Rentberry Rating Review

Ratings

We assign the Rentberry project a "Stable" rating. We believe that participation in the project token sale may be of interest to future users of the platform, as well as to long-term investors who are willing to bet on an increase in the number of its users as well as on growth of the popularity of cryptocurrencies and their use in the future for payments on the real estate market.

The Rentberry project is entering a promising market. Constant growth in real estate prices obliges most people, especially the younger generation, to rent rather than buy houses. This trend is expected to continue.

The project already has a functioning business and a team with considerable experience in the real estate market. The fact that this team has been implementing the project since 2015 suggests that it can be trusted to a greater extent than if it were developing a project only at the planning stages.

At the initial stage the project attracted more than $4m. This may indicate some interest in the project from major participants.

Rentberry offers a number of interesting services. However, it is quite difficult to assess their relevance to market participants as they are new services.

At the same time, we note a number of points that potential investors should pay attention to when deciding on the purchase of BERRY tokens.

In our opinion this project will achieve popularity only within the limits of jurisdictions where circulation of cryptocurrency is allowed. This significantly limits the potential market for the project.

The transition for real estate market participants to transactions in cryptocurrency has not yet occurred. A number of projects have failed trying to address this issue. It is not clear why market participants would turn away from transactions in fiat currencies. Also, due to a transition to payments in cryptocurrency, the project jeopardizes current activity, because a number of customers could simply refuse to buy tokens or receive them as payment.

The pricing model on the platform requires further elaboration, since the binding of domestic prices to non-fiat currencies may incur additional risks.

All of the above factors as well as those discussed in the "Project risks" chapter, prevent us assigning a higher rating to the project.

General information about the Project and ICO

Founded at the end of 2015, Rentberry, a leading business in the field of long-term leasing on the international real estate market, with a database of 120,000 users and 224,000 real estate objects, aims to implement blockchain technology on its platform.

The process of transition to the new technology aims to solve the following problems inherent in the rental market:

  • Reduction of costs for tenants and landlords.
  • Security and transparency.
  • Elimination of intermediaries.

Website

Whitepaper

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Smart contract platform: Ethereum blockchain

Contract Type: ERC-20

Token: BERRY

 

Token Sale:

Start: 05.12.2017 (9:00 am, New York, EST)

End: 28.02.2018 (11:45pm, New York, EST)

Minimum per customer: 0,1ETH/250 BERRY

Maximum per customer: none

Token Price:1ETH=2500

Soft cap: 3 000 000 USD

Hard cap: 30 000 000 USD

Accepted currencies: ETH, BTC

The token sale is being held since December 5th and offers a bonus program:

Purchasers who commit to purchase a large quantity of BERRY Tokens during the sale period will be eligible for the optional extra bonus. All such bonuses will be discussed individually with each potential buyer (“Private Sale”).

Tokens purchased during the token sale will be credited to participants as soon as they finish.

The tokens are planned to be distributed as follows:

  • 70% of BERRY tokens will be allocated to the Token Sale;
  • 20% of BERRY tokens will become a part of the Reserve Fund;
  • 10% of BERRY tokens will be distributed to the founders of Rentberry and employees.

The chart shows how funds generated from the sale of tokens will be distributed:

Tokens intended to be paid to the team will be blocked for 4 years. Each year some of these tokens will be unlocked.

All tokens unrealized during the token sale will be burnt.

Description of the services and scope of the project

Rentberry will use blockchain technology to optimize the entire long-term lease process. The platform provides the following services to homeowners and tenants:

Landlords

Tenants

Listing Marketing and Syndication

The ability to list any property on the platform with a specified asking price in BERRY tokens and include detailed information on the given rental unit. Using BERRY tokens, landlords can promote listings on rentberry.com or syndicate to additional rental sites for increased reach and visibility.

Focused Property Search

A possibility for displaying filtered search results with detailed analysis of key information for each rental unit:

  • Conditions and facilities for living.
  • Online planning of visits in order to see the property and meet with the landlord.

A communication system that allows potential tenants to contact their landlord.

