BitCar – Decentralizing Exotic Car Ownership

BitCar Overview

BitCar provides the world’s first decentralized platform that facilitates peer-to-peer (P2P) trading and fractional ownership of exotic and luxury cars. The BitCar platform provides users a selection of luxury cars that can be owned and traded fractionally through the acquisition of BITCAR utility tokens. Once a user has purchased BITCAR tokens, they can exchange these for fractional interests in supercars available on the BitCar platform, represented by CAR tokens.

CAR tokens are digital asset tokens that represent fractional ownership of an exotic car, linking the value of the CAR token to the price of the real asset. Exotic cars acquired by BitCar’s third-party agents and owned by its token holders are held in showrooms for a minimum of 5 years before holders vote to initiate a sale of the asset. In the future, the token holders can receive their financial proportion of the sale price through the ownership of their CAR tokens, when the car is sold.

Ownership of rare and exotic cars has always been restricted to the wealthy, so for crypto and car enthusiasts alike BitCar provides an exciting opportunity to not only fractionally own a #Lambo now, but in the future will allow them to enjoy a portion of the sale proceeds.

 

BitCar Platform Value Proposition

A new car depreciates and loses value almost immediately after it has been purchased and driven out of a dealership. This car will then typically lose somewhere between 15% and 20% of its value each year. Luxury cars such as collectable Porsches and Lamborghinis have generally appreciated in value over the past decade and in most cases, these cars have outperformed the stock market and other high performing asset classes like property and gold as reported by the Financial Times. BitCar provides recent examples of exotic cars that have appreciated in value over time as an indication of the strong returns for the asset class. An example taken from their whitepaper details how the price of a concourse condition 2003 Ferrari Enzo increased by over 200% from $1.3M to $3M over a 5 year period according to the Hagerty Market Index.

 

BitCar Ecosystem

Within the BitCar ecosystem users are required to hold BITCAR tokens, the primary level token. The BITCAR utility token is ERC20 compliant and its use is integral throughout the platform as it is utilized for functions such as platform access, fees, voting, priority and CAR token payments. The secondary CAR ERC20 tokens provides a dual token structure within the ecosystem. These tokens are created once the exotic car is placed on the platform for fractionalization and sale. There will always be a finite number of CAR tokens created per exotic car and sold. The decentralized BitCar platform architecture diagram and participant descriptions can be found below:

 

  • Platform Manager: Transmits messages ensuring users have the necessary access. Operations consist of Know Your Customer (KYC) and platform authentication.
  • Management Controller: Responsible for platform administration operations performed by Agents and Managers. Operations consist of asset issuance, management, and tokenization.
  • Assets Manager: Responsible for the issuance, transfer, and update of all assets.
  • BITCAR token: Main token of the platform.
  • CAR Token: Secondary token of the platform and represents a physical exotic car. For example, each CAR token will have its own token name such as LAMBO1VEN to represent the first Lamborghini Veneno Roadster on the platform.
  • Platform Users: Users of the platform. BITCAR acts as the utility token giving users access to the platform.
  • Agents: Manages onboarding of new exotic vehicles onto the platform, the tokenization, administration, and maintenance program of the cars.

 

Exotic Cars

Exotics cars are identified throughout the BitCar whitepaper as “Hyper, Super and top end Classic cars”. BitCar’s aim is to target vehicles that are low in build and of the highest quality, but also proven to have had strong performances over the years. Valuations are conducted on an individual car basis and will change over time to adapt to changing market conditions, ensuring the best appreciating assets are selected for the platform by the Agents. The research and reasoning behind the selection of specific cars will be made transparent to the users of the platform to inform them of the considerations that had taken place before they exchange their BITCAR tokens in specific vehicles.

BitCar agents will purchase and hold exotic and luxury vehicles for a minimum of 5 and a maximum of 15 years. As the BitCar community acquires more vehicles, it will be removing these cars from circulation for that time, which should generate favourable vehicle pricing when it comes to the sale. CAR token holders act similar to shareholders as they can participate in decisions affecting the cars they hold an interest in such as dates of liquidation. In the future, after the cars are sold, the proceeds can be distributed to the holders of the relevant tokens.

CAR Token Fractionalizing Example

The CAR token provides the tokenization of the exotic car and represents a user’s fractional ownership. The name of the CAR token changes depending on the car it represents. Returning to the previous example where LAMBO1VEN represents a Lamborghini Veneno Roadster in the ecosystem, if there are 1,000,000 CAR tokens called LAMBO1VEN token, users will need to purchase these CAR tokens using BITCAR tokens. If a user purchases 100,000 LAMBO1VEN tokens, then they will own 10% of the Lamborghini Veneno Roadster, and in the future when it will be sold, they could receive 10% of its sale price if they do not modify their interest over the holding period. Users are given the freedom to select any exotic cars available on the platform and can even purchase multiple CAR tokens across multiple cars.

