ICO Review: Zillios – blockchain based real estate platform
Zillios is an ambitious project aimed at transforming the real estate industry by implementing tokenization and smart contracts.
The team behind the project brings its multiple years of international real estate experience into the crypto market. In January 2019, they plan to launch a robust platform for selling and vacation renting of properties all around the world, in a decentralized and zero commision based way.
Project name: Zillios
Token symbol: ZLST
Platform beta: zillios.com/
Whitepaper: Zillios Whitepaper
Lightpaper: Zillios Lightpaper
Hard cap: $25 million for 40% of the tokens
Maximum market cap at ICO on a fully diluted basis: $35 million
Zillios main idea is to disrupt the current global real estate industry by tackling the problems its faces. The team behind the project have 10 years of experience in developing and expanding various online portals and solutions designed to serve the real estate industry such as Estatefy, AzurSelect, IMMO ABROAD. Being familiar with the industry, they identified key pullbacks and inefficiencies in the process of buying and renting properties and how they plan to overcome them.
Firstly, according to their research, the biggest real estate markets across the world are all dominated by leading local portals. This makes it really difficult for individual agents and the smaller agencies to promote their listings. In essence, being massively dominated by few portals makes the market highly monopolistic and thus increase the listings fees and commisions. In addition, real estate agents are placing only a small number of properties on these portals, because of the costs and are also paying inefficient marketing costs. Zillios proposition to overcome this issue is by introducing free listings, 0% commission on rental bookings and an auction-based cost-per-click bidding model, emphasized by being in control of the marketing expenses associated with each of the listed properties.
Secondly, most of the real estate portals are focused on their local markets, making it harder and more complicated for international buyers. Zillios will introduce easily accessible third-party services such as lawyers, notaries, mortgage brokers etc, as well as comprehensive tools and content for international buyers. This will make the whole process of buying a real estate from abroad as easy as pie.
The third big issue within the real estate industry is the lack of trust between property owners, agents, and buyers. These make it enough for them to choose the reputable portals despite the big fees. Zillios plan is to introduce blockchain solutions and decentralize the whole interaction between the involved parties. In addition, the above mentioned third party services are a control mechanism that will guarantee transparency and remove any doubts.
In regards to the renting services offered across the real estate portals and market leaders such as Airbnb and TripAdvisor, the main problems come from the actual payments and fees mechanisms. Many renters have to pay long before their arrival day, while they suffer from non-transparent portal commisions and unclear fees. Meanwhile, all the payments made by renters are held until their arrival day. This in turn directly influence the homeowners and agencies, which are getting their payments after a long wait. Zillios will not only tackle these problems by introducing 0% commision rental bookings but will also decentralize the whole process through smart contracts and the implementation of escrow solutions.
According to industry reports the total market size in the global real estate in 2017 was around $8.5 trillion. Having this in mind, the opportunities in front of the project are enormous. If they are successful in delivering all the promised solutions, they could easily take a decent piece of the pie, which in terms of market capitalization will be huge.
Token utility and Zillios platform
The ZLST token will run its smart contracts on the Ethereum platform. The total supply of ZLST will be fixed at 1 billion tokens. 40% of these tokens will be distributed in two separate ICO rounds – pre-sale and main sale. The hard cap of the ICO is set at $25 million, meaning that the maximum market cap at ICO on a fully diluted basis will be $35 million. Considering the current crypto market conditions, if the Zillios ICO is successful it will put the coin outside the top 100 cryptocurrencies on Coinmarketcap. This means that the ZLST token is fairly priced, especially with the market opportunities that the giant real estate industry is offering. Another good thing to point out is that 25% of the tokens will be in a company reserve, designed for platform growth, marketing activities and incentives for early adopters. In addition, the Zillios team and founders will have a 4 year vesting period with a 12-month cliff, meaning that there won’t be large fluctuations in the volume and price of the Token.
In regards to ZLST usability, Zillios have ambitious plans to optimize the token utility and achieve broad adoption by all the stakeholders in the platform. Basically, the platform will bring together buyers, sellers, renters, agencies and all the possible third party services involved with the real estate industry. This one-stop-shop will be emphasized by transparency, ease of use and low costs.
Every feature of the platform will be based on the ZLST token. From the bidding system to deal closings and escrow services, everything will be pushed through the token. Essentially this means that the price of the token will be directly linked to the platform usage. Furthermore, the project plans to offer their API for third parties usage, meaning that the token ecosystem will evolve beyond the actual platform.
Marketing and Roadmap
Due to the relationship between the platform growth and token price, we need to carefully consider how Zillios plans to market their ecosystem. As already mentioned, the team behind the project have multiple years of experience in developing and marketing of real estate platform, so they are already familiar with the marketing needs of such an endeavor. In addition, they are also very well connected and with extensive marketing knowledge, having active businesses in Spain and France, two of the most developed real estate markets in Europe. Their main goal will be to bring traffic and ultimately more customers to the platform. They carefully outlined they are plans for marketing to the different stakeholders of the platform – from renters and buyers to agencies and sellers, as well as third parties.
In regards to their roadmap, Zillios declared a well-thought and ambitious roadmap. It is evident they carefully planned how and when to release their platform. In addition, in their Whitepaper, the company thoroughly described each of their milestones. Combined with the fact that the team is actually working on the platform from 2017, means that Zillios is a strong project which will most probably succeed to achieve their goals.
Another important thing we should take into consideration is that Zillios already have a minimum viable product. Their platform beta is live and it already has 1 million properties listed. In the crypto market, this means that the ICO and the team behind it are serious enough and they should release their mainnet without problems.
As already mentioned multiple times, the team behind the project is experienced with the real estate industry and for me, this is where the project shines the most. With names and leading developers from Estatefy, an IT company which provides extensive software development and services for rental and real estate professionals. Also, with owners of multiple travel agencies across Spain and France, as well as marketing strategists for platforms such as IMMO Abroad, one of the market leaders for renting and selling properties in the same two countries. The team is just really competent and capable of delivering their promises.
More information about their team can be seen on their Website and Whitepaper.
Zillios have an impressive and very ambitious proposition for eliminating the problems faced by the real estate industry. We have said multiple times, that decentralization and the blockchain will change the world and for us, this is a great example of how the technology can actually be good for a certain type of business. Although the project hardcap is at $25 million (a bit on the upper side, especially with the current market conditions), we believe its a fair price. The team has goals to go global, with expansions on multiple markets simultaneously and with extensive marketing expenses, so they clearly need the funds. We really liked their third-party service integration, meaning that when the platform is live there will be multiple announcements for partnerships with other blockchain related projects as well as other local businesses. This guarantees that the project will be in the news regularly, making traction and increasing the awareness of their platform. As already mentioned, the real estate industry is enormous, with trillions of capital flowed early. If they succeed in getting even 0.5% of the whole industry, this will be a massive success. The team looks capable, experienced and well-connected to deliver their global real estate platform and their plans are well-thought and presented.
On the other hand, there are some negative points that should be taken into consideration. For a start, there are potential legal issues of selling and renting of properties in different markets using crypto-related project. We all know how governments are constantly changing their position in regards to the crypto legislation. In addition, the adoption of customers that are part of the platform is probably the most important factor that will influence the price. People, in general, are not yet familiar to the blockchain technology and usability. Finally, the current rough market conditions are a potential threat to the success of the ICO. If the team is not able to collect the needed funds, their marketing plans will be drastically decreased, thus the users of the platform might not be as much as expected.
This article was created in exchange for a potential token reward through Bounty0x, and should not be seen as an investment advice. DO YOUR OWN RESEARCH…