ICO Status: Upcoming
EHAB is a blockchain based platform which decentralises the development and financing of residential property. In essence, EHAB brings building contractors and would-be homeowners together into a collaborative home-building process. Housing projects are funded using a crowd-funding model.
The problem that EHAB is trying to solve is the lack of afforable, quality homes that reflect the needs and preferences of their inhabitants. EHAB believes that the housing industry isn’t incentivised to break this century-long habit of building cheap housing devoid of real standards and real thought for how eventual residents want to live.
The EHAB platform is a series of modules that use Smart Contracts based on the blockchain. The following modules are described in their whitepaper:
This is where interested parties such as would-be homeowners, investors, and developers.
The design room is where homeowners get to share their vision for how they want their home / community to be. Developers can respond with designs which can then be reviewed and voted on.
Once a project achieves consensus in the design & planning phase it is listed on the EHAB marketplace as a project which investors can contribute towards by buying the EHAB tokens associated with the project. In their whitepaper, EHAB state that any unsold tokens will be sold “[through] their powerful network in institutional finance” so that the process keeps moving in a timely manner. One feature of this marketplace will be the display of ‘reputation’ for each contractor involved. This is intended to add a degree of ‘risk assesment’ to each project to aide investors.
Once the project is underway, the construction tracker is used by contractors to share updates on the progress of their various parts. It is also the mechanism via which payments are distributed in accordance with the Smart Contracts.
Whilst details of the wallet are limited at this time, the whitepaper indicates that investors will be able to trade or sell their EHAB tokens. This makes the proposition quite attractive as the ability to enter and exit the property market with this level of ease and flexibility is unheard of via traditional mechanisms. How this works will, from an investor perspective, will really determine the attractiveness of EHAB at ICO as it directly relates to how the token will increase in value and how easy it will be to exit when desired.
The EHAB core team comprises of Josh Graham (CEO), Filipe Moura (CTO), and Michael Williamson (CFO). The odd part in their whitepaper though is that they list a ‘Token Sale Team’ which is full of blockchain experts, but then state the need to hire key roles post-sale such as a front-end developer, a back-end developer, and blockchain developers. This very much emphasises the ‘start-up’ nature of this company and adds risk to investing in it during ICO.
The two most important features arising in the EHAB roadmap are:
The questions these points raise are fairly obvious: will the platform be any good? How long will it take to be ready? And, more importantly, what happens if the UK FCA doesn’t approve EHAB’s operating model, or places regulations upon it which fundamentally change the value proposition pitched during the ICO?
This places your investment at risk – both in terms of getting what was promised, but also in terms of time to ROI as any delays in either platform development or navigating regulatory requirements mean your tokens won’t increase in value at the rate you may have expected.
EHAB are running a multi-round ICO with pre-sale starting on 1st January 2018. Bonuses vary depending on the stage you invest starting at 50% bonus for pre-sale, reducing to 0% for late-stage ICO investment from the 1st – 31st of March.
As a rough average, if you were to invest mid-way through the ICO from the 1st of February, you’ll be paying 1 ETH in return for 330 EHBs plus a 10% bonus. With ETH costing $741 at the time of writing, this puts the value per EHB at $2.05. That’s a lot; in fact, it’s one of the highest ICO valuations we’ve ever seen!
EHAB represents one of the most ambitious and disruptive uses of blockchain and cryptocurrency seen to date. And that’s the problem. Construction and home-ownership are two of the most established and ‘traditional’ features of our existence. They are wrapped in more legislation and involve more connected parts than perhaps any other industry. To succeed, EHAB require mass adoption (or at least understanding and appreciation) of blockchain, investor confidence in cryptocurrency, and significant changes to financial regulations – and that’s just to stand a chance.
From an ICO investment perspective, too many details are too murky to enable a clear investment decision. For example, does ownership of an EHB token represent fractional ownership in the property or a share of the funding (let’s call it mortgage) offered to homebuyers? And how will the token increase in value over time? Does the value of my token increase commensurate with the value of the property? Or is the value in each token associated with the repayments being made by the homeowner? If so, once the loan has been repaid, are my tokens worth anything? And what happens when I want to sell my tokens – does this rely on someone else buying them directly or does EHAB ‘buy them back’ and list them for sale on the marketplace?
Of equal concern is the ‘start-up’ nature of EHAB at the time of their ICO sale. They have no working platform and are yet to obtain the necessary regulatory approvals to operate the model they’re proposing. They have a CEO, CTO and CFO – but no full time blockchain, front-end, and back-end developers – just a ‘Token Sale Team’ (whatever that means!)
With a token price ranging from $1.50 – $2.50 (ETH price and bonuses considered) it feels like whilst the idea is progressive, there are too many unknowns to justify such a high risk investment at this stage. Might be a good one to exercise ‘wait and see’.
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