Diversifying Productive Assets

Everyone knows Warren Buffett’s two first rules but fewer people can cite the rule that every name-brand investor alive agrees is the highest priority in growth: asset allocation. Backed by every camp of financial thought, asset allocation refers to the diversification of a portfolio across different asset classes like stocks, bonds, cash etc. Some people may not think of real estate as an asset class. But because real estate appreciates in value over time like any stable security, the though is not so far fetched. The classification becomes even more appealing when one considers property owners that generate consistent revenue from renting out their asset.

But what about investors that cannot afford to purchase an entire property in order to play the game – certainly one does not need to purchase the Berkshire Hathaway corporation to benefit from it’s growth. Stocks represent a fractional investment in a company. Real estate did not afford such accessibility until the very recent development of fractional real estate investment.

The advantage to fractional ownership of a company comes in the form of dividend payments. Without some mortgage prestidigitation, it is unlikely to realize the same regular payouts from a real estate asset. Rental properties solve this issue to a more substantial degree but it is even more uncommon to hear of a fractional landlord. Until now at least.

Here’s an excerpt from a company that is democratizing the process of landlordship:

Here’s how RealT does it:
Step 1: Fractionalize the Asset
In order for an individual to be able to directly own real estate, it must be priced at a level comparable to company shares in the stock market. Between $50 and $250 is ideal. This makes investment into real estate much less of a life-altering commitment, and much more of a habitual “put your change in the piggy-bank” activity.
Even when real estate asset prices are hundreds of thousands to millions of dollars, there is a huge difference between $0 of investment and $50–$250 of investment. This is especially true when low investment minimums allow people to the ability to make regular additions to their portfolios, and their portfolios begin to compound.
With RealT, properties are fractionalized into shares. Each property is divided into a number of shares that make each share valued at roughly $50–$250 in order to keep real estate affordable for everyone. RealT is able to do this by representing ownership of the property as digital tokens on the Ethereum blockchain…

Step 2: Make it Globally Accessible
Real estate properties are, by definition, a stationary piece of land. Blockchains, also by definition, are intangible pieces of software that exist ubiquitously across the globe. These two things could not be more opposite of each-other.
And that’s why they are so complimentary. Blockchains can make any real estate property accessible to anyone with an internet connection. Reducing the costs of the asset in step 1 is important, but equally important is enabling world-wide participation. With a blockchain, you can fractionalize the asset into affordable units, and then disperse these units across the globe, so that everyone can gain access to real estate investments.

Step 3: Pay Out Rent
Real estate pays you to own it. REITs, real estate hedge funds, and other real estate exposure instruments are great, but none of them put cash in your pocket. The benefit of owning real estate is that you get to add another source of income on top of your pre-existing one.

To learn more about the fractional real estate asset class secured on blockchain check out realt.co.

What Blockchain Spells for Real Estate Investment

Real estate prices are climbing beyond the risk tolerance of the average investor – unless blockchain technology has something to say about it.

In a recent profile on newsbtc.com, a unique venture built on tokenized real estate assets painted a different picture for the future of property investment.

RealT, the innovative new platform aiming to simplify global access to U.S. real estate tokenization and investment, has launched with the announced offering of its initial residential property in Detroit, Michigan, as well as ambitious plans to expand to other U.S. cities in the coming year. The platform will also eventually function as a marketplace for current homeowners looking to tokenize and sell their own real estate assets. Powered by Ethereum, RealT offers legally compliant ownership of tokenized real estate, providing investors around the globe with a more efficient route into the U.S. property market and providing asset holders with direct access to liquidity.

RealT Launches New Asset Tokenization Platform to Increase Global Access to U.S. Real Estate Investment – newsbtc.com May 16, 2019

This is an unprecedented opportunity for international investors who are typically met with years of red-tape and prohibitively high risks when attempting to invest in American real estate. To pilot the program, RealT has intentionally selected accessible real estate markets to lower the capital risk for prospective investors.

