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Company

  • Why Liechtenstein? A regulatory blockchain-heaven?

    With 38,000 inhabitants and 160 square kilometres of ground area, Liechtenstein is one of the smallest countries in Europe. However, this small state between Switzerland and Austria aims to become a global centre for blockchain technology and companies.

    Liechtenstein stands for political stability and is a member of the European Economic Area. With Bank Frick, the country disposes over considerable of financial and blockchain know-how. Bordering on to  Eastern Switzerland, Lichtenstein is an ideal business location for CROWDLITOKEN AG to spread its services internationally.

  • How does CROWDLITOKEN AG earn money?

    The fee structure at CROWDLITOKEN is transparent and clearly defined. The following costs (without VAT) can be charged:

    • 0,75% property management fee
    • 15% performance bonus with more than 5% investment return
    • 15% performance bonus in the event of repayment at maturity of more than the nominal value of CHF 1.00 per bond

    It should be noted that these costs are never deducted directly from the investors’ assets but are included in the returns via the settlement.

    CROWDLITOKEN uses the profit for the further development of the business idea and for the improvement and optimization of the processes and the platform.

  • What know-how does CROWDLITOKEN AG need to ensure that success and continuity of its business model?

    Due to the complexity of the product, CROWDLITOKEN AG requires a diverse setup with a variety of skillsets. The team combines experts from the fields of real estate, finance, law, compliance and marketing as well as innovative lateral thinkers, technology specialists and strong, well-connected entrepreneurs. The combination of innovative, young minds and experts with many years of experience, who all bring different perspectives to the table, ensures a dynamic and highly competent team.

  • Is CROWDLITOKEN AG subject to the Money Laundering Act (AML)?

    Yes, CROWDLITOKEN AG applies strict compliance rules and only accepts investors who have been duly identified themselves in the course of the digital onboarding and later in trading on exchanges. The company applies the Know-your-Customer Guidelines (KYC) and makes sure that all requirements of the Anti-Money Laundering Regulations (AML) are fully met under applicable law.

    Any person who later purchases tokens on the secondary market but fails the full KYC/AML verification process may not exercise their rights in respect of these tokens.

  • What law is CROWDLITOKEN AG subject to?

    The company is headquartered in Triesen in the Principality of Liechtenstein. The prospectus has been approved under the supervision of the FMA (Financial Market Authority Liechtenstein).

  • What is the role of CROWDLITOKEN AG?

    Liechtenstein-based CROWDLITOKEN AG has developed a new investment concept that combines the advantages of existing direct and indirect real estate investments. The company enables digital real estate bonds to be issued via blockchain technology and buys real estate throughout Europe. Investors benefit from the participation in the net income and the increase in value of the properties.

  • Technologies

  • What are the advantages of blockchain technology? Why is this technology trendsetting?

    A blockchain is a a distributed log data and asset management structure. Compared to conventional, centrally structured databases, a blockchain offers various advantages. The following essential distinguishing features can be listed as a rough generalisation of possible advantages.

    1. DECENTRALIZED & DISTRIBUTED
      A blockchain is a decentralised data structure i.e. it is run by numerous computers which are highly distributed.. All supporting computers involved in operating this blockchain manage the same, identical database.

    2. RESILENT
      The participants of the network communicate directly with each other without a central coordination point. This way, the data structure is much more resilient without a central point of failure

    3. TRANSPARENT
      Transactions on a blockchain are visible on a pseudonym level. This however doesn’t mean, that the values of all data are visible. Data can also be stored encrypted.

    4. TIME STAMPED & IMMUTABLE
      Transactions on a blockchain are written in packages of transactions, what we call “blocks” at regular time intervals. Once entered into a block, transactions cannot be deleted or changed or rearranged in time.

    5. SECURE
      Through cryptographic encryption and the distributed structure of the blockchain, a high level of security as well as digital uniqueness can be ensured.  In simple terms, a blockchain can prevent data from being duplicated with copy-paste.

    6. AUTOMATED
      In the blockchain, transactions can be underlaid with logic in form of code. This allows transactions to be carried out automatically based on rules and logic defined in advance. This on-chain logic is often called Smart Contracts or Chain Code.

    There are various blockchain types with different characteristics of the advantages described above.

