ICO Review: Deedcoin

Deedcoin is an Ethereum-based token that looks to offer a decentralized network for real estate customers and agents to connect directly. Allowing customers to set the commission to one percent, Deedcoin’s goal is to solve the customer acquisition problem for brokers. And with active brokers already in all 50 states and 163 cities, Deedcoin has quite the foundation built up.

Especially considering Deedcoin already has a working prototype out, they’re currently looking to raise a hard cap of $28 million. Here’s what we think of them:

The Problem

As it currently stands, real estate commissions are dictated primarily by agents, which means 5 to 6 percent of a property you might be trying to sell is taken off the bat. When talking about one of the most significant values we try to build equity from, that can add up to quite a bit. Furthermore, this problem extends well beyond the United States, which is what Deed is looking to combat with their network. However, this is exactly what Deedcoin is looking to combat.

How Deed Coin Looks To Help

Deed looks to enable home sellers by letting them choose their local agent and set their rate as low as 1 percent. Their hope is the free market will put the power back in the hands of the seller in setting the commission.

Scaling

Deedcoin plans to scale through a network that they geographically compare to cell phone towers. Each broker will have a radius territory of 25 to 50 miles for each office, where each will be well-versed in that specific market. They purposely establish a model with a radius so brokers aren’t fighting over the same clients, as well as manage referrals in a streamlined manner.

Simplicity

An impressive feature of Deedcoin is how simple its structure is, allowing for a faster, more transparent and cost-effective methodology. Deed also offers a live web application that boasts such features as scheduling, task flow management, and information assistance, as well as 24/7 support, a component not a lot of crypto companies are able to offer right now. Overall, their structure is a transparent infrastructure that serves what it says from day one, which is miles ahead of a lot of projects.

Benefits and Incentives

Deedcoin also offers a pretty lengthy list of benefits and incentives for those that participate in their network. Here are a few primary examples:

1. Property Buyers: The Deed Network creates an opportunity for buyers to receive rebates at closing with any property listed by the seller with a traditional agent.
2. Property Sellers: At a 1 percent sales rate rather than a 6 percent sales rate, property sellers can keep much more from the final sale.

Agent Incentives

Deedcoin feels that the standard overhead for running a real estate company at 2 percent commission creates a struggle to stay in business, favoring “mega brokerages” that have national franchises. Furthermore, labor and advertising costs also play a role, where these practices can be quite difficult without a lot of upfront backing. However, Deed’s marketplace is able to over agents and customers the ability to connect through the network so agents don’t have to spend time marketing, saving a pretty substantial amount.

The Tech

A great trait about Deedcoin’s tech is how simple they keep their overall structure is for onboarding, which follows the principle of how the less you have to explain about crypto, or blockchain the better, which Deedcoin follows well.

Social Good

Deed aims to bring on a social program called Good DEED, which will be designed to help people that are in need of real estate they can’t afford. The program is targeted at buyers who don’t have enough money for a down payment or sellers with limited equity.

Revenue Models

Deed has a few different structures for revenue models, which include:

Core Markets

These are areas Deed aims to establish customer bases, including areas currently paying 6 percent commission as well as a high average property value.

Positive Value Partnerships

Deed plans to partner with service providers to show a choice of three options for each product a home might need, such as inspectors, insurance carriers, HVAC,  and warranties. The goal is to be able to provide a discount to Deed customers to ensure they’re getting the best deal.

Our Thoughts

With a product that’s already working and has shown applicable real-world value, Deedcoin is one of the best projects you can take a look at. Their simple, straightforward design lends itself to be adaptable by the crypto and noncrypto communities alike as a great use case for how blockchain can have a real-world application without having to run the gamut on crypto. Plus, with a great team and understanding of how to move forward from here, I highly recommend diving deep into Deedcoin’s current sale, as they’re one of the strongest crypto projects out.