SQUAREX - transformation of cryptocurrency into real square meters

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10,000 ETH

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Mar 5, 2018, 12:00 AM

Launch Date

MOTTO

We are creating SquarEx platform to change the paradigm of real estate market and provide everyone with the opportunity to become a property owner anywhere in the world.

PITCH

SquarEx is the first full cycle ecosystem for real estate developers and contributors based on blockchain technology. It uses smart contracts and covers every stage of construction process - from developers' documentation to lease, loan and completion. Our technological solution allows SquarEx to enable everyone to become a property owner, by purchasing a discount coupon for cryptocurrency. Moreover, there is no set minimum amount of purchase, bureaucracy or fraud risk.

SQUAREX USP 

●   Buy, sell, rent and lease property anywhere in the world absolutely safe
●   1 click to become a property owner
●   No minimum limit of purchase size, it’s possible to become a property owner having only hundred dollars.
●   Having bought property in cryptocurrency owner can utilize it.
●   Contributors can influence construction if they are willing to become curators. Transparency and control of all construction stages is provided by smart contracts.

VISION

SquarEx is created to open a new age in construction and real estate contribution. Our aim is to solve current real estate market problems and to transform properties into convenient, attractive liquid assets.
The current state of fraud in construction and real estate deals is a strong argument for the use of trust-building technologies like blockchain and smart contracts.

Squarex – is a safe ecosystem for purchasing realty providing comprehensive facilities including DEX SquarEx, DAO SquarEx and SquarEx smart-construction platform.

Moreover, Squarex changes the paradigm of real estate market in the way of democratization and gives previously unavailable opportunities for everyone to become an owner of any property anywhere in the world. It thus becomes possible not only to own property, having only hundred dollars, but also to have a possibility to choose the most incredible projects to be built. It opens new era of urban development, where cities can really look like set decoration of sci-fi films. Active participants can get income from their actions on in Squarex platform.

SQEX TOKEN PARAMETERS

Price for SQEX token is determined by the balance between demand and supply. SQEX tokens are released only during the ICO SquarEx stage. SQEX tokens cannot be additionally emitted or minted after the ICO completion.
Demand for SQEX token is determined by:
1.   The use of token as payment method in main transactions on SquarEx platform;
2.   The use of token to provide developers and auditors during the participation in construction and related works. The freezing of tokens’ block, when participating in conduction works, comes out of circulation for the period of the works completion.  
SQEX token is used:
●   To pay the cost of announcement placement during the Initial Square Offer (ISO), including the cost of Due diligence application, and the digitization cost of construction project (the creation of construct smart-contract);
●   To pay the SquarEx commission from the contribution volumes attracted during the ISO financing;
●   To purchase discount tokens of the projects during the ISO on DEX SquarEx exchange;
●   To pay SquarEx commission for discount tokens sales transactions, taking place on SquarEx exchange;
●   To pay commission for the property bookings in the building being constructed and registration of property rights (legal costs) for apartments in complete buildings;
●   To pay loan and lease, and SquarEx commission for the executions of loans and escrow services on the platform;
●   To participate in builders and auditors' auction;
●   To pay penalties for poor-quality audit and poor-quality construction work
Other Assumptions:
●   We assume annual world digitized real estate construction market share will reach 1% of total real estate construction market by 2021.
●   First ISO project on SquarEx will be launched in the second quarter of 2018.
●   It is important to note that technological superiority of SquarEx over existing projects and over modern ways of real estate and construction management is likely to increase these figures even more.
First ISO project on SquarEx will be launched in the second quarter of 2018.

DETAILS

SquarEx is a global platform deployed on Ethereum aimed to launch smart-contracts in Real Estate development. Smart-contracts of the platform cover such types of deals as real estate development, loan, property lease, purchasing of properties, booking properties during construction phase, due diligence, fundraising and stock exchange of properties.
To solve problems of price overestimation during construction, fictitious suppliers, and construction materials theft, SquarEx provides:
- bidding mechanism for contractors choice and legal support
- Each project will be split in $100.000 stages. Each stage will be overseen by an auditor and token-holders. Without their acknowledgement, no payment will be executed.
- SquarEx branch-curators will control quality of audit and allow projects to be listed on the platform.
To solve problems caused by increase in volume and price of construction works due to inflation, building damages, and miscalculations in the project, SquarEx provides:
●   a fine for developers in case they refuse to conduct agreed stage
●   construction risks insurance
●   modification of construction project and additional tokens emission if necessary
To solve problem of low liquidity and inaccurate pricing SQUAREX provides:
●   tokenization of properties
●   property sales during ISO (Initial Square Offer)
●   exchange trade of discount tokens on a decentralized Square Exchange DEX

DETAILED DESCRIPTION                       

By 2020, the 21st century’s great migration to the cities will be well underway. Cities will be swelling across the fast-growing countries in Asia, Africa, the Middle East and Latin America. Even the developed Western nations will be urbanising, albeit at a slower pace.
The volume of building activity will be huge, expanding the world’s inventory of institutional-grade real estate. Global construction output is expected to almost double to US$15 trillion by 2025, up from US$8.7 trillion in 2012. Emerging markets in Asia will be the fastest growing region, but sub-Saharan Africa is expected to be the second highest.
                       
