Unveiling the Future of Real Estate with Immotausch

Patrick Riehl, Managing Director of Immotausch, delves into the innovative real estate exchange and investment solutions offered by Immotausch GmbH and the Immochain project, featuring on the use of IT-Coins and XCC tokens, regulatory compliance, and technological advancements.

P: I am the Managing Director of Immotausch GmbH and Riehl Estate Management UG, the companies behind the Immochain project. I developed the Ring Exchange Algorithm and have applied for a patent for it. As the founder of both companies, I feel responsible for ensuring the best possible implementation. My goal is to help people to be „simply living better“ and build real estate wealth more easily. I believe everyone should have the opportunity to exchange entire properties or shares in properties within a ring exchange system.

P: Listings and subscriptions on the platform can also be paid for with IT-Coins, which are valued at €2.50 each. Users who purchase IT-Coins at a lower rate definitely benefit from a price advantage. Additionally, the ITC price will remain stable from 2025 onwards, while fiat prices are expected to rise. This will increase the value of the IT-Coin.

Exchange-Coins (XCC) provide privileged access to all convertible loans in the securities sector, as well as the coins we will introduce to the real estate blockchain (Immochain) in line with our investment models. I may consider making access to the Immochain partially or entirely dependent on the use of ITC and XCC, potentially excluding fiat currency payments altogether. In any case, XCC holders will be given priority. Additionally, price advantages are also planned for token holders.

It is also clear that token holders can exchange ITC and XCC for the coin version of our real estate blockchain once it is created.

ITC and XCC will serve as tools in a consensus mechanism for price increases and decreases in the ring exchange. For example, in property transactions, users can significantly save on ancillary acquisition costs. We are talking about savings of several thousand euros per transaction.

P: Sure

At the core of the ring exchange mechanism is the use of ITC and XCC tokens to facilitate price adjustments for property transactions.

ITC for Price Changes up to €1,000:

ITC serves as the currency for price changes up to €1,000 in offered price or market value. One ITC is used for these adjustments within this range.

Up to €100,000 using ITC and XCC:

For higher values, ITC is used in conjunction with XCC to leverage the ring exchange potential. One ITC can enable price changes up to €1,000, with a maximum of 10 ITC enabling up to €10,000 in price changes. When combined with XCC, this leverage potential increases. For example, 5 ITC and 1 XCC can facilitate a price change of €50,000, while 10 ITC and 1 XCC can manage up to €100,000 with additional potential in Immochain Coins.

Ring Exchange Consensus Procedure:

The consensus procedure in the ring exchange operates similarly to a poker game. Each party can raise or fold, with reductions allowed alongside raises. There is no limit to the rounds of price changes; the process continues until a party involved in the exchange refuses further changes or cannot provide enough coins for the needed value.

Step 1: Initial Request and Acceptance:

Party 1 initiates the process by requesting a price decrease of €5,000 using 5 ITC.

Step 2: Escalation of Request:

Party 2 accepts this request using 5 ITC and adds an additional €5,000 to the decrease using another 5 ITC, making the total request a €10,000 price decrease. Party 3 then accepts the €10,000 price decrease and raises the stake significantly by requesting an additional €90,000 decrease, totaling the price reduction request to €100,000 by leveraging the price decrease using 1 Exchange Coin.

Step 3: Final Agreement:

Parties 1 and 2 accept the escalated request, finalizing the price decrease at €100,000, each using 10 ITC and 1 XCC in total.

Transaction Costs or Burning:

Depending on the membership level of the parties in the ring exchange, the platform may incur transaction costs or burn tokens based on the number of tokens held and the duration they are held. Higher membership levels and longer holding periods generally result in lower transaction costs or burning rates, enhancing the value of ITC tokens beyond their nominal worth in facilitating transactions.

Overall, ITC and XCC tokens play a crucial role in the consensus procedure for price adjustments in the ring exchange, enabling significant savings on ancillary acquisition costs for property transactions. Users can potentially save several thousand euros per transaction.