  • Where and why does CROWDLITOKEN use the blockchain technology?

    CROWDLITOKEN uses blockchain technology to replace intermediaries where possible and reasonable, specifically to replace the general ledger which otherwise would be provided by a bank.   Further, the digital bond “CROWDLITOKEN” is a blockchain-based smart contract (also called “Token”) representing the investor’s ownership rights over that specific asset. By using this technology, CROWDLITOKEN’s processes are leaner, low-cost and more efficiently.

    • CROWDLITOKEN can thus make investments available to investors as of a minimum investment of starting at 100 CHF.

    • In addition to CHF and EUR, CROWDLITOKEN accepts participation with the cryptocurrency ether

  • What is a digital Asset?

    A digital, blockchain-based asset (token) is a digital representation of a bond. It represents ownership rights over the bond and the right to the participation in profit or turnover or it can represent a repayment obligation.

  • Product

  • What costs and fees do I have to expect as an investor?

    In contrast to funds, there are no surcharges and hidden fees to be paid. The overhead costs of CROWDLITOKEN are charged to the property. However, the following costs (excluding VAT) may be charged:

    • 0.75% p.a. property management fee based on the investment value of the property.
    • 15% annual performance bonus if the net income from the property in relation to the net purchase price is more than 5%.

    When purchasing tokens, the following fees may apply. The actual fees are clearly listed for the customer before the purchase:

    • Purchase in CHF or EUR: 1%
    • Purchase in ETH: 1% for the subscription process and 1% Exchange Brokerage
    • All Subscriptions: 4 Tokens per Transaction GAS-Costs and 40 Tokens if Video Identification is required

  • What is the value of a token?

    Nominal value 1 CRT = CHF 1.00

  • What does the term of 25 years mean?

    CROWDLITOKEN is structured as a subordinated bond and has an initial term of 25 years. This is the period between the issuance of the tokens – tokens are in circulation and valid – and the last trading day, the day on which the repayment is made. There is, however, both an early redemption option and the option to postpone redemption twice by five years.

  • Who is responsible for taxing the yield?

    It is solely and exclusively the responsibility of the investor to assess the tax consequences of the ownership or transfer of CRTs – in any way whatsoever – or the possible redemption of CRTs by CROWDLITOKEN AG and to pay all taxes arising from ownership, transfer or redemption. Investors are advised to clarify the tax consequences associated with the ownership of the Tokens with their own tax advisors. However, investors will receive an electronic tax statement upon acquisition of the property and receipt of any payments from CROWDLITOKEN AG.

  • How many units/token can I place at most per property?

    The number of tokens varies from property to property and depends on the purchase price paid. Expressed as a percentage, the maximum is 55% of the value of the property. In principle, it is possible for the sole investor to fill 55% of the property with tokens.

  • What co-determination rights do I have as an investor?

    Investors can decide on the following resolutions within the scope of their co-determination rights:

    • Changes to the terms and conditions of the bond, e.g. a change to the minimum interest rate or the introduction of a new crypto currency for payment processing.
    • Sale of a property, whereby this decision is only presented to investors who have invested in the property in question.
    • Other issues which, in the opinion of CROWDLITOKEN AG, have a significant impact.
      Binding decisions are made in all cases with 50% or more of all tokens participating in the vote.

  • What is an ISIN number? Why is it needed?

    The ISIN (International Securities Identification Number) is an international bond identification number. It is a twelve-digit letter-number combination and represents an identification for bonds. The ISIN makes it easier to trade the bond on exchanges and to integrate the bond into existing systems (e.g. reporting tools, banking systems).

  • Is there a repayment guarantee?

    The investor receives his share of the value of the real estate portfolio, with a minimum repayment of CHF 0.70 per token.

  • How do I get my money back? And in which currency?

    During the term of the bond, an investor can sell the purchased tokens to another interested party (secondary market such as, if available, stock exchange or OTC market). At the end of the term, the token is repaid to the investor. The investor receives his share of the value of the real estate portfolio, with a minimum redemption of CHF 0.70 per token. The currency for the repayment can be chosen between CHF, EUR and Ether.

  • Why is the diversification of my investment important also within the ecosystem?

    Diversification means spreading risk. A real estate crisis in Switzerland doesn’t necessarily lead to a real estate crisis in Holland. Spreading the tokens over several countries helps to spread the risk and to reduce profit collapses.

