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$66 Million Building to Be Tokenized on Ethereum Blockchain in Record Deal

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For Patrick O’Meara, there is a world of difference between security tokens and tokenized securities.

A security token merely means an issuer is selling a crypto token in compliance with securities laws. But with a tokenized security, “it’s a whole different world,” where blockchain technology gives investors an unprecedented level of transparency, said O’Meara, chairman and chief executive officer of Inveniam Capital Partners (ICP).

ICP is about to put this idea to the test. The company plans to tokenize some $260 million in four private real estate and debt transactions, starting with a WeWork-occupied building in downtown Miami, Florida. Announced Tuesday, the firm intends to sell tokenized shares of the building, valued at $65.5 million, likely the largest piece of real estate to be financed this way to date.

The company placed a deposit on the building last month using an unspecified amount of bitcoin. Once the other three deals are finalized, ICP will be auctioning off shares in the assets, represented by ERC-20 tokens on the ethereum blockchain, the coming weeks.

Shares in the four assets will be sold through what is known as a Dutch auction, meaning potential investors will place their own bids outlining how many shares they want, what price they would like to pay per share and which cryptocurrency they would like to pay with.

Inveniam will accept bids denominated in the top 50 cryptocurrencies by market cap at launch.

When the sale concludes, tokens will be distributed in order from the highest bids to the lowest, O’Meara told CoinDesk.

“The price that every bidder pays will be based on the lowest price of the last successful bid dependent upon the bidder’s fiat-to-crypto conversion rate limit,” a press release noted.

In order to participate, potential buyers must hold at least $10 million in crypto, with a minimum purchase of $500,000. The sale will be conducted in accordance with private placement rules issued by the U.S. Securities and Exchange Commission, according to Inveniam.

Tokenized transparency

Perhaps more ambitious than the auction, however, is what ICP intends to do with the tokens representing each share.

A Wall Street veteran, O’Meara explained that typically, shares come with large amounts of data, from how they are created, as well as data collected through its life and performance – which could be 20 or 30 years in the case of some debt offerings. ICP will put all of this data onto its platform and associate it with a token, he said.

“We built our entire software, our stack, everything we do, the way we tokenize the instrument is so the enormous amount of data that’s associated with the financial instrument … can be aggregated and is attached to the token,” he explained.

One of the benefits to collecting all of this data into one system is that it is suddenly “uniquely searchable,” he said.

At present, legal documents are converted into PDFs or similar file types, which make them difficult to search through.

If, instead, a company stores the hash and a cipher that is associated with a legal document on a blockchain, it allows for these documents to be stored in their native form.

“We can store those documents in their native form, Word, Excel, because an Excel table in a PDF document is uniquely useless,” he said, adding:

“If we can store all this data in its native form, and the way that we have surety is because of the hash and the cypher … you can literally trace, as a regulator, every document associated with this transaction.”

This allows a large amount of data to be stored, which in turn can allow the investing world to make decisions based on quantitative data in a way that was not as accessible before, O’Meara said.

Other offerings

In addition to the WeWork building, Inveniam plans to tokenize shares for a student housing facility in North Dakota, which is being valued at approximately $90 million; a North Dakota water pipeline worth $50 million; and a multi-family housing facility in southwest Florida worth $75 million.

Like the WeWork auction, shares from each building will be sold as tokens and can only be purchased using cryptocurrency.

The proceeds will be converted into their fiat equivalents before being passed to the buildings’ sellers, O’Meara noted.

The company may launch other projects as part of this transaction as well prior to the auction’s starting date.

All told, the total value of the four properties will add up to $260 million.

Future of real estate?

Tokenized real estate has become an increasingly popular use case for blockchain in recent months. Templum Markets, a token trading platform and advisor, sold a security token representing shares in a Colorado ski resort last year, accepting U.S. dollars, bitcoin and ethereum.

Similarly, security token startup Harbor is selling 955 shares in a high-rise building in South Carolina, though each share is only worth $21,000.

Harbor CEO Josh Stein told CoinDesk last November that using tokenized shares allowed the company to more easily track shareholders and verify that they are compliant with relevant securities laws.

Downtown Miami rendering courtesy Inveniam Capital Partners

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A New Bitcoin Exchange Point On the Colombian-Venezuelan Border Will Help Refugees

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A new cryptocurrency exchange service is available on the border between Colombia and Venezuela and its aim is to help refugees traveling across the Simon Bolivar International Bridge.

Visitors are now able to use the point-of-sale service with cryptocurrencies to buy goods. The POS is located in Santander, Colombia, just across the border from Venezuela. Panda Group created the payment alternative with refugees in mind. The group, a Columbian-Venezuela joint venture, announced the implementation of the new service through their Twitter account.

According to the data published by Coinatmradar.com, the service lets users exchange using bitcoin (BTC), bitcoin cash (BCH) and dai (DAI), and converts them into to Colombian Pesos (COP).

At the physical location – a small phone service provider in a mall called La Parada – customers can buy bitcoin with prices based on the Localbitcoins rate in pesos. The service will charge 10 percent above the market price and those who sell their bitcoins will do so for 5 percent more than the established market value.

