What happens to the money we raise after the NYCREC STO?

Nov 26, 2018 · 3 min read

The early days of a Security Token Offering (STO) are exhilarating ones filled with high energy, high hopes, and lots of excitement.

But once the dust has settled the question remains — what happens to the money raised once an STO is over?

At New York City Real Estate Coin (NYCREC) total transparency is not just some vague promise but rather the bedrock on which we’ve built our STO.

All NYCREC token holders will have access to quarterly and yearly reports on earnings, occupancy, acquisitions, and dispositions. Our token holders are the lifeblood of NYCREC, so from acquisition to liquidation, they will be informed every step of the way.

But total transparency doesn’t just start after the STO — it starts now with a complete breakdown of our token and raise allocation.

Token Allocation

The total number of NYCREC tokens available, or max supply of tokens, is 1,750,000,000.

Like any well-structured STO with long-term plans for their ecosystem, we plan to hold back 30% of this number for a total of 525,000,000 tokens in our reserve. This will support our business activities and help us manage healthy token metrics now and into the future.

5% of tokens, or 87,500,000 tokens, will be allocated to our treasury with another 5% allocated to our team and founders.

This conservative and forward-thinking token economy leaves more than half of tokens left for the most important part of our STO — our token holders.

In our presale and public sale, 60% or 1,050,000,000 of our tokens will be available for sale, making our STO as accessible and lucrative as possible for investors around the globe.

Raise Allocation

Our goal is to raise $100 million USD in the private sale, preesale, and the public sale. The STO won’t be over until well into 2019.

And nearly the entirety of our target — 90–95% of the money raised — will go toward the acquisition of high-quality, high-yield, income-producing New York City real estate properties. Just 5–10% of funds being allocated for administrative, operations, and legal costs.

Finally, to even further differentiate ourselves from a REIT, we are not going to charge a 2% management fee, which is very typical of real estate portfolio managers and funds. That means more profits in the form of ETH airdrops to NYCREC token holders.

NYCREC STO in 7 steps

The pathway of money invested and raised both during and after our STO can also be broken down into these seven simple steps:

  1. A participant sends us 10 ETH
  2. We give them the corresponding amount of tokens
  3. We sell ETH over the counter (OTC) for cash
  4. Our team purchases an attractive New York City property
  5. We generate cash flows from the property
  6. We buy ETH OTC with the cash allocated for airdrop
  7. The ETH is airdropped to the addresses holding the tokens

And most importantly, our token holders will remain informed, educated, and up to date on our actions during every stage of the process.

Want to learn even more about our STO? Read our whitepaper and join our Telegram group to be a part of our active and helpful 24/7 community.

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New York City Real Estate Coin is a Reg-S security token offering (STO) that offers token holders interest in a portfolio of properties via dividend airdrops.

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