  • Participation in net income: CRT-Cash or CRT-Reinvest?

    In addition to the minimum interest rate of 0.875% (year 1+2), 1.5% (year 3) or 2.1% (from year 4) p.a., the investor receives a performance-related interest that the property of his choice yields. He can choose between two different models:

    CRT-Cash: Do you prefer a regular payment of the income? Then choose CRT-Cash and get your profits paid out in EUR or CHF at the beginning of each month.

    CRT-Reinvest: Do you want to increase the capital value of your investment? Then choose CRT-Reinvest.,The share of net returns is converted into new tokens based on the last CRT issue price paid. Newly allocated tokens are automatically transferred to the wallet address of the investor. From there they can re-allocate his new tokens.

  • How is the distribution (CRT cash) of my return distributed?

    If no adjustment is made in the investor portal, CROWDLITOKEN AG pays out in the currency in which the tokens were subscribed (CHF, EUR, ether) as standard – on the 5th of each month. The investor can adjust the payout currency at any time.

  • What is the composition of the return?

    CROWDLITOKEN expects net returns for the investor of 5% to 7%.

    The return corresponds – as a percentage of the individual investment – to the rental income of the property, from which the expenses of administration, provisions, taxes and interest are deducted.

  • Where may investors not invest in CRTs (exclusions)? Why are US citizens excluded?

    Investors from countries in which our product is not approved can’t invest in our product. There can be several reasons – political and financial – why our product is not approved and available in a country.

    Investors with a US status are currently not allowed to invest in the CROWDLITOKEN product. This restriction is due to political and legal reasons.

  • In which countries may CRTs be acquired?

    The issue prospectus will be sent to selected countries of the European Union in which the public offering and subscription is permitted. Shipping to other countries outside of Europe is currently being reviewed.

  • In which currencies is the investment in Tokens permitted?

    In Swiss francs (CHF), Euros (EUR) or ether (ETH).

  • What are the advantages of a digital bond?

    A digital bond can be issued directly by CROWDLITOKEN without a bank (cost savings) and can be held by the investors themselves, again without a bank. The digital bond allows a wide range of people to benefit from the financial product. A digital financial instrument also opens up new opportunities for the investor: At CROWDLITOKEN we can combine the digital bond with the digitised income streams of real estate investments, allowing investors to participate directly.

  • How is the product structured (type)?

    CRT is a subordinated bond under the law of the Principality of Liechtenstein. The bond has a term of 25 years (with an extension option of 2x 5 years) and pays a minimum interest rate of 0.875% (year 1+2), 1.5% (year 3) or 2.1% (from year 4) p.a. (based on CHF 1.00). The bond is issued digitally in the form of a token.

  • Investment strategies

  • How can investors maximize their return or profits?

    With the CRT-Reinvest model, an increase in capital value is possible. Instead of being paid out in cash, the share of the net return is converted into new tokens based on the last CRT issue price paid and can be directly reallocated.

  • How can the investor profit from an increase in value?

    Since CRTs are backed by real estate, it is assumed that the trading value of the token reflects an increase in value of the real estate. Investors can benefit from an increase in value in three ways:

    1. Selling the tokens on a stock exchange or bilaterally to another investor (OTC market), provided they trade at or above the net market value of the portfolio.
    2. Placing the tokens on a property that is likely to be sold at a profit. The profit from the sale of the property will be distributed to the respective investors on a pro rata basis.
    3. Holding the tokens until maturity when the bond is repaid and the investors are paid their share of the realised appreciation of the portfolio

  • To what extent do I have inflation protection on real estate? And: why?

    Real estate is a tangible asset: assets that can be “touched” have a stable value and are associated with a certain protection against inflation. These assets retain their value in times of inflation (price increases). These investments are offset by nominal values such as cash. Unlike tangible assets, nominal values lose value in times of price increases, i.e. you can suddenly buy less with 100CHF.

  • To what extent will a real estate bubble affect me as an investor?

    The bond will be traded on the secondary market. The price of the bond should reflect the value of the real estate portfolio. A real estate bubble can therefore affect the price of the bond traded on the secondary market.

  • Is a total loss possible?

