ICO Alert Report: Caviar
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ICO Alert Quick Facts
- First diversified token, access to real estate debt and top cryptos
- Team has a five year successful track record running a real estate fund
- Goal of the token is diversification and downside protection; funds can be shifted quickly from real estate to crypto and vice versa
- Real estate crowdfunding platform will allow Caviar token holders to earn additional revenue by staking tokens and financing other real estate projects
- Caviar’s economic model returns 75% of quarterly net profits to token holders and offers liquidity with token buy-back
What is Caviar?
Caviar is pioneering a dual-purpose token and crowdfunding platform built on the Ethereum blockchain. Caviar’s token offers access to stable real estate and cryptocurrencies, with built-in downside protection and automatic diversification.
— Kirill Bensonoff, CEO
Q&A with Kirill Bensonoff, CEO of Caviar
ICO Alert: For those who are not familiar with Caviar, can you explain what it is, and what the team aims to accomplish?
Caviar: Diversification of cryptocurrency investments is difficult because most assets are highly correlated. Caviar aims to solve this by providing exposure to fast-growing crypto assets and income producing real estate in a single token — minimizing risk and maximizing returns in both asset classes. Our dual-purpose token and crowdfunding platform will be built on the Ethereum blockchain to offer access to stable real estate and cryptocurrencies, with built-in downside protection and automatic diversification.
ICO Alert: How does the Caviar token function within the platform and why is it needed?
Caviar: Once the Caviar Platform is live, CAV will be utilized in a number of ways, such as helping fund real estate projects, paying community members for education, and paying service providers for various services.
ICO Alert: What unique experience does your team bring that puts Caviar in position to be successful?
Caviar: Caviar’s innovative team is made up of blockchain, real estate, technology, and finance experts. The partner team also has an established track record, having successfully managed a multi-million-dollar real estate debt fund since 2013, and bring years of experience and research to this project. Caviar combines large cap and most stable cryptocurrencies, select new token projects, and real estate, utilizing our proprietary Intelligent Predictive Model in order to perfectly time investment decisions. Caviar is the successor to Caviar Capital, which, in the past five years, successfully financed dozens of redevelopment projects and has a 0% default rate, zero late payments, and an average IRR (internal rate of return) of 16% per year. Since its inception, Caviar Capital has consistently outperformed S&P 500 Real Estate and S&P 500 Bond indices by over 300%.
ICO Alert: What are some of the advantages of using the Caviar token as a hedge against the crypto market volatility compared to something like Tether? Would there be any disadvantages?
Caviar: Aside from the recent troubles Tether has had, there are fundamental differences. Caviar is a managed, diversified token — it gives token holders access to a basket of diversified real estate-backed debt, and top performing crypto, thus, giving investors the best of both worlds and allowing them to earn profits even if the crypto market has a downturn. So yes, there are some hard assets behind a portion of Caviar’s holdings, but the real innovation is baked in the diversification across uncorrelated asset classes.
Our data science advisor and NASA-recognized inventor David Wirth said it best when he shared, “Caviar has a two-pronged approach to ensuring profitability for token holders. It relies on hard assets (in this case, short term loans for real estate improvement) to provide limited downside protection, and also a unique predictive model (IPM) I helped develop, which will be used to build a robust and aggressive hedge fund-like portfolio of novel crypto assets and cryptocurrencies. Unlike other ICOs on the market, such a system will use an artificial intelligence engine which draws upon large databases collected and aggregated by automated systems. The engine will allow us to capitalize on unique opportunities in the cryptocurrency markets and build positions quicker than other ICOs.’
Additionally, as our trading strategy advisor Ivan Labrie notes, Caviar is uniquely positioned to hedge exposure in a bear market: ‘In my experience as a trader, I found that Caviar’s offering could be a great alternative for storing value in crypto, without having to deal with security or volatility risks. The fund would deal with positioning in and out of crypto assets, and with security of funds which would result in lower risk than holding any other crypto asset. During a bear market or market correction, crypto assets outside of fiat pegged ones, would suffer a loss in value, which could be severe. An individual holding BTC or any other coin, would have significant risk if holding funds at an exchange, but would also have a hard time securing funds unless tech savvy: it’s a real problem, having no way to hedge exposure without dealing with custodians and associated risks due to how correlated all coins are, and dependent on BTC. I haven’t seen a similar project, outside of the ones that offer tokenized fund management — which aren’t doing too well for now.”
ICO Alert: What is the Caviar Intelligent Predictive Model and how far along is it in development?
Caviar: Yes, we developed our own Intelligent Predictive Model (IPM), an artificial intelligence predictive algorithm based on a machine learning approach for price forecasting in both short and long-term projection timescales, allowing for stronger predictive power and more effective asset allocation. IPM uses historical data and a mixture of qualitative/quantitative metrics, in combination with analysis of the underlying cryptocurrency ecosystem, social signals, and trends. Data is automatically collected from various sources and helps us make decisions about future investments. IPM has been used for a few months now, but we are always building and improving it.
ICO Alert: How does investing in real estate through Caviar differ from traditional ways such as through a real estate investment trust? What are some of the advantages?
Caviar: Caviar doesn’t directly invest in real estate, rather, we invest in real estate debt. This is a fairly liquid investment with market-leading returns, while backed by real assets. Further, Caviar’s diversified approach in real estate, cryptocurrencies, and crypto-assets lowers the cost of management, reduces entry costs for investors, and removes the problem of illiquidity associated with traditional real estate investments. In a recent Caviar blog post, our partner Guy Neumann further explains the role of real estate in Caviar’s diversification strategy. But basically, Caviar combines large cap and most stable cryptocurrencies, select new token projects, and real estate, utilizing its’ proprietary Intelligent Predictive Model in order to perfectly time investment decisions. Our team requires borrowers to have demonstrated a history of completing at least three real estate development projects in the past. We work with seasoned developers, those who take their business seriously and do it full time.