Rental Price Auction

All rental applications from potential tenants are collected in a user-friendly format, so landlords have an opportunity to accept or reject any application. This mechanism will allow to select tenants on the basis of requirements important for the landlord (including price).

Transparent Application Process

Possibility to apply online without sending confidential information via mail.

The Rentberry Scoring Methodology

The opportunity for tenants and homeowners to provide feedback, which will also allow both parties to evaluate each other on links to these reviews.

Security of Tenant Information

All personal data will be fully owned and controlled by the tenant and will only be visible to the landlord.

Rent    Collection    and    Use    of             BERRY Tokens

The possibility of obtaining rent in BERRY tokens, as well as hiring third-party service providers such as cleaners, workers, plumbers, electricians, etc., paying for their services in BERRY tokens.

Rental Contract Execution

Possibility to formalize a legal contract which is signed by the parties using own keys/blockchain IDs. The conclusion of the contract will result in automatic payment (transfer of BERRY tokens).

Maintenance Requests

Once a property has been leased, tenants will be able to conveniently submit service requests to landlords.

 

Crowdsourced Security Deposit Coverage

The Rentberry community will be able to use BERRY tokens to cover a portion of the collateral deposits for selected tenants in exchange for reward in the form of BERRY tokens.

The following is a detailed description of the main platform modules which will be used to implement all the above services.

1. Auctioning technology

The main objective of this technology is to ensure an optimum assessment of property by landlords, while potential tenants have full visibility of competing offers and have opportunity to discuss renting conditions online.

2. Proprietary scoring system

A mechanism for the calculation of individual reputational ratings on both sides of the transaction. The scoring system is a statistical method of screening. A scale from

100 to 1000 is used; potential risks will be reflected in this figure. Individual assessment of Rentberry will be based on data from many sources, including:

  • Information from applications.
  • Previous payment performance.
  • History of evictions.
  • Bankruptcy records.
  • Data and scores from credit bureaus.
  • Past due accounts.
  • Publicly available information.

The functioning of this system is schematically depicted below:

3. Crowdsourced security deposit network

A community of users on the platform whose members will be able to finance a portion of the required security deposit. Thus, Rentberry will allow quality tenants to unlock most of the money in security deposits.

This mechanism works in the following way:

A tenant must pay a minimum amount of 10% of the actual deposit.

  • Community members will be able to analyze key information about the tenant (including their own rating).
  • They will then be able to send offers (the amount they are willing to help with and the rewards they wish to receive in return).
  • The tenant will receive all offers from the community and be able to choose the best ones.

Rentberry will also be able to participate in the process of financing security  deposits, so it is expected that quality tenants will be able to obtain help for the remainder of their deposit (90% of its value).

The landlord will have instant access to security deposits provided by the tenant and contributors in the event of default on the lease or damage to the property. Depending on the amount claimed by the landlord, funds are unlocked by the tenant. If the tenant's funds are not sufficient to cover the damage/rent, the funds of the contributors will be available to the landlord in sufficient amount.

In the case of default on rent or damage to property, a tenant's score will be negative, as contributors and landlords will be able to evaluate and write a review which is likely to limit crowdsourcing of security deposits for this tenant in the future.

4. Rent payments

With the help of BERRY tenants will be able to pay rent online. Rental payments will be without commission. A history of lease payments will be added to private tenant profiles and will be used in calculating a tenant's own score.

This functionality is scheduled to be launched in 2018.

5. Third party service providers

Rentberry plans to collaborate with third-party service providers and invite them to join the platform. They will provide services according to their activity, location and price for each service.

6. Utility bill payments

Cooperation with companies such as PG&E is also planned, to offer users the chance to pay utility bills in BERRY tokens directly through the platform.

At the moment the team is also developing another service, Smart Locks; with this the landlord will not need to be present to allow a potential tenant to enter a property, as the tenant will simply need to use their smartphone to unlock the door.

All information on trends and fluctuations in housing prices will be stored on the platform, which over time, as statistics are gathered, could be made use of by a variety of organizations from many sectors.