    CROWDLITOKEN guarantees a minimum repayment of CHF 0.70 per token. A total loss would therefore only be possible if the company were to go bankrupt. The prospectus of the bond contains several mechanisms to make this scenario highly unlikely. Such mechanisms include mandatory reserve accumulation, write-down clauses and an extension of the term by a maximum of two times five years in the event of a real estate crisis.

  • What risks does such an investment entail?

    Digital assets are the next evolutionary step in the world of financial products. CROWDLITOKEN is a digital bond issued by CROWDLITOKEN AG. The technology used for the issuance is young and the markets for trading tokens are still developing. In addition, the same risks apply as in a traditional real estate investment: the value of the properties may fall, rent losses are possible or an exceptional need for renovation arises.

  • What is meant by indirect investments?

    This refers to indirect real estate investment where, for example, one buys units in an open-ended real estate fund or shares in a real estate stock corporation. Indirect investments require only minor investments and ensure trading liquidity on public stock exchanges. However, some funds also require high minimum investment amounts and provide for blocking periods in order to solve liquidity problems in case of numerous redemptions.

    Funds and real estate companies that are managed entirely by managers do not provide for investor participation. When an investor invests in such products, he buys a flat-rate share of a portfolio.

  • What is meant by direct investments in real estate investment?

    Investors invest classically in purchases of condominiums or apartment buildings. Direct investments usually require large amounts of capital and various obstacles must be overcome: For example, financial and technical due diligence, mortgage brokerage, property management, tax planning, legal form and finally dealing with local authorities and registration in the land register.

  • What are the advantages of investing in real estate via CROWDLITOKEN AG?

    Thanks to digitalisation, CROWDLITOKEN allows investments starting at 100 CHF/EUR, investments are user-friendly, liquid and it generates a stable return in times of negative interest rates. Furthermore, the concept combines the advantages of direct and indirect real estate investments, concretely:

    Elements of direct real estate investments:

    • Individual real estate portfolio
    • Inflation protected return (5-7%)
    • No share premiums

    Elements of indirect real estate investments (e.g. real estate funds):

    • No effort to search and manage real estate
    • Tradable and bookable into a bank custody account (first digital asset project with a Swiss & Liechtenstein ISIN: LI0432942626)
    • Prospectus approved by the FMA Liechtenstein

    In addition, you profit with CROWDLITOKEN…

    • from substantially lower costs compared to investment funds due to lower fees and technological efficiency
    • from flexibility, as you can adjust real estate allocation anytime
    • from tax efficiency and elimination of the withholding tax

  • Why should I invest in real estate instead of shares?

    Due to the current strong price fluctuations, the stock market is very uncertain and returns are not guaranteed. The real estate market, on the other hand, is very stable and enables plannable income. With CROWDLITOKEN you will even receive a pro rata payout every month.

  • In what way is CROWDLITOKEN different from a real estate fund?

    CROWDLITOKEN differs from a real estate fund in the following points:

    • Individuality: In a real estate fund the fund manager decides on the portfolio, the investor however has no influence. In CROWDLITOKEN, each investor can put together his individual portfolio of properties based on his personal risk profile and adjust it at any time. He can also specify his risk profile and CROWDLITOKEN will provide the investor with a personal placement proposal.

    • Flexibility: In contrast to a real estate fund, the CROWDLITOKEN investor can choose freely between distribution and reinvestment of his monthly cash flow. The distribution currency can also be selected individually from CHF, EUR and Ether. The choice between the options can be flexibly adjusted at any time.

    • Transparency: As an investor at CROWDLITOKEN you can see what cash flow the properties generate and what costs are charged.

    • No premium: In contrast to many real estate funds, CROWDLITOKEN has a built-in mechanism that migrates the occurrence of premiums

    • Lower costs: CROWDLITOKEN investors benefit from substantially lower costs than in investment funds due to lower fees and technological efficiency.

    • No withholding tax: Due to the company domicile in Liechtenstein, no withholding tax is payable.

  • Real estate

  • When do I receive my yield distribution?

    Thirteen times a year, at a fixed date/time in accordance with the prospectus approved by the FMA. Twelve distributions are paid out with a budgeted amount per year. A special payout is made after the successful completion of the annual real estate account of the respective property.

  • What kind of real estate strategy does CROWDLITOKEN AG pursue?

