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South African start-up ProsperiProp aims to use cryptocurrency to help ordinary people take part in the $200-billion investment property opportunity.
The company, which opens its initial coin offering (ICO) on Friday 8 September 2017, will allow people to buy into some of the world’s top performing property investment portfolios from just two US dollars.
The company has created a new cryptocurrency called TREE; a name that stems from the belief that real wealth should grow like a tree. Each TREE token represents a micro percentage ownership of property share portfolio, and its value is driven by share dividends and capital growth.
Rather than waiting for the TREE tokens to launch, interested parties can take part in ProsperiProp’s ICO by buying PROPX tokens, which own a share in the ProsperiProp global business.
Funds raised during the ICO will be applied to fund the business, set up a special purpose vehicle (SPV), and purchase investment assets. So ProsperiProp won’t have any loans, but will raise the start-up capital from an ICO.
With these elements in place, the TREE tokens will be created, marketed and sold around the world. The value of the TREE token will increase steadily over time as SPV asset values appreciate and dividends are collected.
Income generated from the sale of the TREE token is used to replenish the crowd fund. Once replenished the capital is either used to purchase more assets in the same SPV or start a new SPV. Either way, the value of PROPX should increase with every iteration.
ProsperiProp is headed up by entrepreneur and technologist Llew Morkel. The team also includes investment pro JB Smith, management strategist Thembi Kahimbaara, and cryptocurrency aficionado Ernst Naude.