So hello everyone. My name is John and today I’m presenting the Washington Elite. It’s the premier platform for news and entertainment in the international blockchain community. So today I’m sitting here with Helena who is the adviser for Kodo Assets, and I would like to speak with you about the project and about the market and how you feel about all of thisl. First of all, can you please tell me a bit more about the project and what brought you here to Blockchain Economy?
All right, so basically we are a real estate organization platform and we are launching our first project, right? We are tokenizing real estate, commercial real estate in San Paulo, which is the financial heart of the whole Latin American business wise. And we are basically taking this dividing into 5,000 tokens and each token will be sold to each other holder for $140. So basically, you being titled, you will have the opportunity to invest in real estate in Brazil for a really tiny price. Because we are going to fragment the property. The token holder will be entitled to have two rights. Basically. The first one, the dividends that arise from the property lease, we are estimating it to be about 6% API in USDC, paid directly in the token holder’s wallet. And also the capital gains, because we have such a devaluated real estate market in Sao Paulo, if compared to similar cities like Lisbon, Chicago, we realized that there’s much room for growth in terms of price of real estate. So the capital gains should actually happen if we sell the property. Basically, we will also be paid to the token holders.
So if you just like to sell the property, how does this work particularly? So imagine that everybody bought one token. We have 2.5 thousand people, if I’m not mistaken. Right. I’m not sure how many users let’s say that every person bought one token. We have 25,000 people. So how can 25,000 people agree to sell a house? If sometimes families can’t agree to sell their own house they’ve got four people.
So, as I mentioned, we are a platform. So we are planning to launch many real estate projects in the future, right? The first one that we are launching, we are only granting two economic rights, which are dividends and capital income. We are not putting any layer of governance there.
Because we do realize that may be tricky. Right. So in the future, whenever we are doing this launch now, we are doing the token sales. But once we move forward, the whole idea is to put a layer of governance there and basically that will be on a blockchain vote. People are going to vote for should we receive an offer to sell the property? They should Vote. We are going to state what the percentage, et cetera, but they should vote so they think that’s of their bid or not.
Okay, that sounds kind of reasonable. Yeah, sure. So I would like to ask you for how long are you in business? For how long you’re developing this project?
Well, I’ve been to Crypto Space ever since 2012. So ten years now.
You’re developing this project?
No, I’ve been in this specific project ever since the end of last year. Beginning of this one, we have been structuring, and since it is a security token and we are regulated by the Bahamas law, we have much more stricter rooms to fill. You know? It’s not utility token that you only need the technology layer and the white paper to launch. We also have lots of specifics to go through, but we are almost there to issue that by the end of October.
Okay, so you want to launch by the end of October? Or, you want to finish the white paper and the legal part to the end of October?
No, it’s almost that, actually. We are launching the token sale by the end of October.
Okay, yeah, sounds good. Yeah. So what is your main objective at this conference?
Well, basically we have been doing a road show. We have been to Rio last September, we have been to Singapore now last week, and we are here in Dubai for two events. We are also going to be in Argentina for … next month.
Can you please repeat?
So what is your main objective at this conference?
All right, so we are basically doing a road show. We’ve been to Rio de Janeiro last month. We are here, been to Singapore last week, Dubai this week, Argentina next month, and also London. The idea right now is to validate the product market fit.
Because whatever we are trying to resolve, we see what’s the pain of the market, we see how the organization can solve most of it, but we are trying to see what’s the public reaction to it. And the idea is not to sell the token right now because it’s not even on sale yet, but to see if there’s no interest from the public and the questions that they raise if they make sense to us in our business model on the long term.
Do you have some sort of a white list that people can fill out when you’re doing the roadshow to kind of get into the presale? or something like that.
Yeah. There’s our website kodosasset.com. You can enter there and put your contact details to receive the white paper once it’s released.
Okay, sounds good. So I understand that with your business model, there are many competing companies around the world, but specifically in South America and maybe in Brazil. How is your competition and what makes it different?
Well, basically we understand there are some I’m not even going to say competitors because we have a key difference from every other project, real estate project that we’ve seen. We are actually going to transfer the tokens to the token holders. We are not going to hold them in our platform. So basically you’ll be able to trade. Should there be a secondary market, you’ll be able to trade your token.
So let’s say for instance, it’s been one year and the economy in Brazil is really great. For some reason, real estate prices have increased like 30% and it’s likely to happen, I’m not kidding. So for some reason there’s a secondary market. Whoever is trading and is aware of that may want to purchase the token because it’s seeing what’s going on in Brazil and it’s saying that whatever the token worths now, it should worth more, right? That’s how they can resell on the secondary market and make some gains and make some gains on trading. We are going to do our best efforts to list that on Dexs because we are a regulator token, so we have some restrictions to list it in regular exchanges like Binance or etc. But the way we see it, the whole idea is that we empower people with their assets and most of the projects are not doing that right now. You can purchase a real estate token, there are some like two or three alternatives to that, but you have to hold your token in their platform and that’s it. You may also get some dividends, but that’s it. What we are doing is not like that. We are empowering people and letting them pray. And that’s the whole idea. We want to see how far the market goes on Fortifying Real Estate in Brazil because we do know that’s really evaluated, as I mentioned to you in Lisbon, it’s quite surprise in Chicago, it’s quite surprise.