The functionality of the Rentberry platform will have some peculiarities. We think that such services as rent payments, third party service provision and utility bill payments will be very difficult to implement on a large scale. For this purpose BERRY requires wide adoption; currently even the much more popular Bitcoin is not often accepted as payment by organizations. However, there are also a number of services that could be of great interest to users, such as auctioning technology and the smart locks mechanism. Perhaps users will show some interest in the crowdsourced security deposit network, but everything will depend on the platform's popularity and the reward for those who are ready to co-finance a deposit.

Engineering solutions

The smart contract repository is available on Github:

BERRY is a cryptographic token of the ERC20 standard based on Ethereum, available for storage in various wallets compatible with this standard. According to the founders, 3 people are engaged in its development.

Token name - Berry

Symbol - BERRY

Decimals - 14

Blockchain provides a mechanism for the protection and transfer of funds, as well as support for complex multilateral agreements that manage these transfers of funds using smart contracts.

Blockchain will ensure that the following data are preserved and unchanged:

Tenant personal data, such as financial information, rental history, credit rating, links and reviews.

  • Transaction data — property, location, date, amount, result. This information can be used in conjunction with Rentberry to perform analyses in order to improve the algorithm, offering advice to tenants on how to set prices based on current market conditions.
  • Security deposits will also be held on the blockchain platform, with the risk profile of the client and past history.

In the event of delays in processing transactions on the Ethereum blockchain network, which will adversely affect the performance of the platform, Rentberry will consider the possibility of using a public/private blockchain hybrid model. In this model, tokens will be on the public chain, and Rentberry would create its own blockchain network ledger which supports smart contracts to track all transactions on the platform. Token transfer will be provided through a relatively secure standard interledger protocol (such as an independent multinode). Platform users will have full access to this private chain ledger. Rentberry will move all transactions and smart contract activities to the Ethereum public chain as soon as it can fully support the Rentberry transaction flow without any degradation to the platform performance.

Regarding Smart Locks, identification of a potential tenant will be done using the existing identity verification solution (e.g., Civic Technologies).

Blockchain and smart contracts will manage and implement functions on the platform, including:

  • Know Your Customer / Anti-Money Laundering.
  • Reputation.
  • Proof of biometric authentication (NOT storage of biometric data).
  • All activity that modifies the smart contract based identity profile.
  • All agreements by parties.
  • All activity that drives token movement.

Each party will have their own personal key/wallet stored on a mobile device, protected by biometrics; any user activity managed by a smart contract will be initiated/approved using the identification wallet as conclusive evidence of consent.

Market Review

The dynamics of housing costs depends on many factors: starting with the demographic situation in the region and ending with the purchasing power of the population. We should also note that elite real estate in Europe stands alone: In some countries in the ‘old world’ the demand for it is stable from year to year and does not depend on the aforementioned factors. In European countries there exist all the conditions for stable growth for the cost of apartments and houses.

Analysts from the Global Property Guide (GPG) point out that rental income in most European cities is associated with risks: where there are high risks, incomes are also high. For example, the most tangible rental income can be obtained from the following countries in Europe:

  • Moldova — more than 10% per annum is brought from renting out an apartment at the average price of €965;
  • Montenegro — 7.53% at an average rental price of €1055.

In addition, according to GPG experts, incomes are high where the mortgage market is not developed and interest rates on loans are high.

According to estimates from experts worldwide there are more than 641m units of real estate being rented and about 2.3 bln people living in long-term rent.

The right to rent a house or office is key to real estate. After joining the European Union, countries which had treated residential real estate conservatively for many centuries, preferring to have it in property, were subjected to the general global sentiment. Now the percentage of rented housing in the EU is 35.8%.

Historically in Germany the population preferred to live in rented houses and apartments — 54.1% of residents are loyal to this way of life.

The Netherlands tries to combine conservative and modern tendencies. 50% of residents own housing, and 50% of real estate is for rent.

Leading positions in the list of countries where rental is favored, are occupied by those with developed tourism; Spain and Portugal are amongst these.

According to data obtained from Eurostat, investors have strong control over the leased real estate segment and at the moment the cost for rented dwellings has increased by 4.5% over all European countries.

