With under a week to go before the end of its ICO, the people behind the BitCar project have announced they will burn any unsold tokens after the close of its public sale.
The project aims to give the masses access to a range of exotic models of car, from pumped up supercars through to vintage classic, by means of a blockchain-based fractional ownership investment business model.
That model hopes to generate profits by organising investments through its native token into the kinds of cars which have historically performed well as investment instruments in comparison with more traditional asset classes.
According to the latest Knight Frank Luxury Investment Index, classic cars have seen some recent striking auction results. A 1956 Aston Martin DBR1 for example, raced by legendary driver Stirling Moss, was the year’s top seller when it was auctioned by RM Sotheby’s for US$22.5 million.
The BitCar platform itself works on a dual token system. BITCAR tokens available in the ICO will be traded on outside exchanges when the sale is complete. They will also be required to pay for internal costs such as vehicle maintenance and storage charges.
At the same time, BITCAR will be needed to purchase “second level” CAR tokens on the platform which will be used as the digital asset token for each individual exotic car.
One CAR token will initially be valued at US$1. So, if BitCar had managed to win the bid for Sotheby’s auction of the 1956 Aston Martin, for example, its platform would have sought to create 22.5 million AstonMartinDBR1#001 tokens (CAR tokens),
Any buyer of these AstonMartinDBR1#001 tokens (CAR tokens) would then be linked to a slice of the car’s title on the blockchain.
Interested investors located in the Middle East can chat with the team at this week’s Dubai World BlockChain Forum. For those further afield, full details of the token sale can be found at the BitCar mainsale website.