Kexcoin ICO: Evaluation and Analysis


The Quick Pitch

KexCoin is raising money for high-yielding student properties. As these properties generate rental income, the company will buy back KexCoins from participants and then destroy them, thus raising the value of all remaining KexCoin. KexCoin also can be used to pay for rent at any KexCoin or Kexgill Group property.

The Problem and Solution

Raising money for large-scale residential housing is dominated by institutional investors who use Real Estate Investment Trusts as the entity for ownership of commercial real estate. KexCoin’s vision is to build a new funding network through the use of blockchain technology, making it available for almost anyone in the world to contribute, in any amount, large or small, by purchasing KexCoin.

KexCoin is supported by an existing infrastructure, a United Kingdom student property company known as the Kexgill Group, with over £120m in assets and more than 30 years in the student accommodation market. The group’s planned purchases will make use of infrastructure that is already in place and available immediately. This means that there is little or no development time. KexCoin is set up as a United Kingdom registered company. The group’s investment formula includes strict benchmarking parameters to be met in all investments. Gross yields on the properties they purchase are expected to be around 8-15 percent.

The Team

The leadership team includes Michael Lee, who earned his Ph.D. at Hull University. He is owner/founder of the Kexgill Group, who will provide management services. KexGill is a student housing provider with over 3,250 beds throughout the United Kingdom and 360 multi-family apartments in Germany.

The leadership team also includes Chris Coney, who has a Bachelor’s degree in Computer Science and Business Information Engineering and is the host of The Cryptoverse and founder of Cryptoversity, the online school for bitcoin, cryptocurrencies, and blockchains.

Richard Stott is also on the team at KexCoin. He Joined Kexgill in 2006 to expand its real estate portfolio in the UK and Germany.

Simon Lee is an entrepreneur and visionary behind the KexCoin project. He studied computer science at the University of Hull before joining the board of the Kexgill Group. Currently managing director of SLP Limited dealing in importation and worldwide e-commerce retail.

The Token

KexCoin aims is to raise 21,250 BTC by selling 8.5 million KexCoins at 0.0025 BTC each. Any KexCoins that remain unsold when the ICO closes will be burned. 8.5 million KexCoins represents 85 percent of the total supply. Five percent or 500,000 will be retained for contingencies and 10 percent will be allocated to the core team who will hold their KexCoins for a minimum of one year.

KexCoin derives its value from its commitment to buy back coins using 50 percent of profits generated from rental income. Dates for each buyback will be announced in advance so KexCoin holders have sufficient time to place their sell orders. Should no participants be willing to sell at that quarter, the funds would be retained and added to the next quarter net profits and used to buy back KexCoins. These funds are strictly ring-fenced for the purposes of buyback and burn. Auditing procedures will apply.

The quarterly buyback budget will be used to buy back and burn as many KexCoins as possible. Holders may list their coins for sale on the market at their desired sale price and then wait for the supply to diminish and the price to rise. KexCoin will repeat the buyback and burn process for 30 years until October of 2047. After this date, the buyback process will stop and the value of any remaining Kexcoins will be redeemed by depositing a share of the increased property value into the remaining holders’ accounts. The payment will be made in bitcoin.

The Community

There are multiple posts about KexCoin at Steemit. KexGill is described as Britain’s largest private owner of student townhouses in the UK in this piece in the Yorkshire Post. There is a great interview with Chris Coney on the FOMO Show with Matt Llewellyn, describing the startup of KexCoin idea in a conversation between Simon Lee and Chris Coney.

Next Steps

KexCoin is in the process of raising funds in a very competitive landscape. While it is unique for a coin to be focused on student housing, KexCoin is one of hundreds of startup ICOs looking for funding in Q4 2017.

KexCoin has some advantages over other coins; it has partnered with a successful student housing organization, KexGill, which has been around for 30 plus years, based in Hull, England.  While real estate investment trusts pay dividends, KexCoin will reward coin owners with buyback and burn of coins. Buybacks can be an effective tool in raising the value of outstanding shares of stock, and should likewise be successful with altcoins. While some ICOs are nothing more than an idea under development, KexCoin is offering a coin supported by a management team with experience in student housing properties. These properties will provide rental income to support KexCoin and reward coin owners.

Once fundraising is completed, KexCoin will begin the process of identifying student housing complexes for acquisition. Partner Kexgill Group gives KexCoin an edge here with its team’s experience in acquiring properties that generate attractive returns. Get free email updates on KexCoin here.

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