Housing prices and demand for rent in the United States are growing as there is a good demographic situation and a healthy labor market. Young people do not have the opportunity to purchase houses, but can afford to rent for a while.

A future investor can buy an apartment which they do not need to live in. In this case, finances will not just lie in the bank but bring rental income.

Realtors and investment consultants in the United States are closely studying the real estate market and find it promising. Statistics show that now the highest yield is in the west of the USA, but in other zones there is also positive growth for indicators. Recent economic studies have shown that apartment rentals in San Francisco, Sacramento and San Jose have yielded the greatest return for investors. There is potential for price growth in Silicon Valley as well.

The main thing is that an investor in the USA can receive two types of income: from annual increase of market value and in the form of rent.

According to the largest rental marketplace in the United States — Zillow Group, the monthly number of visitors to the rental section is 32m people, and 4 out of 5 rented US houses have been viewed on sites of the Zillow Group. The total number of potential tenants in the United States is 40 million.

Thus the Rentberry project plans to develop in a very promising and constantly growing market, which certainly increases chances for a successful launch and subsequent expansion. All of this will allow its business to scale more rapidly.

Competitors and competitive advantages of the project

Currently the market for rental housing worldwide has a huge number of participants. Competition is growing and every year new players appear. Many experts recommend contacting local brokers, various sites provide requests on demand, there are offers from local landlords and real estate agencies.

Market participants can be divided into those who offer rental housing for the short and long term. The Rentberry project plans to expand in the long-term rental market, so this review does not consider companies that offer services in the short-term rental market. It is enough to note that there are many of them. Among the most popular are services such as Airbnb, Wimdu and Homeway.

As we know, there is nothing to prevent an individual from renting an apartment for a few days in order to start searching for a long-term rental there and then. Each country has its own local services, such as Trulia, Hhappyhouserentals, Longtermlettings and many others, there is a huge list; these services enable one to easily rent real estate without problems. Therefore any real estate agency, site or platform for rentals and even regular newspapers with announcements will be direct competitors of Rentberry.

However, all such services do not have some of the features that distinguish the Rentberry project, which include:

  • The possibility for auctions.
  • A smart locks system.
  • Low cost for services.

At the moment there are no uniform international search services for the long-term lease of real estate and therefore Rentberry plans to occupy this niche. The reason for the lack of players in this segment could be the fact that for people who arrive in another country or city, it could be much easier to decide on the spot rather than to organize remotely. Certainly there is the question of trust in the contracting party.

Using blockchain technology, Rentberry plans to address security issues. However, in our view it will only be possible to do this within a jurisdiction where cryptocurrencies are recognized as means of payment. In other places the risk may be comparable to a situation where a tenant tries to agree with the landlord to conclude the contract in normal correspondence.

As one of the advantages of the platform, a mechanism for unlocking a security deposit for tenants with a high reliability rating is detailed in the documentation. In this market however, where participants can invest in the field of real estate, there are currently a large number of crowdfunding platforms which enable participants to earn from renting real estate, for example:

As for competitors using blockchain, an ICO for the Relest project is being staged simultaneously with the Rentberry ICO. This project offers similar services. The ICO for this project was staged from November 25, 2017 to January 25, 2018. The results are not yet disclosed.

It is clear that the Rentberry project is entering a highly competitive market. The above advantages can buy the project some time, but in order to increase share in this market a large-scale marketing campaign not only for the platform, but for the entire cryptocurrency sphere will be required. For this reason, we believe that the introduction of blockchain in this area may not bring the results expected by the founders, because real estate is a field where all payments, payment services, returns on investment and other items are calculated in predominantly stable fiat currencies such as the Euro, Dollar, Pound and others.

At the same time, we believe that the pace of development of modern technologies will cause the majority of competitors to move to blockchain on their platforms, which automatically allows them to enter the international market and strengthens competition.

Risks

Apart from the traditional risks associated with the crypto industry, the project also has a number of additional risks that should be highlighted.