P: The implementation of ITC and XCC as perpetual loans without payable interest ensures compliance with regulatory standards. Granting a repayment or interest claim would trigger regulatory scrutiny, particularly concerning money laundering regulations. A perpetual loan without payable interest is legally akin to a donation. This structure eliminates the risk of money laundering and prevents misleading promises to investors. Consequently, ITC and XCC remain transparent and compliant with financial regulations, providing a secure and trustworthy environment for all participants.

P: The Know Your Customer (KYC) process for ITC and XCC holders is designed to meet contemporary standards and regulatory requirements, ensuring a secure and compliant environment for all participants. Here is how it works:

Optional Verification for Simple Listings:

Users who wish to post a simple property listing or exchange ad are not required to undergo a KYC process. However, we offer verification as an option even at this stage for enhanced security and trust.

Identity Verification:

For users engaging in more significant transactions or becoming part of the builder-owner community, identity verification is mandatory. Users must provide valid identification documents, such as a passport or national ID card. These documents are verified through a secure and automated system that checks the authenticity and validity of the provided information.

Proof of Address:

Users are required to submit a recent utility bill, bank statement, or other official documents that confirm their residential address. This ensures that the user's information is accurate and up to date.

Enhanced Due Diligence (EDD):

For higher-risk users or transactions involving larger amounts, additional verification steps may be required. This could include a more detailed review of the user's financial history, source of funds, and other relevant information.

Continuous Monitoring:

The platform employs ongoing monitoring to detect and prevent any suspicious activities. This includes real-time transaction analysis and periodic reassessment of user information to ensure continued compliance with regulatory standards.

Multiple KYC Solutions:

Depending on the necessity and practicality, we offer several KYC solutions to identify our customers. These range from video identification with document verification, facial recognition, and address verification to in-person verification and documentation of these data.

Secure Data Handling:

All user data collected during the KYC process is handled with the highest level of security. The platform uses advanced encryption methods and complies with data protection regulations to safeguard user information.

By implementing these measures, the KYC process for ITC and XCC holders not only meets regulatory requirements but also fosters trust and security within the builder-owner community. This thorough verification process ensures that only legitimate users can access the platform and participate in its activities.

P: To ensure the stability of IT-Coin and Exchange-Coin prices in the face of rising fiat prices, we have implemented several key strategies:

Fixed Exchange Rate: From 2025 onwards, the price of IT-Coins will be fixed, ensuring that their value remains stable regardless of fluctuations in fiat currency prices. This stability provides predictability for users and investors, shielding them from the volatility of traditional currency markets.

Controlled Supply: The total supply of our Coins is controlled. There will be no airdrops but only sold Coins or Coins in exchange for services or other currencies. By regulating the number of IT-Coins in circulation, we can prevent inflationary pressures that could devalue the coin. This controlled supply helps maintain the intrinsic value of IT-Coins.

Strong Backing and Reserves: After collecting the first 20 million Euros, IT-Coins and Exchange-Coins sold and held will be backed by a reserve of assets, including real estate and other tangible investments. This backing provides a solid foundation for the coin's value, ensuring that it remains stable and reliable even as fiat prices fluctuate.

Incentive Structures: Incentive structures are in place to encourage long-term holding of the IT-Coins and Exchange-Coins. By offering benefits such as reduced transaction fees, higher staking rewards, and priority access to premium features, we motivate users to retain their Coins, reducing market volatility.

Regular Audits and Transparency: Regular audits and transparent reporting practices ensure that the mechanisms supporting our Coins stability are functioning as intended. Transparency builds trust among users and investors, reinforcing the coin's stability.

Strategic Partnerships: We establish strategic partnerships with financial institutions, real estate developers, and other stakeholders to bolster the ecosystem supporting our Coins. These partnerships help integrate our Coins into broader economic activities, enhancing their stability and utility.

By employing these strategies, we aim to maintain the stability of IT-Coin and Exchange-Coin prices, providing a reliable and predictable digital currency that remains robust even as fiat prices rise.

P: As we aim to establish a new market, we need to keep entry barriers as low as possible initially. Therefore, we currently offer prices such as €50 per year for advertisements. We expect to receive the patent for our ring exchange algorithm by December 2024. With the patent in hand, we plan to double some of our prices starting in 2025 to deliver adequate services and pay competitive salaries to well-qualified employees.