Demographic shifts will affect demand for real estate fundamentally. The burgeoning middle-class urban populations in Asia, Africa and South America will need far more housing. Thus, the UN study states that by 2050, the urban population will increase by 75% to 6.3 billion, from 3.6 billion in 2010.
                       
In the 2012-2020 years according to PwC analysis, the growth of the global institutional-grade real estate market will be on average 5.8% a year.
                       
According to ACFE research of fraud cases, 3,4% of all reported frauds are in construction, and approximate loss of each is about 300,000. We suggest, that all real estate plus construction fraud cases are about 5% of all fraud cases. There are following typical fraud often met:     
●      Billing fraud  
●      Bid/contract rigging
●      Bribery/corruption  
●      Fictitious vendors      
●      Change order manipulation  
●      Theft or substitution of materials
●      False representation        
●      Tax avoidance   
●      Overvaluation and undervaluation of estate price  


Fraud and corruption on global real estate market is forecasted to account for $0.75 trillion by 2025.
The problem of fraud in the course of construction and in real estate transactions has been addressed to this day mainly through state rulemaking, judicial mechanisms, and the institution of professional lawyers and appraisers.
However, not in all countries the judicial system is effective.

Moreover, nowadays real estate is counted as illiquid asset class with forecasted time to exit of about 12 month. Therefore, final buyers, as well as investors are not able to sell real estate property quickly at market price. The market size of the solution providing liquidity of assets of real estate under construction is about 10 trillion dollars a year.
The problem of the liquidity of real estate has been solved so far in two ways:
●   individually, when each owner of the property did information promotion of the object on the market or reduced the selling price;
●   centrally, when companies such as real estate agencies, due to the concentration of information about buyers, investors and developers had the opportunity to shorten the transaction time.  That is, they sold the liquidity service to each of the participants in the real estate market.
All of these factors determine huge demand on technological solution, which will offer a complex approach to solving actual problems in real estate industry.      

SquarEx Solution

DAO SquarEx – is a global platform deployed on Ethereum aimed to launch smart-contracts in Real Estate development. Smart-contracts of the platform cover such types of deals as real estate development, loan, property lease, purchasing of properties, booking properties during construction phase, due diligence, fund raising and stock exchange of properties.
To solve problems of price overestimation during construction, fictitious suppliers, and construction materials theft, SquarEx provides:
- bidding mechanism for contractors' choice and legal support
- Each project will be split in $100.000 stages. Each stage will be overseen by an auditor and token-holders. Without their acknowledgement no payment will be executed.
- SquarEx branch-curators will control quality of audit and allow projects to be listed on the platform.
To solve problems caused by increase in volume and price of construction works due to inflation, building damages, and miscalculations in the project, SquarEx provides:
●   30% fine for developer in case they refuse to conduct stage (can be changed by branch curator). Such fine increases project budget while decreasing effect of moderate inflation   
●      construction risks insurance
●   modification of construction project and additional tokens emission if necessary
To solve problem of low liquidity and inaccurate pricing SquarEx provides:   
●      tokenization of properties  
●   property sales during ISO (Initial Square Offer)              
●   exchange trading of discount tokens on a decentralized Square Exchange DEX

Square Exchange Life Cycle

Squarе Exchange – is a safe ecosystem for trading realty, providing comprehensive facilities including DEX SquarEx, DAO SquarEx and SquarEx smart-contract platform.

Within DEX SquarEx any participant can buy or sell square tokens.
On SquarEx any realty becomes a liquid asset. Profitability of square tokens is driven by property price growth during construction in a row with high liquidity and safety mechanisms implemented in SquarEx. All the above-mentioned stimulates investors and buyers to actively participate in project tokens' turnover.

How does it work?                        

SquarEx allows developers to issue their own project tokens, linked to discount bonuses for realty under construction during Initial Square Offer (ISO) on Squarex DEX. Such tokens can be sold to contributors in real estate, in order to contribute in construction and will be supported by a specific discount on square meters.
Creditors can lend those tokens to buyers in a form of a loan and get interest in a currency of their choice.
Buyers can exchange tokens for flats after construction is finished.
At the same time, we assume a flow of transactions and their variability on Squarex platform to be high enough. For example, end-buyers can purchase tokens during ISO in a row with participants. They can also exchange tokens of one building to another anytime, buy tokens of one building under loan of tokens of another building, pay with tokens, take loan etc.
To buy project tokens one needs to:
Open an account on DEX SquarEx;
Choose a building of interest
Purchase project tokens
Further on, token holder can use tokens at his own discretion:
●   Resell tokens on exchange platform to gain profit
●   Exchange project tokens for property after construction is finished or book an object before construction is over and conduct exchange when it’s finished
●   Apply and get loan before construction is over and use the object while paying the loan back
●   Lease his tokens and gain profit in a form of loan interest

Project listing                     

Any SquarEx tokenholder can issue a bid for crowdfunding a construction project in Branch DAO SquarEx. In order to do so, they need to provide special set of documentation for the project.
After a scrupulous Due Diligence, proposal is approved by curators and project budget is set. During this procedure, a contractor for each type of construction works is defined via bidding. Then auditors are chosen.
After the budget is set, DAO SquarEx creates construction smart-contract and launches Initial Square Offer – issuing project tokens to initial buyers via DEX SquarEx.
After ISO is done, project curators are defined for each stage of construction and construction begins.
During construction, completion of each stage is scrutinized by a relevant auditor. Auditor reports to curators. Project curators approve each tranche until the building is complete.
After the building is constructed, project tokens are exchanged for properties.
Prior to ISO each property within construction project is evaluated at particular amount of tokens, as property prices can vary depending on many parameters.
 