First of all, we note the fact that in renting real estate there is very strong competition, and the transition to blockchain here may not work. A number of services offered by Rentberry could certainly be of interest to people, but they will more likely help buy time than give a clear advantage over the big players. The risk that the project will not receive a significant push for development through the transition to blockchain, is in our opinion much higher than it seems at first sight.

In addition, there is even a risk of losing some clients, because historically the real estate market attracts a class of conservative investors who by virtue of their conservatism, could perceive the introduction of cryptocurrency for payments as an additional risk. It is undoubtedly true that investment instruments such as bonds, deposits and real estate imply low risks and the receipt of income in a stable, generally recognized currency.

Despite the fact that when reviewing the project we were able to confirm the availability of a financial model for the project, some closeness for investors concerning this particular issue on the long-term development horizon could be also perceived by investors as an additional risk.

The documentation indicates that the value of 1 BERRY at the token sale stage is pegged to ETH and BTC. Given the high volatility of cryptocurrency, and the fact that only in recent months a number of cryptocurrencies have increased by more than 100%, this creates an additional risk, because for buyers of BERRY the price of 1 token in fiat currency becomes more expensive.

The token sale lasts 85 calendar days, while the white paper has information that at its discretion management can shift the end date by 90 days, which will total 175 days. This fact could be perceived by early investors as an additional risk.

Pricing on the platform is described only in BERRY tokens. We see a risk that, in the event of a token price increase, the product may become uncompetitive and believe that the founders should work more closely on this part of the project.

Team

Rentberry’s decentralized platform is being developed by the founders of a company of the same name, providing a service for long-term housing rentals bringing together tenants and landlords, and enables automation of all the standard tasks associated with housing rentals.

The Rentberry project is being created by 23 people who share experience in their fields of activity.

Leading positions are occupied by:

Alex Lubinsky (LINKEDIN) – CEO.

Has been present since the beginning of the project (in 2015). Responsible for the overall concept, development of the project and financial and economic issues. Former investment banking executive who has founded and sold several companies. Real estate owner and successful entrepreneur responsible for defining Rentberry’s vision.

Education:

  • University of California, Berkeley 2001-2004

Lily Ostapchuk (LINKEDIN) – Co-Founder and CPO at Rentberry.

Lily has been involved in the project since 2015. Managed and operated a number of rental properties across the US and Europe. Product launch and marketing expert with a deep knowledge of how to position and scale the product.

Education:

  • Columbia University in the City of New York 2009-2010
  • Taras Shevchenko National University of Kyiv 2002-2008

Aleksey Perfilov (LINKEDIN) – Co-founder and CTO at Rentberry.

He has been involved in the project since 2015. Worked at a number of prominent IT companies, including Hi5, Altera, Phoenix Technologies, and Amazon. Full stack engineer, blockchain evangelist and a focus-driven coder with 15 years of experience.

Education:

  • Stanford University 2007-2008
  • University of California, Berkeley 2001-2003

An additional 20 people are working on the project in such directions as: development, marketing, sales, design, testing. Among those whose experience is confirmed in open sources:

Eugene Terentev – Blockchain Developer

Eugene Kurasov – Backend Developer

Nadia Sidko – Frontend Developer

Alexander Vilko – Frontend Developer

Anton Kazanov – Frontend Developer

Alex Kotovskov – Product Designer

Liza Repko – Visual Designer

Serge Sokolov – Marketing Director

According to the founders, by the end of Q2 2018 it is planned to increase the project staff number to 30.

Advisory Board:

15 people are involved as advisors, many of whom have experience in real estate, legal and financial industries.

Among the advisors we note the following:

  • Adi Ben-Ari – CEO Applied Blockchain
  • Glen Reed – Partner King & Spalding
  • Andrew Barlow – Managing Director Venturian
  • Bijal Shah – Principal of WP Global Partners
  • Max Tappeiner – VP of Operations Las Vegas Sands Corp.

Legal support for the project is provided by specialized companies: Latham & Watkins LLP (general corporate counsel) and RedBrick IP (intellectual property and patent lawyers).

