Black Tie Digital is a market-defining leader in merging legacy platforms, industries, and marketplaces with distributed ledger technology. The Australian-based firm recently announced the launch of its B4Real portal to bring trust and frictionless transactions to real estate.
Pioneering the union of the new world digital economy, B4Real is integrating the best of the crypto market with the world of real estate, allowing investors to diversify their portfolios into an attractive, stable asset class.
In the face of incredible crypto booms and busts and the ever-increasing demand for real estate, B4Real is creating a new way to invest in a sustainable future while also driving a profit for its users.
Watching the trends in the crypto market and real estate, one cannot help but notice parallels between the two assets. For starters, the unprecedented buoyancy in real estate is matched by the excitement in cryptocurrencies, which continue to grow despite frequent crashes and sell-offs. Crypto prices may have tumbled, but many currencies are still up significantly over the past few years.
Bitcoin price, for instance, has grown from barely above zero in 2009 to a mind-boggling $30,000 at the time of writing. Altcoins such as Ethereum, Ripple, and Tether now constitute around 60% of the total global market cap – a global market cap which translates to over a trillion dollars.
All the while, people’s interest in crypto has skyrocketed. Crypto is seen as a haven for those investors who feel that the traditional financial sector is imperfect, unstable, or even rigged.
While real estate dwarfs crypto in total size, the strains that run through them both are quite alike. Just like crypto, real estate is seen as a haven for investors looking to lock-in value and manage risk.
However, normal, working families are being priced out of the market by the often-predatory behavior of large financial institutions – such as swaths of houses to either convert to rentals or to arbitrage over time. This perhaps explains why nearly 40% of millennials see investing in crypto as a sound alternative to investing in real estate.
It’s high time these two asset classes met to build a friendship.
According to research by YouGov, one in six Australians hold cryptocurrency – and among millennials, that figure is two in five. Furthermore, millennials increasingly see crypto as an easier way to save for a deposit needed to acquire property. Given a choice, many would want to spread their nest eggs across different baskets.
B4Real is a trusted, secure marketplace where crypto investors can diversify their portfolios by converting their digital currencies into real-world properties. Similarly, registered developers, agents, and other industry participants can utilize the platform to sell properties to crypto holders, or to issue regulatory-compliant tokenized real estate assets.
The B4Real has zero costs for buyers to use, and generates revenue from fees charged to real estate professionals who will use the platform to sell properties.
In addition to buyers and sellers, B4Real will be supported by lending partners who can offer under-collateralised crypto-backed loans from trusted, institutional sources at market-competitive rates.
That way, cryptocurrency holders who are unable to access traditional financing (and thus would usually find themselves locked out of the housing market) can use B4Real to buy into the Australian real estate market.
B4RE is the utility token that powers the B4Real platform. The tokenomics is set up so that 10% of fees are automatically transferred into a secondary holding wallet. The tokens are then sent to exchanges and liquidity pools on DEXs for swapping. Any resultant LP tokens are sent to a restricted secure multisig wallet. Removing tokens from supply in this manner helps reduce the potential impact of slippage and ensures healthy levels of exchange liquidity.
B4RE enables the exchange of value on the platform as follows:
- Vendors on the platform will pay between 30-40% less in fees when using the B4RE token. The same is true of both premium advertising costs and sales commissions.
- Buyers stand to benefit from lower interest rates by using B4RE as part of their collateral when seeking loans. By holding B4RE tokens, buyers may also gain exclusive access to various incentives, including reduced or removed stamp duty, furniture packages, renewable energy upgrades, and more.
- Importantly, all holders of the B4RE tokens will also be given early or exclusive access to off-market property listings, as well as preferential status when applying for any fractionalised property portfolio token offerings.
Black Tie will be launching an initial decentralized offering (IDO) for $B4RE on Polygon blockchain.
As part of the Progressive Investment Management house of brands, Black Tie Digital has an inherent advantage when it comes to helping pioneer the nascent Blockchain-as-a-Service industry. Its sister brands – BBX Global, BConnect, and Deposit Solutions – represents over 110,000 businesses globally as the world’s largest reciprocal trade communities and one of the earliest proponents and instigators of alternative currencies.