There are certain things in this world that make a lot of sense together: milk and cookies, sunny days and hammocks, long drives and convertibles. Then there’s what RedSwan CRE has done. This commercial real estate investing platform, which claims to be the leading tokenization platform for accredited investors, has put two crowdfunded projects up for buy-in using Dogecoin.
Yes. So Doge. Much Coin. That’s the one.
The two properties, the LakeHouse Oakland and the Apollo Apartments, are currently accepting accredited investors who have at least $1,000 in dogecoin to offer up. Just to put that into perspective, as of October 19, 2021, that would be approximately 4,167 coins (Dogecoin is valued at 24 cents right now). But that’s just the starting investment; you can actually invest up to $43,500,000 in LakeHouse, for example, or approximately 181,250,000 dogecoins.
Digital tokens and gimmicky press releases
The truth is that RedSwan is actually doing something pretty interesting, but it has absolutely nothing to do with Dogecoin.
You’d never know it from the press release that’s been catching everyone’s attention, though. In it, CEO Ed Nwokedi explains the reason for accepting Dogecoin. "I[t] is on the cusp of transitioning from a 'meme coin' to legitimate institutional and transactional use cases. With this initiative, RedSwan CRE is doing its part to accelerate that evolution by providing educational value towards building wealth."
Now, if it were me, and I were seriously looking to extend my blockchain-based business that already deals in digital tokens that represent ownership shares, I’d at least offer BitCoin or Ethereum options. There are far more people who hold these coins and they’re a far more commercially accepted cryptocurrency. Plus, you don’t have to present ridiculous piles of them in order to buy literally anything more than a virtual stick of gum.
But that’s not the case here. Neither of the aforementioned common crypto currencies is part of the platform. But USDC is. What is USDC, you ask? It’s a type of cryptocurrency called a stablecoin, and for every American dollar issued in USDC, there’s a dollar in an account somewhere to guarantee it, allowing the coin’s value to remain stable. Hence the name.
Unlike raw crypto currencies, stablecoins have a value directly pegged to a currency. One dollar in USDC today is worth a dollar tomorrow. It’s an ideal digital solution for modern blockchain-based transactions.
The Millionacres bottom line (and the actual cool thing about RedSwan)
The Dogecoin stuff really feels like a publicity stunt, which is totally unnecessary because what RedSwan does every day is actually really cool. Yes, it’s a crowdfunding platform, where projects of all kinds are funded by accredited investors, but everything they do is based in the blockchain. So, transactions are recorded in their blockchain ledger, and using the digital currency USDC (the stablecoin mentioned above) is the norm.
When an investor is interested in a project, they go to the site and pledge to purchase so many tokens, which are worth $1,000 USD each. These tokens are held for a minimum of a year, after which time, the plan is to make them available to sell or trade within the RedSwan platform to other accredited investors. This functionality does not appear to be online yet, but the website states it will be coming in late 2021.
Of course, they don’t guarantee the tokens will be worth the $1,000 USD that was originally funded because the projects may lose or gain value, like any real estate project. But the fact that investors can swap these tokens as easily as baseball cards within this platform due to the blockchain engine that supports it is actually really incredible.
No waiting, no getting permission to sell a share of a property, no closing, no nothing. You simply put your trade up and wait for another investor to decide they want it. The transaction is fully digital, and nearly instant. The only delay is the wait for the blockchain ledger to verify the transaction. Then the investor is on their merry way, either investing in a different token for a different property, or they’re cashing out their USDC stablecoins for some new project (or a shiny new Tesla).