with high levels of detail. A financial model can be downloaded, with is a spreadsheet that includes the future projections of the organization and also discusses the assumptions used to create the model. The document compares Alt.Estate with other real estate investment methods (direct purchase, private equity, public REITs, and crowdfunding. Use cases are included as well as a comparison with traditional investment options. Overall, the whitepaper is fairly comprehensive.

Category Breakdown
Comprehensiveness

Does it cover the full scope of the problem and solution?

3.0
N/A
3 - Covers most key issues; a few holes.
Readability

Is it easy enough to understand?

4.0
N/A
4 - Easy to read and understand.
Transparency

Does it candidly describe and disclose where the project now stands, how much exists and how much still needs to be done, etc.?

4.0
N/A
4 - Informative disclosure.
Business Plan Presentation

Does it contain a viable, comprehensive business plan?

4.0
N/A
4 - Clear, well thought out, realistic.
Technology Presentation

Does it present a well thought out technological architecture? Does it address implementational challenges?

4.0
N/A
4 - Clear, well thought out, realistic.
Whitepaper Score:
3.8

Roadmap

The roadmap on the Alt.Estate website spans from Q1 2017 to Q1 2020+. The protocol will be developed in two phases: crowdfunding and the development of a decentralized tokenized real estate market. The second phase will “be launched as soon as the necessary technology and legislation are developed, jurisdiction by jurisdiction”. It is stated that by Q3 2018 the beta version of the platform will be released, followed by the acquisition of licenses from initial (unspecified) jurisdictions.

Category Breakdown
Concreteness

Is there a concrete and practical development plan (vs. just a conceptual vision)?

4.0
N/A
4 - Down to earth.
Feasibility

Is the development plan realistic? Is it based on reasonable goals and timelines?

3.0
N/A
3 - Optimistic.
Vision

Is there a larger, long-term vision?

4.0
N/A
4 - Long term.
Dependencies (services or capabilities)

How available, operational, or trusted are the other systems or capabilities on which the project relies?

4.0
N/A
4 - Available and trusted.
Current Position

Where is the project now, relative to its vision and plans?

2.0
N/A
2 - Critical obstacles ahead.
Roadmap Score:
3.4

Compliance

It is stated that the “Alt.Estate Protocol is ready to use within the current legal framework”. However, the legal content regarding this claim in the whitepaper is not comprehensive. There is a disclaimer in the in beginning of the document which spans approximately 1 page. Risk factors are also discussed towards the end of the document. It is stated that ALT tokens are to be considered utility tokens, but “some SQM tokens have traits of securities, and Alt.Estate will go through all the necessary licensing, registration or exemption procedures in the corresponding jurisdictions before any such tokens are sold or traded”. Overall, legal content is fairly comprehensive, however, specific content should be included which addresses the legality of Alt.Estate with respect to the existing regulatory framework. During phase one (crowdfunding), “nominee trust structure” will be used for some jurisdictions, however, SQM can also “represent the shares in SPV without any trust structure”. In the second phase, it is stated that SQM tokens are expected to be legal proof of ownership. There is a lack of content that increases confidence that supports this expectation.

Category Breakdown
Token Utility (value through usage)

How much use is there for the token itself (regardless of its value as an investment vehicle)?

4.0
N/A
4 - Distinctive use cases.
Token as Security (tradable instrument)

How valuable is the token as an investment vehicle or financial instrument?

3.0
N/A
3 - Partly; compliance not fully assured.
Token/Smart-Contract Readiness

Is the blockchain infrastructure of the project ready for use? Is there a working prototype or MVP? How long until it is operational?

2.0
N/A
2 - Proof of concept or test platform.
Attention to Compliance Issues

How much attention is given to compliance (via token and ecosystem design, token sale participation, etc.)? Is this issue addressed directly and coherently?

4.0
N/A
4 - Specific, detailed.
Legal Review/Risk Assessment

What kind of legal documentation (reviews or agreements) and risk assessment are provided?

4.0
N/A
4 - Professional.
Compliance Score:
3.4

Company and Team

It is stated that the Alt.Estate team has acquired $400MM of real estate deals in 2016. The core team of 14 individuals are listed on the Alt.Estate website, along with their profile pictures, short descriptions and links to social media profiles. There are individuals on the team with experience working on blockchain-related projects. LinkedIn profiles of the C-level executives contain sufficient levels of detail with respect to previous professional experience. The CEO has experience with business development as a project manager, the CFO was previously a self-employed financial advisor/trader for 4 years, and the CTO has extensive professional experience with lead technical positions.

Category Breakdown
Company Stage and Foundation

Is the company already established? Has it raised funds before? Is it mature?

3.0
N/A
3 - Company structure in place.
Background of Lead Team Members

Do we know who they are? Do they have LinkedIn profiles? Do they have solid, relevant backgrounds?

4.0
N/A
4 - Verifiable relevant experience.
Team Assembly and Commitment

Is a solid, fully committed core team in place? Do they have online (e.g. LinkedIn) profiles showing sufficient relevant experience? Is their participation transparent?

4.0
N/A
4 - Fully assembled and committed.
Team Skill Set Relevance

Does the amount of talent and skill in each area seem to fit the project requirements?

4.0
N/A
4 - Well suited to project requirements.
Team Skill Set Balance

Is the team well-rounded (biz/tech/blockchain)? Is there sufficient talent and skill in all areas of required development?

4.0
N/A
4 - Good, sufficient for each aspect.
Company and Team Score:
3.8

Token Sale

The total number of ALT tokens is not specified (60% is for the public, 20% is for network growth, and 20% is for the team and advisors). Vesting periods are somewhat vague: it is stated that “Most of the team tokens are locked for one year (except for some advisors) and this lock-up is conditional on individual KPIs for each team member”. The allocation of funds is described with moderate detail (31.3% is for online advertising, 17.1% for legal fees, 12.5% for technology development, 10.7% for content and social marketing, 3.3% for brand awareness, 2.5% for finance, 2.4% for office costs, and 2% for other costs). The soft cap is $1MM USD and the hard cap is $30MM USD, where 1 ETH = 100,000 ALT. The public token sale begins on May 16, 2016.

Category Breakdown
Raise Amount Max

Is there a clear cap? Is the maximum raise amount modestly sufficient (as opposed to either greedy or insufficient)?

3.0
N/A
3 - Justifiable.
Raise Amount Min

Is the minimum raise reasonable considering the development plan? Are there raise-amount dependent milestones?

4.0
N/A
4 - Reasonable, sensible.
Fund Allocation

Is fund distribution and allocation reasonable and justified?

4.0
N/A
4 - Well defined and reasonable.
Token Allocation

Is the ratio of tokens sold to those kept reasonable? Does it prevent the company from having too much control?

3.0
N/A
3 - Sufficient company/community interest balance.
Media Presence and Following

Is the sale being talked about in Reddit, Bitcointalk, Social Media, Medium, etc.? Is information available and accessible? Is there interest?

2.0
N/A
2 - Minor exposure and interest, or ambivalent reception.
Token Sale Score:
3.2

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