Page 2 of 2

The crypto property start-up hopes that the savings gained from using blockchain to manage its portfolio will trickle down into the value of the token, Luginbuehl said.

Tech, Not Property

The firm's goal is not another speculative cryptocurrency of the sort which have made unfavorable headlines in recent months, she said. The SRC is meant as a low-volatility and high-security token – an ideal diversification of most crypto portfolios.

«We see ourselves more as a tech company than a property firm,» Luginbuehl said. The CEO previously spent seven years with real estate and investment firm Jones Lang LaSalle. «Our goal is to build a bridge between the old and often inefficient and opaque real estate business, and modern portfolio management using blockchain.»

Usual Crypto Suspects

Crypto Real Estate's plans illustrate that even the most promising token start-ups need well-known experts. The firm's co-founder is blockchain specialist Yauhen Yakimovich, while Uber's ex-marketing boss in Switzerland, Sarah Jordi, has joined the crypto firm in a similar job. St. Moritz-based lawyer Andrea Stoehr is responsible for legal und compliance isuses.

The board is stocked with other crypto «usual suspects» including University of Zurich professor Thorsten Hens as well as Tobias Reichmuth and Marc Bernegger, who recently organized an exclusive crypto retreat in St. Moritz (click here to read finews.com's report). The firm plans to nominate a property expert to its board as well.

No-Fee Model

Luginbuehl, first pitched the crypto property model at the St. Moritz conference, is at pains to avoid the frothiness that accompanies many ICOs. If the SRC token deviates too far from the value of the underlying property portfolio, then Crypto Real Estate will issue another coin. The proceeds would be used for further property purchases, in the hope that the value of the coin and the real estate portfolio would narrow.

The firm is also differentiating itself from the fee-rich environment of traditional property companies: Crypto Real Estate won't levy management fees, taking its profits from the actual property management instead. The firm wants to retain 20 percent of earnings and reinvest the remaining 80 percent.