TIMELINE

17 November – demo version of the developers listing platform
18 November – Pre-ICO start
1 Decembder – Pre-ICO completed
10 December -  ICO 
 10 December – Alpha version of crowdfunding platform Squarex (smart-contracts DAO)
10 January -  ICO completed
30 March – beta version of crowdfunding platform Squarex and "smart-construction for one developer"
1 July Release 1: release version of crowdfunding platform SquarEx + beta version for developers (fully service package, but tailored to a specific developer)
1 November Release 2: automatization of developers' registration + beta version of trade exchange
1 February Release 3: fully functional platform, automatic operations with developers, branches and investors.

TEAM

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Kirill Kotilevskiy
Founder, CEO, Developer of business logic
Expert in the field of securitization of real estate.
Founded the “National Real Estate Broker” company, acted as an stock consultant for major Russian construction companies : LSR Group, GK-MIC

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Michael Gnezdilov
Founder
Owner and CEO of AMJ Group Construction Development Company,
Offtakes more than 400 000 square meters of real estate. The overall cost of his development projects is more than $200 000 000 Has brought to life more than 20 development projects. AMJ Group Participated in constructing of Federation Tower, the biggest tower of Moscow City
Led RAO UES (Unified Energy System) of Russia

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Igor Vasilyev
CTO
12+ year in It industry. Team lead in development software system in Media-Saturn Russia.
Starting from 2011 Igor successfully created and launched more than 10 it-solutions in online retail
and were engaged in the creation of teams of developers for IT projects.
The winner of the European hackathon Junction 2016 in the FinTech track with the decision: «Payment channel for spending crypto coins on many» classic e-commerce «sites»

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Boris Sarmatov
Founder, CVO
CEO of «3D Capital» holding company.
Starting from 2013 Boris is heading “3D Capital», a holding company conducting activities in construction, mining and logistics in Russia.

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Vladimir Mironov
CIO
6+ attracting investments and increasing sales in construction and development.
Managing partner and board member for AMJ Group Construction Development Company.
Author and developer of unique technology of realty sales through electronic tenders for a major government owned developer.
Foreign relations experience.

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Harry Aloysius
India Community Coordinator
Starting from 2013 Harry is heading “Tip Top Tyres’ a trading company dealing with tyres accessories and performance parts.
Experienced in Leasing and subleasing of service apartments to tour operators on long term and short term basis.
Certified in basic dubai real estate laws and experienced in basic Dubai real estate sales and leasing.

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Vincent Demiaux
Real Estate Developer & Investor Relations
Co-partner of PATRIMONIO Unlimited Company in Switzerland
The overall cost of its development projects is more than 2 billions of Swiss Francs during the last 34 years.
Patrimonio Participated in constructing of many differents sites, living, commercial and institutional places in Switzerland, France, Belgium, Portugal, Morocco and Monaco.

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Sergei Lebedev
Chief Lawyer
Starting from 2016 Sergei is heading Unicraft consulting company specializing in property, commitment and corporation law.
2014-2015 heading law department in one of the Russian gold-mining holdings. 2013-2014 heading law department in “SMART Securities”, took part in 2 successful IPOs, before he lead a group of bankrupts and commitment practice in one of the most effective Siberian law bureau “Lawyer LK”.
Participated in various capital investment projects, including international M&As.

Advisory board 

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Dr Vita Kadile
International Marketing Adviser, United Kingdom
Marketing and Entrepreneurship Research Fellow at Leeds University Business School, United Kingdom, since 2013.
Specialising in foreign market entry and marketing strategy, Vita is actively involved in several research projects in relation to entrepreneurial start-ups, marketing capabilities, supply chain and export performance.
Recently completed a major consultancy project for a UK-based international multi-channel retailer resulting in a major improvement of its foreign operations.
Also serves as an Assistant Managing Editor for the Journal of International Marketing.
Phd, Marketing

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Anthony Akentiev
Blockchain Adviser
Lead developer of Squarex Platform architecture/usage scenarios of DAO Squarex.
Developer of DAO Squarex and branches smart-contracts
10+ years of C++ experience; Java, and Solidity programming expert
https://github.com/AnthonyAkentiev

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Pomortsev Dmitry
SquarEx Testing Pool Representative
Vice President, Development, Sales & Marketing, International Projects «Astanatransstroy», Kazakhstan. 

KICKONOMY!

Yes, we accept KickCoins

CONTACTS

http://squarex.io

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