I anticipate that it will take an average of 3 to 5 years to complete a property exchange using the ring exchange algorithm. For those advertising from 2025 onwards, an investment of around €400 should enable them to exchange their current property for their desired property while saving several thousand euros in ancillary acquisition costs.

As the number of users and exchange profiles increases, the required time to achieve the desired exchange will decrease. I estimate that within ten years, we will generate five million exchange profiles in the residential real estate sector in Germany alone, two million in the sales sector, and three million in the rental sector.

If 2.5 million exchange offers are published, this would be ten times the number of listings compared to the market leader, Immobilienscout. Consequently, the time from posting an exchange offer to completing the ring exchange could decrease from an average of four years to approximately one year. With this reduction in time, we can adjust the price for using the platform upwards, to between €150 and €400 per year.

This anticipated price surge is driven by several factors:

Patent and Technological Advantage:

The acquisition of the patent for our ring exchange algorithm solidifies our technological advantage, justifying higher prices due to the unique value and efficiency our platform offers.

Increased Demand and User Growth:

As our user base grows and more exchange profiles are created, the demand for advertising space will increase. This heightened demand will naturally drive up prices.

Efficiency and Time Reduction:

The reduction in the average time required to complete a property exchange, from four years to one year, will enhance the value proposition of our platform. Users will be willing to pay more for quicker and more efficient transactions.

Enhanced Services and Quality:

By doubling our prices, we can invest in better services and attract top talent, ensuring high-quality support and innovation. This investment in quality will further justify the higher prices.

Market Position and Scale:

Achieving a market scale ten times that of current leaders like Immobilienscout will position us as a dominant player in the real estate market. This dominant position will enable us to command higher prices for our services.

Overall, these factors combined will drive the projected 300% price surge for individual advertisements over the next decade, reflecting the enhanced value, efficiency, and market position of our platform.

P: I have set limits of €5,000 for ITC and €100,000 for XCC per day and per wallet. These limits were established to prevent one or a few large investors from purchasing all the lower-priced tranches at the beginning or jeopardizing the overall concept. Essentially, no user who wants to utilize the platform needs more than €5,000 to publish exchange profiles. Within this range, investors can purchase coins as speculative assets, but at least with a restriction.

I want to emphasize that ITC and XCC were never intended by me to be speculative assets or cryptocurrencies in the conventional sense. They are designed to serve a broad user base and investors for our future investment coins. Implementing an effective real estate exchange market requires at least a six- to seven-figure, preferably even an international eight- to ten-figure number of participants.

The significance of these daily limits lies in several key factors:

Preventing Market Manipulation:

By limiting daily purchases to €5,000 per wallet for ITC, we ensure that the market remains fair and accessible, preventing a small number of large investors from monopolizing the initial coin supply.

Encouraging Broad Participation:

These limits help foster a diverse investor base, ensuring that the opportunity to invest is available to a wide range of individuals rather than being dominated by a few wealthy entities. This broad participation is crucial for the success of our platform.

Maintaining Market Stability:

The daily limits help mitigate extreme volatility and speculation. By capping the amount one can purchase daily, we can maintain a more stable and predictable market environment, which is beneficial for all participants.

Aligning with Platform Usage Needs:

Users who wish to utilize the platform for publishing exchange profiles do not need more than €5,000, aligning the investment limits with practical usage requirements. This ensures that the tokens are used for their intended purpose rather than purely for speculation.

Supporting Long-term Growth:

By encouraging a wide base of users and preventing early monopolization, we lay the groundwork for sustainable, long-term growth. A large and diverse user base is essential for developing a robust real estate exchange market.

In conclusion, the exchange token limits are designed to ensure fairness, stability, and broad participation, supporting the long-term success and integrity of our platform.

P: IT-Coins are used to reward users for their contributions to the ecosystem, particularly during the early stages. For example, users receive IT-Coins for creating rental exchange profiles, especially if these profiles are attractive and complete, including floor plans, images, and virtual tours.