    CROWDLITOKEN AG pursues a three-step strategy for the acquisition of real estate, the “Triple Europe Real Estate Strategy”. Divided into the so-called Core, Core Plus and Added Value categories. The first properties are acquired in Germany and Switzerland. The portfolio will then be extended to other European countries.

    In the first phase, CROWDLITOKEN AG mainly invests in the Core category to create stability and a constant cash flow. If higher issue proceeds are achieved, the portfolio is supplemented by the Core-Plus and Value-Added categories in order to increase income and create an attractive balance between the categories. At its peak, the portfolio is expected to include more than 100 properties, to which tokens can be allocated as follows (non-binding example): 40% Core, 40% Core-Plus and 20% Value-Added.

  • What does the Core Plus category mean?

    Core plus properties are properties in B-C locations that are almost fully let and have a solid structural assessment. Re-letting on termination is always considered to be a given. The rent level is considered stable. The rental contracts are medium-term.

  • Can I inspect the properties?

    The properties can be inspected from the outside at any time. If you wish to view the property from the inside, please contact us at realestate@crowdlitoken.com.

  • Are the properties checked by CROWDLITOKEN AG before they are bought and offered online?

    The employees in the real estate department of CROWDLITOKEN AG are trained real estate experts. Each property is thoroughly checked by the experts through a standardized process before it is purchased. In addition, there is an external appraisal by a renowned appraiser, and the financing bank checks the property. In the case of large transactions or redevelopment objects, we also prepare a constructional appraisal.

  • Do I have to decide on one property or can I invest in several properties at the same time?

    The great thing about CROWDLITOKEN is that you can put together your own individual property portfolio. Accordingly, you can easily invest in different properties at the same time and change this afterwards.

  • How is the conversion from CRT to FIAT / ETH for the distribution of returns?

    We receive the rents in the respective national currency of the property. The conversion takes place at a certain key date (fixed day and time).

  • How often do I receive property reporting?

    The investors of the respective properties receive a report in the dashboard every six months. The reporting contains the most important key figures.

  • What happens if the community rejects the sale?

    The property is not sold. The respective asset manager can only submit a new application with reasons for the sale after 18 months.  The property remains visible in the dashboard, tokens can be placed further.

  • How is a property sold?

    The responsible asset manager submits an application to the real estate commission of CROWDLITOKEN AG, stating the reason for the sale. Together they define a minimum selling price. Afterwards, the token holders of the respective property are asked via an online voting whether they want to sell the property. If this is positive, a bidding process is carried out through a real estate agent. Once the buyer has been found and the purchase price has been paid, a special distribution is made to the token holders of the property in question.

  • What principles apply to real estate acquisition/investment?

    The Board of Directors of CROWDLITOKEN AG sets out an overall real estate strategy. Operational control is the responsibility of the real estate commission of CROWDLITOKEN AG. There is an operational real estate concept which clearly defines the specifications for the acquisition. In addition, the financing bank must provide the necessary outside capital. Furthermore, we must be convinced that the properties are to be classified as value-preserving and that we are certain that the income from the letting will be sustainable in order to guarantee the returns.

  • Can I, as an investor, also be a tenant of a CROWDLITOKEN property?

    Yes, if you meet all the necessary requirements for a rental agreement, you can also live in an apartment of the property yourself or move into office or commercial space. However, you do not have the right to register owner occupation.

  • How are the properties refinanced?

    The properties have a maximum debt ratio of 60%. Depending on the property strategy, short, medium and long-term mortgages are taken out. The refinancing rates are always kept under review in order to react to changes in the market.

  • Who pays for possible repairs and renovations to the properties?

    Maintenance costs are taken into account of the budget planned and allocated for every property. They are paid directly from the property account. This factor is already included in the reported yield.

  • Who takes care of the management of the properties or manages them?

    Property management is outsourced to local property management companies located in the immediate vicinity of the property. These property managers are ideally placed to manage the properties, commission repair and maintenance work and ensure that everything is always in order. These local property managers also prepare the financial statements for the individual properties and report to the local CROWDLITOKEN team.

  • Why are only office and commercial properties offered in Switzerland?

    Switzerland has the LEX-Koller Act. Foreign persons and companies may not acquire residential property. CROWDLITOKEN is domiciled in Lichtenstein and may therefore only acquire office and commercial properties.