This is not the first cryptocurrency service in the country. The Panda Group has already installed another five cryptocurrency exchanges in Colombia, most of them in the Colombian capital, Bogotá.

According to Panda CEO, Arley Lozano Jaramillo, their solutions are focused on helping the Venezuelan users and they announced the addition of a new service called Xpay.Cash to encourage adoption.

“This service is for all our brothers to pay directly in Cucuta with their cryptoassets and mitigate the loss of exchanging from BTC to COP, which represents a loss of at least 20%,” Jaramillo said.

Colombia has the highest rate of cryptocurrency investors in South America, next to Brazil. There are reportedly over 20 businesses accepting bitcoin payments in the country. The establishments are mainly focused in tourism, food and digital services.

Bitcoin At The Border

The ATM installed in Villa del Rosario City is connected to the Venezuelan border by the state of Tachira. The states are only separated by the Simon Bolivar International Bridge, one of the most heavily traveled borders used by Venezuelan refugees.

The refugee situation has also sparked a focus on the cryptocurrency, mainly for humanitarian aid purposes.

On the other hand, the last point of sale with cryptocurrency was implemented in Cúcuta, another border location with an growing Venezuelan population. The state also has a Bitcoin ATM, one of forty-two in the country.

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Fidelity-Backed Crypto Analytics Firm to Integrate Twitter-Based Crypto Sentiment Feed

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Crypto analytics firm Coin Metrics partnered with Social Market Analytics (SMA) to collaborate on a feed of real-time sentiment towards cryptocurrency based on social media data, according to a press release on June 17.

The new partnership intends to collect and analyze data posted by crypto community on social media in order to provide a new tool to help crypto traders to track social media sentiment data to build their portfolio strategies.

The new product will initially target sentiment data solely on social media giant Twitter, Coin Metrics CEO Tim Rice confirmed to Cointelegraph, adding that the firms are currently not considering integration of the service into Facebook.

Specifically,Coin Metrics will incorporate the product into market data platform, called the SMA cryptocurrency Sentiment Feed, providing calculated metrics of data on Twitter, according to a report by crypto media outlet The Block. In the report, Rice said that the calculation algorithms would include relevant tweets and calculate “19 different aggregate sentiment metrics down to snapshots of one minute.”

Social Market Analytics is providing social media-powered predictive data analytics to traditional capital markets participants in various markets, including stocks, forex, Exchange-Traded Funds (ETFs), futures, among others. Since its establishment in 2012, SMA has been a Twitter Finance partner, the firm’s CEO Joe Gits stated in an email to Cointelegraph.

Meanwhile, Coin Metrics is backed by major American investment management company Fidelity in February 2019, which participated in a $1.9 million funding round in February 2019.

Earlier today, social media giant Facebook released the white paper for its long-anticipated cryptocurrency and blockchain-powered financial project known as Libra stablecoin.





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Bitcoin Falls Near $9,000 as US Stock Market Sees Gains

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Monday, June 17 — most of the top 20 cryptocurrencies are reporting moderate losses on the day by press time, as bitcoin (BTC) falls Near $9,000 mark again.

Market visualization courtesy of Coin360

Market visualization courtesy of Coin360

Bitcoin is currently down about 3% on the day, trading around $9,045 at press time, according to Coin360. Looking at its weekly chart, the coin is up around 11%.

Bitcoin 7-day price chart

Bitcoin 7-day price chart. Source: Coin360

As Cointelegraph reported earlier today, bitcoin surpassed one million daily active addresses on June 14, according to blockchain statistics website CoinMetrics.

Ether (ETH) is holding onto its position as the largest altcoin by market cap, which currently stands at $28.2 billion. The second-largest altcoin, Ripple’s XRP, has a market cap of $18.1 billion at press time.

Coin360 data shows that ETH has seen its value decrease by about 2.27% over the last 24 hours. At press time, ETH is trading around $265. On the week, the coin has also gained almost 6.8% of value.

Ether 7-day price chart

Ether 7-day price chart. Source: Coin360

XRP is down by just over 0.43% over the last 24 hours and is currently trading at around $0.430. On the week, the coin is up about 6.7%.

XRP 7-day price chart

XRP 7-day price chart. Source: Coin360

Yesterday news broke that major money transmission network MoneyGram has entered into a strategic partnership with blockchain-based payments firm Ripple.

Among the top 20 cryptocurrencies, the only ones reporting gains are binance coin (BNB), which is over 1% up, and DASH, which is up over 2%.

At press time, the total market capitalization of all cryptocurrencies is $282.8 billion, over 11.6% higher than the value it reported a week ago.

As Cointelegraph reported earlier today, Social media giant Facebook has released the white paper for its long-awaited cryptocurrency and blockchain-based financial infrastructure project.

In traditional markets, the United States stock market is seeing gains so far today, with the S&P 500 up 1.17% and the Nasdaq up 1.73% at press time. The CBOE Volatility Index (VIX), on the other hand, has lost 0.46% on the day at press time.

Major oil futures and indexes are mixed movements today, with WTI Crude up 3.99%, Brent Crude up 2.43% and Mars US down 0.83% at press time. The OPEC Basket is up 0.57% and the Canadian Crude Index has seen its value increase by 5.57% in the 24 hours by press time, according to OilPrice.





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