Additionally, we may offer rewards for utilizing our cross-selling approaches. Users who come from other sectors such as utilities like electricity, gas, telecommunications, insurance, investments, financing, and new construction may receive incentives in the form of vouchers or IT-Coins to encourage them to engage with our platform.

By rewarding these community activities, we aim to foster a vibrant and active user base that contributes high-quality content and expands our ecosystem, ultimately enhancing the overall user experience and value of the platform.

P: The platform manages transaction costs or the burning of tokens based on the membership level and holding period of the trading parties. This system ensures fairness and rewards long-term participation.

Users with higher membership levels, such as Superagency and Agency, and those who hold tokens for longer periods benefit from lower burning rates and transaction costs. For example, Superagency accounts holding more than 10,000 ITC for over a year face a 0.25% burning rate or €1.00 per ITC. In contrast, accounts holding fewer than 100 ITC for less than six months face a 100% burning rate or €5.00 per ITC. Similarly, XCC token holders experience varying rates, with Superagencies holding more than 10,000 XCC for over a year having a 0.25% burning rate or €100 per XCC and 100% burning rate or €500 for XCC for accounts holding fewer than 100 XCC.

This tiered approach incentivizes users to engage more deeply with the platform and maintain their holdings over longer periods, promoting stability and trust within the ecosystem. The structure ensures that those who contribute most significantly to the platform's health and growth are rewarded with lower costs, enhancing the overall value and efficiency of transactions.

P: The Ring Exchange Algorithm significantly enhances the property exchange process by allowing multiple parties to participate in a simultaneous property swap. This creates a larger pool of potential matches and increases the chances of finding suitable properties for all involved parties. The algorithm efficiently identifies and links compatible exchange offers, facilitating seamless transactions that might otherwise be impossible in a traditional one-to-one exchange scenario. This innovative approach simplifies the property exchange process, making it faster, more efficient, and accessible to a broader audience.

P: Our platform integrates several technological advancements to support property exchanges, including:

Blockchain Technology: We use blockchain to tokenize properties, ensuring secure, transparent, and immutable transactions. This technology also supports the creation and trading of property-backed cryptocurrencies.

Smart Contracts: Smart contracts automate the execution of agreements, reducing the need for intermediaries and ensuring that all parties fulfill their obligations in the property exchange process.

Artificial Intelligence (AI): AI algorithms help match exchange offers more efficiently by analyzing user preferences and property characteristics to find the best possible matches.

Virtual Reality (VR): VR technology allows users to take virtual tours of properties, providing a realistic and immersive viewing experience without the need for physical visits.

These advancements enhance the efficiency, security, and user experience of our platform, making property exchanges more accessible and streamlined.

P: Our platform provides several options for retirees looking to downsize or liquidate their properties:

Immediate Liquidity: Retirees can obtain immediate liquidity ranging from €20,000 to €2,000,000 by registering a lien on their current property.

Property Pension: We offer a property pension of €300 to more than €3,000 for several months to many years, providing retirees with a steady income stream.

Exchange for Suitable Property: Retirees can exchange their current property for an age-appropriate home and secure a place in a senior center. This ensures they have a suitable living environment that meets their needs.

By offering these services, we aim to provide financial flexibility and peace of mind to retirees, helping them transition smoothly into their desired living arrangements.

P: The tokenization of real estate on our platform offers several benefits to the ecosystem:

Increased Liquidity: Tokenizing real estate assets transforms them into tradable digital tokens, enhancing liquidity and enabling fractional ownership. This makes it easier for investors to buy, sell, and trade property assets.

Lower Entry Barriers: By allowing fractional ownership, we reduce the financial barriers to investing in real estate. This opens up the market to a broader range of investors, including those with smaller capital.

Enhanced Transparency and Security: Blockchain technology ensures that all transactions are secure, transparent, and immutable. This builds trust among users and reduces the risk of fraud.

Diversification Opportunities: Investors can diversify their portfolios by holding tokens from various properties, spreading risk and potentially increasing returns.

Integration with Broader Ecosystem: Tokenized assets can be integrated with other digital assets and cryptocurrencies, creating a versatile and dynamic investment environment.

Overall, tokenization democratizes real estate investment, enhances market efficiency, and fosters a robust and inclusive ecosystem.