Global REIT; Business Analysis

toluene(47)

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Global REIT (Global Real Estate Investment Trust) is a decentralized platform that seeks to revolutionize the real estate industry by providing real estate investment opportunity for people and investors globally. Global REIT is created to serve the functions of the centralized REITs and also add more to the industry by eliminating the limitations of the centralized REIT.

In this article, I will be conducting a business analysis on the Global REIT project. This is to evaluate the internal and external factors which may have a positive or negative effect on the development of the project. The internal factors are strength and weakness of Global REIT, while the external factors are the opportunities and threats available to Global REIT.

Strength

The nature of cryptocurrency is very volatile and responded explosively to little changes in the market condition which is driven by demand and supply. In recent times, the whole market has been in a bloodbath (bear market) and the value of many tokens has dumped extremely that some may never return to their initial value when the market rises again. Most investors have identified the use of USDT as the best way to reserve the value of their tokens. They sell off their tokens to convert the value to USDT and then buy back when the market recovers.

With Global REIT being a platform built on the Blockchain, most investors would wonder what the fate of their money would be, if they invest in real estate asset through the Blockchain whose value can be very unpredictable.

Global REIT is aware of these issues and therefore creates their utility tokens in such a way that the value of the tokens are not pegged against the value of other financial assets on the Blockchain but pegged against the value of real estate assets. The changes in the value of the real estate assets will have a matching effect on the value of the tokens i.e. if the value of the real estate asset increases by X10 then the value of the tokens will have a corresponding increase. This can be considered as a major strength for this project over other Blockchain projects, as investors would not have to bother about the value of their investments when the market misbehaves.

Weakness

Global REIT is an innovative project with a good concept and innovation. It seeks to globalise the whole real estate industry through the Blockchain. But the weakness I see it this, is the ability to make the platform global and make it appealing and acceptable to both real estate investors and existing real estate companies globally will be very challenging, due to the fact that Blockchain is still relatively new to the world.

Opportunity

The real estate industry is an industry that have been in place for many years and has evolved from different Age. The industry is presently worth billions of dollars and it has a very large potential of increasing higher yearly. The industry is a very promising one, but it needs more innovations and efficiency. The Blockchain is popular for it ability to provide efficiency and innovation in any industry or sector. It decentralized nature makes it free from any legal or regulatory influence or bodies.

Global REIT is seeking to take the opportunity of utilizing the Blockchain to revolutionize the real estate industry. And considering the fact that REIT has not been influenced by the Blockchain technology, this is any opportunity that shouldn't be missed by any project.

Threats

The real estate industry is a very large industry with many big players in the industry. Global REIT is faced with the threat of imitation, as the industry is too large and other real estate companies might be threatened by the solution Global REIT offer to the industry. This may lead to the creation of other platforms that will offer similar services to that of Global REIT.

The good part about this is, the industry is large enough to accommodate competitors and competitor will bring more efficiency in the industry. Global REIT is also at advantage of being the pacesetter in the industry, so by the time other platforms are developed, it would have established a brand that cannot be outgunned.