  • How are the properties valued?

    The properties are valued every 6 months by an independent valuation partner. Wüest Partner is currently our partner for this. The results are continuously published and updated in the dashboard. In this way, investors are always informed about the value of the real estate

  • Who buys the properties? Who is the legal owner?

    CROWDLITOKEN AG buys the properties and is listed as the owner in the local land register. The investors only own the properties virtually in the dashboard. Participation in the property’s success is based on the placement of the tokens on the property. Further details are given in the approved securities prospectus.

  • How does CROWDLITOKEN AG ensure that the properties are of “stable value”?

    All properties are checked through our standardised acquisition process. This involves intensive examination of location criteria, building condition, earnings situation, legal certainty, and possible potential for increasing returns. In addition, we have an independent building technology expert opinion drawn up for all properties above a certain size. A valuation report by Wüest Partner is carried out prior to each purchase. All relevant property documents are made available to investors in the CRT dashboard.

  • How does CROWDLITOKEN AG obtain the offered properties?

    Real estate is an asset class in high demand. Internet platforms and real estate agents help but are only intended as support for our acquisition strategy. Real estate is location-bound, so strong relationships with local people are essential. Accordingly, CROWDLITOKEN AG works with local specialists who have the necessary network and know-how. For this reason, individual country teams are established which are responsible for the acquisition and management of real estate in the defined countries.

  • What does the added value category mean?

    Added-value properties are properties with many potentials that still need to be developed. Targeted measures can be taken to improve the condition of the building, the rental income and the occupancy rate. Due to the favourable purchase price and the recognition and implementation of the potential, an above-average return can be achieved.

  • What does the Core category mean?

    Core properties are properties in central locations which are fully let and are structurally considered to be as good as new. Re-letting on termination is always considered to be a given. The rent level is assessed as stable to rising. The rental contracts are long-term. Loss of earnings is therefore considered to be low.

  • What kind of properties is CROWDLITOKEN AG looking for?

    The employees of CROWDLITOKEN AG select properties according to location, building condition and potential yield. The aim is to ensure sustainable returns and to ensure that the value of the property is maintained over the long term. For this purpose, a real estate strategy has been developed which is publicly available.

  • The investment process

  • What is the maximum amount of money I can invest?

    The maximum investment amount is CHF 20 million.

  • What is the minimum investment?

    The minimum investment amount per investor is 100 Swiss francs.

  • Why do I have to pay a fee for the KYC process?

    There is a charge for making transactions on the Ethereum blockchain and crediting the CRT token to your wallet.

  • What is the KYC process?

    The abbreviation stands for Know-your-Customer. This refers to specific guidelines during the onboarding process which must be checked to identify the interested investor (legitimacy check of new customers). CROWDLITOKEN AG applies strict compliance rules and only accepts investors who have been properly identified during the onboarding process and later during trading on crypto exchanges. Here the company also complies with the Anti-Money Laundering Regulations (AML).

  • Does the registration cost money?

    When purchasing tokens, the following fees may apply. The actual fees are clearly listed for the customer before the purchase:

    • Purchase in CHF or EUR: 1%
    • Purchase in ETH: 1% for subscription process and 1% Exchange Brokerage
    • All Subscriptions: 4 Tokens per Transaction GAS-Costs and 40 Tokens if Video Identification is required to the Issuer

  • How long does the registration process take?

    The registration process takes about 15 minutes, provided you have prepared the needed documents. Until you can make the deposit, we will check your data, which can take up to 2-3 days. The registration process in connection with the verification of your data and the deposit is split into two or three phases and cannot be completed in one go.
    The registration process for legal entities takes longer.

  • Contact us

    Your questions were not answered above or you need other information from us?
    No problem. Contact us and we will get back to you within a few hours.

    CROWDLITOKEN AG
    Austrasse 15
    9495 Triesen
    Liechtenstein

    Tel. +423 797 05 24
    (Mo. – Fr. 08.00 – 12.00 / 13.00 – 17.00)

    welcome@crowdlitoken.com

    Free Downloads

    Learn more about our company and download our free CROWDLITOKEN documents.

    • Prospectus (legal basis)
    • KIID (Key Investor Information)
    • Product description
    • Booklet
    • Factsheet