Having analyzed the composition of the participants, we see the team consists of managers having experience in the real estate market. Their experience has enabled successfully developing the Rentberry project, attracting more than 120,000 clients and 224,000 real estate objects to the platform before the start of the token sale, which ought to give a good start to the further development of the project.

Development strategy and roadmap

The documentation and website provide all necessary information concerning the future development of the project. The main goal for the company in 2018 is to become an international platform, developing and improving its services by transferring all the resources and managing potential of the Rentberry platform to blockchain technology.

The documentation presents information on the staged implementation of development:

  • At the moment, the company is seeking a patent for its auction technology, enabling online discussion of terms for renting a property.
  • The next step will be to provide an opportunity for participants to co-finance security deposits on the platform and receive a reward for this.
  • It is then planned to provide an opportunity to pay for leases on the platform without any additional fees or utility charges.
  • In the near future Rentberry plans to cooperate with third-party service providers (janitors, etc.).
  • The creation and development of the Smart Locks technology is already underway.

Below are the plans for platform development in the international sphere:

The white paper also presents a detailed map of the Rentberry platform’s development plans to 2020.

Negotiations are underway with a number of exchanges.

Thus the project has clear and transparent development plans, the progressive realization of which will no doubt contribute to the systematic achievement of the set goals and expansion of the business.

Marketing strategy

According to the published plan for distribution of funding obtained on the website and in the white paper, 20% of funding raised during the token sale will be allocated to marketing. In the event that the soft cap is reached, the size of the budget for future promotion of the product will be more than $0.6m (and if the hard cap is reached, $6m). To date, bounty hunters are engaged in the promotion of the product. 2.5% of the total issuance of tokens will be allocated to the Bug Bounty Program.

Bug Bounty Program: “Our goal is to make sure our platform will adhere to the highest security standards and have a minimal number of bugs. Even though we currently have a team of 23 people (the team will surely increase with our expansion), we do understand that it is crucial to reward the public for helping us build a platform with as few flaws as possible”.

The distribution of tokens for the bounty program is as follows:

  • 20% - Twitter.
  • 20% - Facebook.
  • 20% - Article writing.
  • 20% - Provision of feedback.
  • 15% - Becoming a Rentberry Friend.
  • 5% - Translation.

To attract investors during the token sale period there will be a system of bonuses (details in the chapter "Project Information and ICO"):

The global marketing strategy includes:

  • Expansion of activity at the international level, cooperating with other companies in the field of real estate.
  • Expansion of partnership relations with local credit bureaus, banks and insurance companies.
  • Launch of the platform within three years in the markets of countries such as Canada, New Zealand, Australia, Great Britain, China, Korea, Japan, Germany, France, South America and Africa.

The development fund will be used for strategic partnerships in branding and marketing initiatives with local credit bureaus, property managers and real estate companies. Long-term partnership relations with leading companies in the spheres  of blockchain, real estate as well as legal and technical aspects have already been established: Cryptonomos, Melrose PR, Applied Blockchain, Coinfirm, HelloSign and Move Inc.

There are references to the project in the press: Inc., Forbes, Wsj., BBC News a number of others.

Representatives of the project regularly participate in international exhibitions and conferences. Events with Rentberry specialists participating are planned for 2018.

Exhibitions and conferences 2018

Date

Name

Venue

January 18–19

The North American Bitcoin Conference

Miami, USA

February 16–18

The Bitcoin, Ethereum & Blockchain SuperConference

Dallas, USA

February 22–24

Blockchain & Cryptocurrency Con 2018

Dallas, USA

To summarize, the long-term strategy for platform promotion involves building partnerships primarily.

In our opinion to successfully complete the crowdsale, the founders should carry out advertising campaigns through project sponsors, and get articles published more often in the mass media.

Strong marketing support for the Rentberry project could give the platform a chance to reach its set targets for long-term rental market coverage.

Economy of the project

The economic model for the platform is described in the white paper and is quite easy to understand. According to the documentation, monetization of the platform would be enabled by the following:

Subscription fee. Homeowners and managers with a large number of properties (more than 3 objects) will pay 150 BERRY per month (about $30). These could be real estate corporations, brokerage firms or maintenance and management companies as well as individuals.

