Etherical has bought into the first tranche of the public token sale of Bitcar, based in Singapore and coming out of Perth, Australia.
Bitcar are selling 250 million of 500 million tokens in 4 tranches, after having raised US$5 million in their pre-sale.
The basic idea of BitCar is tokenizing ownership of Exotic Cars. As well as their BITCAR token, specific CAR tokens will be issued to provide fractional ownership of each investment asset.
Other than cryptocurrency, exotic cars have been one of the best performing asset classes. This type of super-rare, highly valuable, coveted asset increases in demand as world population grows, and tends to be recession-proof.
In this sense Bitcar is a hedge, by putting crypto into a non-crypto asset. We think that Bitcar has the potential to do very well as a token. You might not be able to afford a Bugatti Veyron or Mclaren P1, but you can afford some tokens in the ownership of one (no, you don’t get to drive the cars; cars at this level are an investment, one which depreciates with mileage).
Investment in this high-performing asset class was previously open only to the very wealthy. Tokenization makes it available to anyone.
The demographic of who is active in cryptocurrency in the world today is mostly men, and mostly young. Young men are into exotic cars, but usually lack the resources to acquire them outright. Tokenization makes it possible to become a part owner of an exotic car.
Bitcar seem highly aware of their market niche, and have already partnered with one crypto-supercar dealer Moonlambos who will accept BITCAR as payment. We like the underlying business of Bitcar, but we believe the “cool factor” of hypercar appeal could drive appreciation in token value even more than revenues and profits in the business.
Most of Bitcar’s team were also involved in the recent PowerLedger ICO, their POWR token has been very successful since launch. They know what they are doing and have the resources to ensure the success of their ventures. The members have a personal passion for this market space, which could add to the already strong enthusiasm for this coin.
The technology and business have been under development since 2015. A working prototype of the technology was built and used in 2016, and updated in 2017. It usually takes 2-3 initial generations of software to build something lasting. The presence of the prototypes reduces risk for investors, since the development challenges have already been solved.
We expect Bitcar’s token to outperform the underlying assets, and that token demand will be particularly strong in Asian markets. The appeal of “owning a Lamborghini for $100” is potentially even stronger than the desire to invest in this asset class.