Don’t you think that the popularization of a technology that you are building can drastically increase the price of real estate in the market where you enter? I’ll elaborate on what I’m talking. So like, one of the main factors that drive the real estate prices in the US and England and South America up is the mortgage. Because the mortgage allows you to get into real estate not for $500,000, but instead with a down payment of $50,000, basically, and you are doing much more. You can now get into real estate. Instead of paying $500,000, you can pay $150. And so basically because of this, demand increases drastically and this could lead to increased prices of real estate.
That’s the way to see it.
The thing is you’re buying a fraction of it, right? You’re not purchasing it’s not the same as the example that you’ve just mentioned.
Because you’re not making a down payment. You’re not actually buying a whole property for $140, you’re buying a fraction of it. But the way I see it, we are bringing real estate to publicly trading with the tokens. So the market is the best one to put the price on it. And what we see currently in every real estate market is that there is a market, but there’s no liquidity. And because of the lack of liquidity, the prices are dramatically affected. What we are trying to provide the real estate is actually the liquidity is less so the market can actually certify it for how much it’s actually worth.
because if you take a look, real estate is pretty singular in that sense because if you take a look we live in planetar and the amount of land that is available is limited. Yeah, so to put a price on that is not an easy task.
and of course I do understand your point on mortgages but maybe whatever real estate works right now everywhere is not what it should be worth. Maybe it should work more like the market decide on that.
That’s the way that I agree with. I think the market should decide.
Yeah. Okay so another question, how are you finding this conference and is it meeting your objectives and what is your favorite part?
Yeah, we just arrived like 2 hours ago so I didn’t have the time to go through all the panelist and the exhibitors and of course the conferences. But our objective here, as I told you, we are regulated token. We are not going to offer the token offer to US citizens or to Chinese or all of these countries. But we do need to check the temperature of the water. We need to check people from here, if they find it appealing, if they like the solution that we are proposing in a way that we can even reshape our business in a way that we can attend better to the public expectations. In that sense of this roadshow that I mentioned to you has been like a great lesson to us. For instance, the government that I just mentioned to you is something that we didn’t think that investors would mind. But because we have DAOs and all the technology available in Blockchain and we are able to do so, we realized that investors would appreciate it to have a say on whether we are going to sell the real estate or not. Or even if you go deeper, if we have some cash balance, if we’re going to do some increments in the property, if we’re going to build a pool for you to worth more let’s say, or if we’re not going to do anything or to decide whatever is going to be done with the money, they would like to have that. So we are already reshaping the next project to contemplate that as well. So it’s been a great experience basically. And the idea here specifically in the Blockchain economy summit is to check on this specific area, how is the reaction and what are their inputs on our project and our business model.
So basically your main objective is to meet with the community, ask people who might be potential clients, investors and partners, see how they feel about the project, see what ideas they can bring to the table, etc.
And then build it together. Right? Because if you take a look at any blockchain project. That’s the whole point. You’re building your business with people, not two people.
and because we have brought in technologies and they allow us to do so, that’s what we need to do.
Obviously, that is a very good way to do things and speak about things.
So where do you go from here? What do the next three to six months work for you?
All right, so we are launching the token sale by the end of October, hopefully, and probably, but should everything go smoothly, that’s what’s going to happen. We are keeping the tokensale live for about six months. We are not so sure how hard it will be to have the funding all funded because it’s a really tiny project, but it’s our first one as well. And being crypto for ten years, I know how hard it is for people to believe in you and that you’re a serious business and that you’re actually trying to put something together to give benefit to the people. We do know we are facing something really tough because we are new and it’s hard to be new at any market, specifically on crypto market. But should everything go smoothly, as I mentioned, we are also doing the tokensale like 100% concrete and starting to actually we have the property already, so it will be 100% ours, and we will start to manage it and prepare for the second loan as well. And for the second loan, we are talking about a token that may have some governance there, at least basic governance and some more specifics to go through.
Okay, a question to you. I think maybe somebody already asked you this question, but are you thinking about partnering and collaborating with lending protocols? As a token such as yours can be very widely used as collateral because it’s backed by real estate.
Yes, we have been through some possibilities on financial instruments using our token, for sure. And since that’s the key point, letting people have their token instead of holding in platform, maybe they decide to do so and they are able to do so, and we don’t even know because that’s a decentralized market. Right. Okay. From our side, we have been talking about some types of financial instruments, and definitely the one you mentioned is one of them.
So if somebody from a lending protocol is watching us and you would like to collaborate, you’ll have a line of contact.
Yeah, for sure.
So can you please share your website and social media and how do people get a hold of you?
Sure. That’s Kodoassets.com. That’s a website. And also our social network is Kodo Assets. K-O-D-O Assats. Basically that.
Sounds very good. So, Helena, thank you so much for participating in this interview it was a lovely talk. The market of fractionalizing real estate and crypto real estate is absolutely fascinating. I don’t know what you think, but in my opinion, it will change the world the same way mortgages change the world. I’m a big believer in this. And thank you guys for watching, and I would like to see you again soon.
Thank you so much. Bye.