Real Estate Meets Rewards Meets Blockchain with LingoCoin & I have Questions
Crowdfunding real estate investments while earning free nights' stays and other real-world rewards is LingoCoin's strategy. I'm skeptical that LingoCoin can survive with it.
How Is The Company Culture?
Watching the evolution of blockchain technology has given me the superpower to sniff out companies I align with. I have dodged many projects that all the alpha callers were pumping. I stayed back, researched, and watched as guru after guru was dead wrong about their bags.
Do not worry; they unloaded their bags on the way up the pump for an excellent return on collective ignorance. Putting lipstick on a pig, beer goggles on the crowd, and telling them it’s a beautiful model on the runway is a visual that comes to mind.
I've watched company after company raise a couple of million dollars, create a following of over 100K out of thin air, and, with the help of influencer marketing, take over everyone’s headspace, only to fizzle out over the year to nothing.
Their tweets were empty voids that received no organic activity. The founders towed the company line using cookie-cutter language from a slide deck lacking any soul to connect with. The Discords were empty, with mods and bots posting the website and Twitter RSS feeds. This “marketing” strategy does not impress me and is a red flag.
The significant funds are spent on large teams, advisors, industry parties, and influencer payments. At the same time, fewer and fewer business updates happen, showing a need for more worthwhile attention to the community already acquired.
This lack of attention concerns me as an early investor, and I have withdrawn from my positions. The game is over if enough early investors leave before the company can generate enough liquidity.
Then, the game of staking begins. Staking a position gives the company a runway to build on. While I agree with this short-term strategy, the company needs to have multiple streams of income for me to understand its long-term viability.
The headlines sound great, but I need details on the tokenomics. How does this “thing” make money year after year while keeping the culture nimble and robust?
Evaluating the Tokenomics
How does the business make money?
A successful token will drive adequate value for its holders while funding the company’s vision.
I always point out that companies should avoid a Ponzi scheme model. The simple question, “Does the company’s strategy require additional investors to pay for the initial investors’ expected returns?” will yield a temperature check. Here is a quick list of red flags I want to know about how a company is making money when researching companies.
With any investment, I put my money into the hands of others to carry out their business ideas. I want to ensure they’re not stealing my money to pay for previous investor returns! If they do that, who is going to hold them accountable? What is my recourse?
location . location . location.
Where is the company located? What are the terms of service on the digital assets? Is the company based in the United States of America? Where the company is incorporated dictates the rules of the game.
I am based in the United States, which impacts me significantly when I hold digital assets and my ability for recourse should I need to go to court over business deals.
Understand the KYC (KNOW YOUR CUSTOMER) requirement for consumers and companies doing business in the United States. Be vigilant, as these are avenues for scammers to get all my information. E
I need to be sure I’m giving my information to when performing the KYC process. Usually, I need to take a picture of my license or passport, which gives the scammers everything they need to create a nightmare for me.
I’m not a lawyer or tax professional, so consult them before doing anything related to your investment financial matters. All transactions are irreversible and final when interacting with smart contracts and blockchain technology. We must double-check and triple-check that we are sure of our next move, as it will impact our lives indefinitely.
Who is LingoCoin Rewards?
I was approached as a Rug Radio creator to write my thoughts about LingoCoin rewards system. I am being paid to write this for LingoCoin.
LingoCoin boasts a bold strategy to buy real estate and use the proceeds of those rental fees to build a rewards program. Founders of LingoCoin HM Rawat and David Amsellem built and sold a Rewards Program to Accor Hotels in 2016. They aim to do the same program using blockchain technology on an L2 network of Polygon.
How does It Make Money?
Buy $LINGO tokens, hold them, receive loyalty points, and then redeem them for real-world rewards like gift cards or vacations.
To make it sustainable, the team has programmed a flat fee of 2.5% on every $LINGO transaction, which is used to acquire real estate in cities like London, Paris, Miami, and Dubai.
The real estate will then be used to earn rental income. The entire net yield will be used to support the Lingo Reward Store, and tokens will be repurchased monthly, driving demand and increasing the token price.
In the future, the Lingo DAO will vote on which real estate assets to be purchased.
The Culture of LingoCoin
LingoCoin understands scale while relying on the impact of influencer marketing. They’ve partnered with a group of influencers with significant reach. Highlighting the reach they have has built LingoCoin a list of over 150,000 users on the waitlist for the ERC20 $LINGO token drop.
If you want to get in on the drop here is a link to engage with their ecosystem to get started.
Going Mobile through New Partnerships
If they use the $LINGO coin’s ability of 2.5% fees they need other ways to add value to the $LINGO ERC20 Polygon token to drive value. It appears that LingoCoin understands this and is partnering with companies like Fizen, which is attached to SotaTek, to launch an exchange where users buy, sell, and exchange cryptocurrency. This would undoubtedly help $LINGO in their plan to generate revenues on the 2.5% exchange they have programmed into the ERC20 polygon smart contract.
I have Questions
How will the DAO votes be distributed?
Will the United States-based investor be included based on current SEC rules?
How long is the staking period of $LINGO
Can we see a sample of the rewards program?
Which real estate properties would be the ideal targets?
How does the purchase of $LINGO buy real estate?
Is the $LINGO Cashed out to buy real estate with FIAT?
How do we maintain transparency of the off chain transactions?
What is the holding company’s name, and who owns the holding company?
How will the exchange and mobile app partnerships play into the revenue strategy?
We need a real estate win in the crypto space. The recipe is there. I want a success story to mimic the popular series Altered Carbon! Please! Going on vacation and having our virtual assistant available through our RayBan glasses. It’s coming, it’s so close. Someone make this real.
MEME OF THE WEEK
See you Next Sunday
-Ron