ICO Alert: Describe Caviar’s plans for the quarterly profit and dividend distributions, as well as the token buybacks. How soon can ICO investors expect to participate in this profit sharing?
Caviar: We expect the first profit sharing to take place after the end of Q1 in 2018. Caviar will pay out 75% of net profits, in ETH, via smart contract to CAV token holders. We will publish more specifics as we get closer to that date.
This is an interesting point, we think CAV token is a long term hold for a lot of people because of our profit sharing. For those that own the CAV token, they know they have exposure to top crypto portfolios, with a portion in more speculative projects with potential high returns, and real estate debt, which can be seen as a “stabilizer” in case of market downturns.
In a recently published back-tested study of Caviar’s historical performance, our partner Alex Shvayetsky noted that:
“If history were to repeat itself (of course, we cannot guarantee future performance), then based on distributions alone, anyone buying tokens at pre-sale with a 30% discount (token price would be $0.07) would triple their investment within one year. These results are not taking into account any token appreciation, which, based on historical performance and Caviar’s buyback mechanism (future performance is not guaranteed), could be significantly more. And, as impressive as these numbers are, Caviar’s long-term advantage would be even more evident in the bear crypto market. During market downturns, which are inevitable, Caviar would be in a unique position to shift more funds to real estate and still provide returns to investors, as well as exposure to real assets as collateral.”
ICO Alert: What does success look like for Caviar? What are the biggest risks and hurdles Caviar will need to overcome to consider the project a success?
Caviar: Success for us is the following:
Most of Caviar’s investors are long-term holders and they realize the value of CAV tokens because our top-notch business practices and continued market-beating profit sharing.
The Caviar Platform provides value by offering real estate developers around the world a convenient and inexpensive way to raise funds and participate in various real estate communities.
ICO Alert: How far along is the project today and when can contributors expect to use the platform? What does the roadmap look like for the rest of 2017 and 2018?
Caviar: The platform is under development. We will expect to see beta versions in the beginning of the year and are shooting for general availability in the summer of 2018. Caviar Platform is a key focus area and we are putting a lot of effort behind it. I have been developing software for the majority of my career, and feel confident about our future here.
ICO Alert: As a non-Caviar question we like to ask for unique predictions for the ICO and cryptocurrency space in the future. Where do you see both in the next 3–5 years?
Caviar: ICOs have raised more money than VCs in 2017 and I think the trend is going to continue. I foresee more regulation in 2018 though, and in the next 1–2 years, ICOs will become more heavily regulated in most countries. I predict in three years, most ICOs will happen in 2nd and 3rd world countries, because they will be heavily regulated in “rich” economies. We are certain to see some lawsuits materialize, targeting scams and other unsavory business practices. However, ICOs will live on as a method of raising funds and getting new tokens into the hands of many.
Pre-ICO Information (if applicable)
The pre-ICO began on December 1, 2017 and ended on December 7, 2017. There was a minimum of $500 for contribution with the following bonus schedule based on contribution amount:
$500 — $9,999: 20% bonus
$10,000 — $24,999: 25% bonus
$25,000 and up: 30% bonus
The pre-ICO sold out raising its pre-ICO hard cap of $1,500,000.
The ICO begins on December 12, 2017 and ends on January 31, 2018. The price per Caviar token is $0.10 with the following bonus schedule:
Days 1–3: 15%
Days 4–6: 12.5%
Days 7–9: 10%
Days 10–12: 7.5%
The Caviar token is an ERC-20 token and so an ERC-20 compatible Ethereum wallet must be used to contribute. As long as it is an ERC-20 compatible wallet, like MetaMask or MyEtherWallet, your contribution wallet address is where you will receive your Caviar tokens. Do not send from exchange wallets, like Coinbase, Kraken, or Bittrex, and do not send from Jaxx or multi-signature wallets.
Token Distribution Information
There are a total of 375,000,000 tokens being created with 318,750,000 available across the pre-ICO and ICO. Tokens will be distributed within 30 days of the end of the ICO.
The allocation of tokens is as follows:
85% of all Caviar tokens created will be sold at the Token Generation Event (ICO).
12% will be allocated to partners and advisors.
3% is reserved for bounties.
Use of Crowdsale Proceeds
The funds raised by the Caviar crowdfunding campaign will be distributed as follows:
80% will be invested directly into the Caviar portfolio.
10% will be used to cover administrative costs.
5% will be invested into development of platform technology.
5% will be allocated into a reserve fund.
Kirill is a serial entreprenuer with over a decade of experience and several multi-million dollar exits in the IT services space. Kirill bought his first Bitcoin in 2013 and participated in dozens of token generating events. Kirill graduated from MIT’s entrepreneurial master’s program and has invested and advised over 20 companies as an active angel investor. Kirill co-hosts the Boston Crypto Meetup series.
Guy is an experienced entrepreneur with a demonstrated history of working in the real estate industry. Guy runs a successful construction company and has strong expertise in development, estimation and other areas of real estate. He is a strong entrepreneurial professional with a bachelor of applied science (B.A.Sc.) focused on finance and economics from University of Hartford.
For a full list of team members are advisors please visit the Caviar website.
View the Caviar website here.
View the only comprehensive list of active and upcoming ICOs here.
(1) Caviar Website, Caviar, (2017)
(2) Caviar Whitepaper, Caviar, (2017)