Business Model
The business of Cryptectum is relatively straightforward: Cryptectum collects funds through Crowdfounding to buy and rent real estate in Switzerland. The rental income is distributed to investors. Due to low mortgage rates in Switzerland, 50% of the real estate is financed with mortgages. The cryptectum will be established as a stock corporation under Swiss law.
The special thing about Cryptectum is the collection of funds through Crowdfunding. The administration of the shares is to be carried out using blockchain technology. In other words, participants purchase tokens. With the help of these tokens, the profits are distributed and sale of the shares is made possible. The token name is «Tectum». The ethereum blockchain is chosen as it allows «smart contracts». The ethereum blockchain is the most common blockchain with smart contracts, so there are many possibilities to set up a «wallet». Even without downloading the complete blockchain, a wallet can be created via Metamask or MyEtherWallet which can accept any altcoin based on Ethereum.
Token distribution
85% are available via crowdfunding for $1 per tectum. This ratio stays the same for Pre-Crowdfunding and Crowdfunding.
In Pre-Crowdfunding we offer a 5% discount
Pre-Crowdfunding max. Cap: 1 250 000 Token
Crowdfunding max. Cap: 80 000 000 Token
min. Cap: 125 000 Token.




Timeline
The Smart Contract
- Crowfounding is carried out through a Multisignature Wallet connected to the contract. The participants pay into the wallet and receive a corresponding number of tokens.
The administrators (Cryptectum AG) can submit proposals for voting to the participants. On the one hand, real estate can be proposed for purchase, on the other hand the increase in the number of tokens can be proposed. This may be necessary to allow Cryptectum AG to grow and increase the liquidity of the tokens.
- The participants can vote on the proposals with yes or no. However, as long as voting is on, the tokens cannot be sold after voting. This prevents multiple matching with the same token.
- Cryptectum AG purchases tokens on the market, provided these are available at reasonable prices. The purchased tokens are distributed among the participants.
- If Cryptectum is closed and all tokens have been purchased, the SmartContract will be closed.
Profits
The profit distribution will be made the following way: With the revenue, tokens are bought from the market. Hence the participants can easily sell their tokens if they wish to. Cryptectum will buy tokens to max 5% over market value. Once sufficient tokens are available, they are will be burned. If the participants agree to a capital increase, further tokens are created and offered for sale. The advantage for the token holder is increased liquidity of the token.
Of course, the token holder wants to forecast how high the return on his investment is. The graph below makes it easy to understand what the capital will be, to what extent tokens will be burned. (What capital value is burned, causing the remaining tokens to increase). The following chart shows a possible token holder profit for an investment of $ 10 million.


Participation
The SmartContract also allows the token holders to participate in Cryptectum AG. In this way it is possible to vote against suggestions (so-called "proposals"). The operators of Cryptectum propose a property for purchase and the token holders can either cancel or refuse the purchase with a token having one vote. The token holders can also vote on new issuance of tokens for capital increase. In addition to the positive influence of the «Wisdom of the Crowd» it is ensured that the people involved in Cryptectum AG do not suddenly sell their own real estate to Cryptectum AG.
Fee
Estate agent fee: The search for an optimal property and its purchase is very time-intensive. The Crytectum will receive a fee of 3.5% of the total price for each purchased property.
Administrative fees: For the administration of the real estate, the fee is 8.7% of the real estate income. The real estate success is defined by the net rental income less than a year, net of mortgage and maintenance and operating costs.
System

Rental market
A special feature of the Swiss housing market is the huge proportion of tenants. This means that the majority of the Swiss live in rented apartment or rented house. In recent years only 39% of apartments / houses are occupied by the owners. This ratio is in some cases significantly higher in other EU countries.
Conclusion
From the above, it can be easily understood that the purchase and rental of real estate in Switzerland is a lucrative and secure business. Not only the value of property is increasing with high probability, the leasing of real estate is quite easy due to high demand. The disadvantage is that the laws for the protection of tenants greatly favours them. Even a tenant who can not or does not want to pay the rent is very difficult to remove from the apartment. A sufficiently good reference of the tenant is indispensable. A collection Procedures register output provides further protection.
