3. Overview of the Project’s Goals and Objectives
FraXn is positioned as a pioneer in the RWA space in the United Arab Emirates (UAE) and later expanding globally.
3. The project aims to address the limitations of the traditional real estate market through the following goals and objectives:
3.1 Unique Value Proposition
FraXn's Solution: Blockchain-Powered RWA Trading
FraXn leverages blockchain technology to address the challenges of the traditional real estate market, creating a more efficient, transparent, and accessible investment landscape. Here’s how:
Fractional Ownership: Blockchain technology allows for the fractionalization of assets, enabling investors to buy smaller portions of real estate portfolios. This reduces the capital required to enter the market, making it accessible to a broader range of investors.
Enhanced Transparency: All transactions on the FraXn platform are recorded on a secure, immutable blockchain ledger. This provides complete transparency for investors, who can track ownership, valuation, and performance data in real-time.
Increased Liquidity: FraXn facilitates faster and more efficient trading of REIT fractions. This increased liquidity allows investors to easily buy and sell their holdings, responding quickly to market opportunities and changes.
Reduced Costs: By eliminating the need for traditional intermediaries and using smart contracts to automate processes, FraXn reduces transaction costs and complexities. This leads to a more streamlined and cost-effective investment process.
3.2 Benefits for Investors
Accessibility: FraXn’s platform lowers the investment threshold, allowing more individuals to participate in the real estate market. Investors can start with smaller amounts of capital and gradually build their portfolios.
Transparency: With all data recorded on a blockchain, investors gain greater confidence through secure and transparent information. This transparency ensures that investors have access to accurate and up-to-date information about their assets.
Liquidity: The platform enables faster and easier buying and selling of RWAs, improving liquidity. Investors can quickly adjust their portfolios to align with their investment strategies and market conditions.
Reduced Costs: By removing intermediaries and automating transactions, FraXn provides a more efficient system with lower fees. This enhances the overall return on investment for participants.
4. Global Real Estate Growth Projections
4.1. According to HSBC's Global Real Estate Study, the total value of global real estate was over $228 trillion in 2016, with an exponential growth rate of 5% per year. North America leads in global real estate investment, followed by the EMEA and APAC regions.
Cross-border investment is becoming increasingly popular in these areas. In 2016, APAC invested $20 billion in EMEA and $33 billion in North America. North America, in turn, invested $16 billion in APAC and $40 billion in EMEA. EMEA invested $4 billion in APAC and $18 billion in North America. This indicates a strong global demand for EMEA real estate opportunities.
4.2 Real estate is a rapidly expanding sector, and FraXn is set to revolutionize it. By fractionalizing real-world properties into NFTs, FraXn will enhance efficiency, boost security, and lower investment costs.
Historically, real estate has consistently been one of the best-performing asset classes. As the world's largest asset class, real estate investments offer greater benefits compared to bonds, mutual funds, or stocks. Investing in physical properties and real estate-based platforms provides predictable cash flow and the opportunity to earn passive income, along with significant tax advantages and potential for high value appreciation.
Despite market fluctuations, real estate typically appreciates faster than inflation and provides stable cash flow through rental income.
FraXn aims to modernize the real estate market by enabling fractional ownership, allowing anyone to buy, sell, and invest in properties with an entry point as low as $50.
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