Application fee on the platform. The cost of an application for potential tenants (including access to Rentberry Auctions technology) is 1000 BERRY (about $200). If the landlord accepts an application, the smart contract allocates the amount as follows:

  • 50 tokens (around $10) are held by the platform for services provided.
  • 950 tokens are transferred to the landlord as part of the first month's rental payment.

In case the landlord rejects the application, the whole amount (1000 BERRY) is returned to the tenant's wallet.

Transaction fee. For each transaction on the platform, Rentberry will collect commission — 0.25% of the transaction sum transferred to Rentberry Reserve.

Rentberry Reserve is the platform's own wallet, used for the following purposes:

  • For future distributions, real estate community initiatives and provision of internal platform promotions (e.g. gifts and bonuses to homeowners and tenants for taking certain actions or achieving certain stages).
  • To resolve problems related to the handling of BERRY tokens. Using Rentberry Reserve to buy/sell tokens in the open market or the annual burning of a small percentage of tokens to maintain liquidity.

Commission for platform services. Tenants and homeowners will be able to order various services from third-party vendors by paying them with BERRY tokens. The platform will charge a fee of 1% of the total cost of the required services.

The reward mechanism concerning the Crowdsourced Security Deposit Network should be noted separately. This mechanism will allow tenants to make only a partial security deposit collateral - 10% of the full amount; the rest could be paid from co-financing by community members or even by Rentberry itself for a reward of more than 5% of the deposited amount. According to Rentberry specialists’ research, on average community members will request from 3 to 7%.

The white paper illustrates a scenario for possible platform growth based on current data:

The documentation does not contain any more detailed information regarding the financial model. In the course of writing this review we have received all the necessary additional information from the founders. Such data are intellectual property and are therefore not included in public access documentation. For this reason, we can only confirm the existence of a financial model for the project and its thorough preparation. In addition, the fact that the platform itself has been operating on a commercial basis since 2015 can also confirm the above information.

We believe that the founders should be more open to potential investors in this matter; it may allow investors to draw conclusions about the survival of the project in the future.

Token investment attractiveness

BERRY are infrastructural tokens; they do not confer ownership or voting rights to their holders. The project does not provide any rights for token holders to receive dividends or other profit.

Increasing the number of users on the platform could be a factor in token price growth. The founders expect to attract 4m active users to the platform in 2018 and 50m users by the end of 2020. But we note that despite cryptocurrency and tokens experiencing an increase in popularity, for a large number of people they remain confusing. Due to conservative views many prefer to stay away from payments not made in fiat money. Rentberry could encounter this issue; for this reason, a significant increase in the number of users is uncertain in our opinion.

For investors involved in the token sale, Rentberry provides a system of bonuses (details are in the chapter "General Information About the Project and the ICO").

Investors who have no relation to tenants and landlords may be interested in participating in the token sale, as the platform offers the opportunity of a reward for financing deposits of more than 5% of the amount covered.

Among positive factors influencing the attractiveness of the token for investors are the following:

  • The fact that the project raised $4m from major investors before the token sale, which indicates interest from large organizations in the promotion of the project.
  • An operating platform throughout the U.S., which has over 120,000 users and 224,000 real estate objects.

To maintain liquidity at a sufficient level, Rentberry Reserve will be created to hold 10% of the tokens. With the help of these reserved funds the project will be able to solve problems related to fluctuations.

In the documentation it is stated that a portion of tokens received by Rentberry Reserve could be "burnt" annually. However, no details were given. In our view, such a mechanism could be a driving force for an increase in the token price.

Given all the above facts we believe that participation in the Rentberry token sale may be of interest to:

  • Future users of the platform, given attractive conditions and functioning mechanisms for long-term leasing.
  • Investors with a long-term horizon, accepting the risks identified in this review and willing to bet on a growth in the number of users.

 

 

The information contained in the document is for informational purposes only. The views expressed in this document are solely personal stance of the ICOrating Team, based on data from open access and information that developers provided to the team through Skype, email or other means of communication.


Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud.


We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.