 

BitCar ICO Team and Roadmap

The BitCar company was formed in 2015 and has been active in the development of the project since its conception. During this time the team focused on producing a prototype P2P trading platform, undertaking key research, logistics and obtaining legal rulings, including that from FINMA in Switzerland.

This is reflected in the strong and varied team that has a specialty and diversity across wide-ranging areas of focus. From blockchain experts to serial entrepreneurs and a national formula car champion to name a few. The BitCar team is impressive and includes members from Ledger Assets, a leading blockchain company in Australia that has delivered many successful blockchain companies. The team has experience of executing on blockchain projects globally and hitting their expected timelines to fruition.

The below BitCar roadmap highlights the company’s upcoming milestones to deploy the BitCar platform and sell their first exotic car.

Q1 2018: Integration of BITCAR token to the BitCar platform

Q2 2018: BitCar fully decentralized autonomous platform

Q3 2018: On-boarding of exotic cars and platform live

Q2 2023: First exotic car sold

 

BitCar Token Generation Event (TGE)

BitCar completed a presale with private investors earlier this year and raised SGD $6.5M during this process. The BitCar TGE started on Wednesday 31 January 2018 and will last for a total of 8 weeks (2 weeks per tranche) or until the sale is sold out, so there is still time to participate. Many bonus structures are offered to entice investors to contribute early. The sale recently sold out early in its first bonus stage. Below details the specifics of the tranche bonus and TGE specifics.

 

Token Name: BITCAR

Blockchain Platform: Ethereum (ERC20 Standard)

Tokens: 175M BITCAR tokens

Price: USD 10 cents per BITCAR token

TGE Maximum: Approximately USD $22M

Token Supply: 500M BITCAR tokens

TGE Supply: 251.5M BITCAR tokens (includes bounty of 1.5M)

TGE Duration: From 31 January 2018 for 8 weeks in total, across 4 tranches (unless sold out earlier)

 

BitCar Strengths

Benefits to CAR token holders can be found below:

  • Removes Barrier to Entry: By providing a decentralized platform that allows users to purchase an interest in exotic cars it removes existing barriers to entry so anyone can fractionally participate in the exotics cars market, without having to spend the full cost of the car.
  • P2P Trading: Putting these exotic cars on the blockchain allows for quick and frictionless P2P trading without dispute over title rights.
  • Appreciating Asset Class: Historically the value of luxury and exotic cars have outperformed the stock market, property, and gold, making them an appealing wealth creation vehicle.
  • Price Protection: CAR tokens are backed by a tangible asset and can be seen as a hedge against the volatile crypto market.
  • Ownership Entitlements: Able to vote on decisions affecting the exotic car users hold tokens for, such as sell-dates.
  • No Ownership Responsibilities: No need to coordinate the upkeep of the exotic car over the time period.
  • Beyond Exotic Cars: Widespread adoption of BITCAR has the potential to represent a new ownership model for the automobile industry in future. BITCAR tokens are already expected to be accepted by MoonLambos as an altcoin payment method to purchase supercars.

 

BitCar Weaknesses

Limitation to CAR token holders can be found below:

  • Depreciation: The exotic car may depreciate due to an unforeseen circumstance such as an economic crisis. Though Agents are employed to mitigate this risk by carefully selecting the best exotics cars to utilize on the Platform. CAR token holders can also vote on the cars sell-date that works best in their favour or P2P trade their interest in the car prior to this.  
  • Drive Car: The exotic cars will be open for display in showrooms, but token holders will not be able to drive the cars they have CAR tokens for themselves. BitCar aim to bring tangible experience events to the users of the platform and are also currently exploring VR opportunities in future.
  • Long HODL: If BITCAR investors expect to see Moon returns instantly the investment timeframe may not appeal. BITCAR provides a great long term alternative and adds diversity to an existing portfolio.

 

CryptoLingo Verdict: Opportunity

In an ever-changing cryptocurrency landscape CryptoLingo aims to find new and exciting projects of value. The BitCar project represents a fascinating opportunity to diversify your crypto portfolio with tokens backed by real assets specifically created for long term returns. The project provides its holders with tokenized assets that necessitate the need for investors to retain their tokens and ultimately preserve value linked to the underlying asset. This mechanism also provides a hedge to the volatility typically experienced in the cryptocurrency markets.

Through BitCar’s unique and innovative way to partake in fractional exotic car ownership, token holders can benefit from future profits without having to spend the large amounts required to purchase these luxury cars. The typical responsibilities associated with car ownership such as registration, servicing and insurance is abstracted away from CAR token holders. Investors benefit from the rise in the value of the asset following its eventual sale which is determined at a later point in time by its owners. BitCar also aim to provide additional services and increase BitCar currency utilization across the industry. By decentralizing luxury car ownership so that it is no longer just accessible for the wealthy but now also available for the masses to participate will disrupt the automobile industry for the better. So the next time you hear the words “When Lambo?”, remember with BitCar the answer is now. 

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  1. lovely write-up of a game changing blockchain application. the article explains the vision and sequence in a structured format!! Kudos and looking forward to more reads!!

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