To launch the platform, RealT has chosen Detroit, Michigan, as the first city where it will offer tokenized property investment due to its comparatively low property prices and vast potential for growth. After decades of urban decay, new investment is now driving urban regeneration in the area. Improving real estate liquidity, RealT will enable investors to engage in fractional ownership of Detroit homes and generate passive rental income. To analyze the value of real estate and opportunities for growth RealT’s team closely monitors the Capital Improvement Plan (CIP) for cities around the United States. In this way, RealT aims to provide users of its platform with access to properties that provide significant investment potential.
“The recent influx of investment into Detroit, most notably a $4.5 billion USD injection by Fiat Chrysler that will preserve and add up to 5,000 jobs in the city, is emblematic of a period of renewed growth. RealT is proud to be among those contributing to the continued redevelopment of the city by offering a means of foreign investment into the Detroit housing market which will help to further develop the economy and drive urban renewal efforts. We’re delighted to launch our platform in the Renaissance City and contribute to its ongoing revitalization. We’re also planning on expanding to additional U.S. cities later this year and are passionately committed to making U.S. property investment a more realistic prospect for individuals around the world,” concluded Jacobson.

Read more about crypto real estate at newsbtc.com

By leveraging the distributed ledger, the days of complicated title research and insurance, convoluted escrow requirements, and countless middlemen are numbered. The cryptocurrency community may attract doubtful sneers from traditional investment firms today but as the benefits of blockchain for the beloved real estate market pile up, the conversation is sure to shift.

Disrupting the Cell Phone Marketplace with Transparency & Cryptocurrency

A new emerging company is looking to change the way you might purchase your next phone. Tired of getting roped into long contracts to pay off the price of your phone over time? Whether it be new or pre-owned phones, TessaB is aiming to to provide users the real value of their mobile devices all backed by their new mobile blockchain network. Under the TessaB blockchain, users can track their devices and see the history of ownership and price. Between their blockchain and the TessaB mobile app, this startup is a institutional blockchain investment that mobile users can really get behind. Read more about their mission from their executive summary below:

The smartphone industry has continued to evolve throughout its relatively short lifespan to meet the needs of an ever more demanding customer base. This has driven improvements in hardware, sensor suites, user experiences, and integrations with the world we live in. To match these desires, the industry has turned to shorter release cycles, price increases, and introduced new payment and protection systems designed to lock a consumer into a predefined upgrade cycle, removing flexibility and optionality. This industry model, instead of driving more consumer adoption, has had the opposite effect. Consumers now own their devices for longer than ever and increasingly turn to preowned devices as a solution to price increases, driving increased costs to industry stakeholders. IGWT, backed by PCS Wireless, a leading company in the secondary mobile device market, is building a better device ownership experience and is providing the resources to develop the infrastructure surrounding a customer friendly ecosystem for the new and pre-owned smartphone marketplace, bypassing the traditional business models currently deployed within the industry. The TessaB Ecosystem will leverage the ubiquity of the smartphone to not only deliver convenience but savings and accountability throughout the smartphone ownership experience. TessaB is developing a new asset-backed model to leverage the current and future value of a consumer’s mobile device. Anchoring the TessaB Ecosystem will be a trusted distributed ledger tracking the status and condition of participating smartphones throughout their lifecycle. Users will no longer remain in the dark about the true value of their smartphone, how this value changes over time, what it costs to insure, and more. Through the utilization of the smartphone as the primary touchpoint, IGWT looks to deliver an accessible onramp to the first mobile-centric ecosystem of commerce around mobile devices and related services powered by the TessaB Digital Asset (“TSB”), the first customer friendly cryptocurrency that delivers on all of the conveniences expected in a modern medium of exchange.

– TessaB Whitepaper

If you are starting to feel like the only way to get the best new phone is by signing up for a lengthy plan through your provider, think again! TessaB might have a solution for you that’s just around the corner.

Blockchain in the Real Estate Rental Market

This week marked a new development for the real estate rental ecosystem as The Kahuna Group announced their new blockchain-driven real estate rental project called the Kahuna Platform. Read more about it here in their press release.

Announcing the Kahuna Platform, Optimizing Tenant and Landlord Relationships With Ethereum

Kahuna Platform aims to create secure, sovereign and portable rental profiles for tenants, and streamline the onboarding and payment process for landlords

NEW YORK, NY — MAY 12, 2019 — Real estate developers, The Kahuna Group, announced its new project, the Kahuna Platform, which aims to change the way everyone within the real estate rental ecosystem leases, rents, and earns using blockchain technology. The Ethereum-based solution Kahuna develops will give tenants a fully portable, secure, and verifiable rental profile called the Kahuna Score, reflective of their rental history and informed by actions and data not available to most credit agencies, such as rental payments. This Score, along with other facets of the platform, seeks to streamline the search, onboarding, and tenancy stages for both landlords and tenants around the globe.

