Smartlands is a platform for new generation of low-volatility security tokens. The platform will apply blockchain technology to solve problems typical for classic financial markets and also offer an infrastructure for Security token offerings with full regulatory compliance that protects investor’s interests.
Smartlands is one of the smaller ICOs out there, the platform managed to raise the measly $1 700 000 dollars in less than twenty days.
To start off, companies that want to tokenize their assets are audited and undergo legal due diligence which is operated by the Smartlands platform. After that, the token issuer enters a collateral agreement with an escrow company to have the tokens secured with assets. The issuer is then able to attract investments by offering security tokens and selling them on the platform. Security tokens are traded on exchanges and the trading company periodically distributes a percentage of its profits to token holders.
For the real estate industry, each token is backed by 0.001 square meter of commercial property. Token holders are rewarded with a percentage of the rent payments form the tenants and profits are used for acquisition of new or upgrading existing buildings. The solution eliminates any middlemen and the fees associated with them, allowing investors to participate purely peer-to-peer, with an expected 8-10% return on investment.
For Manufacturing, each token will be backed by bonds secured with the company’s assets. Token holders will be rewarded a part of the revenue of the company, and the proceeds gathered will go towards acquisition of new equipment and upgrades required for production of new goods.
For Agriculture, each token is backed by 1 square meter of a sweet cherry orchard. Token holders will be rewarded with revenues from the larger, well managed orchards. Profit will go towards acquisition of poorly-managed orchards and create higher cash flow.
For Private shares, tokens are backed by the private shares of the company. Token holders are rewarded with the profit of the company with it expanding in new markets. Proceeds will go towards marketing, establishing new offices and further development of the company’s products.
Smartlands supposedly already has tokenization tests on all of the use cases mentioned above: A cherry orchard in Spain, a Fintech company in Norway, a real estate project in the UK and a factory in Israel.
All those tokens will be issued on the Stellar-based Smartlands decentralized exchange.
Smartlands has some good ideas in mind and the technology behind it is solid. However, it seems a very utopian in nature. The question stands of how many businesses will actually bother to integrate it over conventional methods of raising funds. Also, the team seems quite questionable and there aren’t any well-known, reputable names representing Smartlands.
Smartlands is a decent project. The platform seems to be working with real world businesses already involved in tests. The future will tell if the platform will manage to market itself in a proper way and establish a big client base.
