Can blockchain democratize the real estate space?
A new player in the Fractional Ownership space - FOHO is using the blockchain to bring transparency and trust.
Investors have been inundated with advertisements on social media over the past few months for fractional investments in Real estate - mainly in the commercial space. However, challenges still exist and investors need to introspect on the transparency, governance and overall control that investors are able to exert on fractionally owned assets. A recent story by The Morning Context on one of the prominent fractional ownership platforms highlighted glaring examples of self dealing and lack of transparency in multiple transactions on the platform giving rise to serious doubts about the veracity of data and the trust that investors can impose in such centralised platforms. In this context, FOHO Holdings - a Canadian startup that has used the
Ethereum blockchain to build an open marketplace for fractionally owned assets is probably a glimpse of the future. On the blockchain, ownership of the assets can be verified, movement of shareholders inside and outside can be tracked and rent payments can be independently audited and verified. Users can also challenge assumptions, change the property manager and also vote to liquidate the property based on a smart contract that is not subject to human intervention or control..
FOHO is an ecosystem that was built by its co-founders Vijay Thomas and Roshan D'silva, with the aim of building a blockchain-based transparent and trust-incentivizing system that uses the wisdom of crowds to uncover deals, while holding all market participants accountable, thus democratizing real estate. FOHO also has a higher tier of users called the Sponsors who are larger investors capable of providing oversight and due diligence. Every deal has to attain sponsorship before it is visible to retail investors and sponsors have to subscribe to 10% of the value of the property and remain locked in for at least a year.
The ecosystem is based on fractional sharing of real estate rentals and experiences with fractional ownership of residential and commercial real estate coming soon. Thus, FOHO participants can now access world-class properties at a fraction of the price. The 4 pillars of the FOHO Ecosystem include FOHO Coin, FOHO Haus, FOHO Work and FOHO Club. FOHO Haus is a blockchain-based residential real estate marketplace wherein people can buy and sell fractions of residential property. FOHO Work mirrors the same working model of FOHO Haus, the only difference being, while FOHO Haus is involved with residential properties, FOHO Work deals with commercial properties like office spaces, plantations etc. It enables people to have access to workspaces through cryptocurrency. FOHO Coin is the lifeblood of the FOHO Ecosystem and enables participation in some parts of this Ecosystem. Lastly, FOHO Club is where people come together to share usage of an asset or experience. FOHO Club would be launched next, followed by FOHO Haus and FOHO Work in the future.
The FOHO Coin will be based on the ERC20 Ethereum standard and participants can purchase FOHO Coins in a variety of Fiat and Crypto-currencies. The private sale began on the 1st of June. The IEO is set to launch on the Ascent by Bitbns Launchpad on the 27th of July 2021 with trading to commence on the 15th of August - an appropriately chosen date as FOHO started operations in 2019 in Goa, India. The FOHO team aims to liberate Indian Real Estate Investors and give them the freedom to build a diversified portfolio of global income producing assets.
Link to Bitbns IEO Launchpad page:
Link to Ascent IDO page: https://launchonascent.com/#/listing/5
Disclaimer: This is a company press release. No HT journalist is involved in creation of this content