“ Inefficiencies in the real estate rental industry (RERI) are pretty glaring to even casual observers,” says Kahuna Group partner Steven Whitworth. “Blockchain based technology offers a great foundation to address these challenges and we believe the Kahuna platform is an ideal structure to build on that foundation..”

With the development of their digital platform, Kahuna introduces Behavioral Mining©, a major contributing data source to a tenant’s Kahuna Score, affected by recurring activities such as rent-payment timeliness. Tenants earn digital assets called Kahuna Tokens (KNA)  in exchange for reaching binary milestones offered by the platform. User-generated profile data aggregated by users and Kahuna will be stored on the public Ethereum blockchain within Kahuna’s private network. Kahuna’s goal is to make the Kahuna Platform the first and most robust blockchain-based platform to aggregate immutable data from the RERI for the benefit of both landlord and tenant.

This announcement at Consensus NYC 2019 marks a significant milestone for The Kahuna Group, as well as for the blockchain community and real estate industries. The project overview site is live and available for review, along with their whitepaper and other project-related documents, including documents related to their open security token offering.


The Kahuna Platform is a project of The Kahuna Group, a leading real estate developer whose team boasts over a century of experience in real estate and logistics. Together with Bunker Capital, The Kahuna Group is developing The Kahuna Platform to enable tenants to build and aggregate their rental history, regardless of their country of residence, and give landlords robust information by which to determine tenant suitability coupled with a streamlined payment system.


Bunker Capital is the premier blockchain consulting and advisory firm that powers the growth of game-changing tokenized businesses and decentralized platform innovation. From token economics, project marketing, smart contract development and more, Bunker Capital partners with clients from end-to-end to build intelligent solutions with global impact.

Media Contact: Michael Wong @ Bunker Capital, mwong@bunkercapital.com

Company Contact: Steven Whitworth @ The Kahuna Group, swhitworth@kahuna-group.com

The international benefits of cryptocurrency

In an age where efficiency and trust are paramount in doing business, cryptocurrency has been regarded favourably by world leaders who see the beneficial role it will play in the future of international trade.

There are several advantages of using cryptocurrency given that traditional transactions are facilitated through centralized intermediaries like banks, governments, and commerce platforms. Due to their centralized nature, these middle men are the targets of hacks, which has taken place with growing frequency and concern as of late. Traditional banking involves lengthy processing times, high bank fees, and unfavourable exchange rates; it is also inaccessible to a large portion of the world’s global population.

Institutions are embracing change
The rise in safer coin investments and institutionally backed cryptocurrencies has lead to widespread adoption and investor confidence in the blockchain future.

In November 2018 at the Singapore Fintech Festival, Christine Lagarde, Managing Director of the International Monetary Fund, spoke about the potential benefits of cryptocurrencies. In raising the case for central banks to issue a “state-backed token, or perhaps an account held directly at the central bank”, Lagarde mentioned that “various central banks around the world are seriously considering these ideas, including Canada, China, Sweden, and Uruguay. They are embracing change and new thinking—as indeed is the IMF.”

Cryptocurrency reduces the cost of doing business
Cryptocurrency reduces the traditional hassle of dealing with fraud risk, fees, and time when it comes to doing international business. It offers a quicker and less expensive way of mitigating risk and processing transactions globally.

Avoid risking losses due to foreign currency conversion
Foreign currency conversion involves incurring transaction fees. Furthermore, processing time for cross currency payments typically take a number of days, during which foreign exchanges rates fluctuate and can cause losses to either party.

While businesses typically use FX hedging products to protect against potential losses, buyers and sellers can avoid risking losses due to foreign exchange fluctuations if they agree to transact using the same cryptocurrency. The speed of the cryptocurrency settlement significantly reduces the effect of adverse exchange rate changes on buyers and sellers.

Furthermore, businesses can proactively manage their cryptocurrency accounts by converting when rates are favourable and holding funds for later use.

Image: Investopedia

Digital trust and authentication incentivizes trade
Cryptocurrency offers a digital way of validating transactions, allowing for greater consumer protection and confidence in trade. Lowered uncertainty allows for individuals to purchase and sell goods & services with greater ease of mind. In regards to consumer protection, Lagarde mentioned that a “digital currency could offer […] a backup means of payment”, potentially reducing system reliance on payment providers.

With increasingly heightened adoption, consumers are preferring digital means of payment for security, ease of mind, and convenience. Entrepreneurs and organizations are beginning to view accepting payment in the form of cryptocurrency as a way to appeal to their customers and gain a competitive advantage.