What Is Propbase Crypto and is $PROPS Worth Investing In?

Published: March 4, 2024 | Last Updated: March 4, 2024

Markos Koemtzopoulos

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

In this post, I will walk you through what Propbase crypto is and I will score its $PROPS token across 4 dimensions: team, product, tokenomics, and momentum, to decide whether it is a good investment or not. 

What is Propbase?

Propbase is an app that makes it easy to invest in real estate. Using Propbase you will be able to buy a fraction of a property and earn rental income.

For example, you could buy $100 worth of a $200,0000 property and get paid 8% interest on it in rental income. 

Propbase’s focus is South East Asia which has a population of $650Mn and 2 times the world average in terms of crypto adoption. The company is headquartered in Thailand and managed by a team that has experience in property development. 

Why Propbase uses a blockchain

What’s special about Propbase is that it uses a blockchain.

Propobase is a decentralized application built on top of Aptos and the Interplanetary File System (IPFS).

Aptos is a high-quality blockchain built by ex-Facebok engineers with near-zero fees and instant throughput. You can find out more about Aptos here

This means that you can own tokens representing your shares of the properties and your monthly rental yield can be programmed into the tokens so that you receive them automatically in your account.

Moreover, it is easy for you to sell that token to someone else if you decide you don’t want it anymore. Propbase is developing a marketplace that will facilitate this process. 

Tokenization reduces bureaucracy for buyers and makes it easy for them to own fractions of property and diversify their portfolio. For example, I would feel way more comfortable owning $100,000 worth of real estate across 10 properties around the world rather than owning $100,000 of one property.

There are loads of companies that are tokenizing real estate assets. What caught my eye about Propbase is they issue their own currency called $PROPS.

How does  Propbase work? The 6 step process

Say you want to list a property. 

  1. You start by making a listing application. 
  2. Propbase takes care of all the regulatory stuff and due diligence and incorporates the asset in a Limited Liability company. 
  3. The documentation is audited by a third party and documents can be verified on the blockchain. 
  4. The Propbase platform then generates tokens to represent that asset. 
  5. The asset is listed on their dApp and the property auction launches. To participate in the auction users of the platform will need to buy the PROPS token from a cryptocurrency exchange.
  6. Once it reaches its funding target the transfer is complete and tokens representing ownership in the asset are distributed to investors. Rental yield accrues to investors every month. Investors can then sell their tokens on the market if they want to.

What does the $PROPS token do? 

To purchase a property in the Propbase app you need to buy the $PROPS token. PROPS has a total token supply of $1.2Bn all of which has been issued.

PROPS tokens are distributed as follows:

  • 20% sold via an IDO (initial decentralized exchange offering) in November 2023 to raise funds. This is what you can find on crypto exchanges currently
  • 35% towards a rewards pool. This funds incentives for buyers on the platform (different membership tiers receive a different amount of PROPS for buying properties) and is also used to reward stakers. The staking program entices users to lock up their PROPS token which removes liquidity from the market making the token more desirable. 
  • 10% is for the liquidity pool. If you don’t know what that is check out my description of Uniswap or take my course
  • 12% allocation to the company. 
  • 3% to the foundation. Most blockchain projects have a foundation. While blockchains are decentralized entities they usually have a representative entity to manage things in the real world in the form of a foundation. 
  • 5% for advisors. 
  • 5% for seed investors which consists of the leadership team plus an unnamed individual (who could it be?). While they have raised funds through an IDO they also plan to raise equity in 2024. 
  • 10% for Marketing. 

Roadmap

In their recent YouTube roadshow, the CEO of Propbase announced the following milestones

  • Over the next couple of months, they expect to revamp their site and launch their main product called NEXUS. This is the main interface that will allow you to invest in properties. 
  • Partnerships with large hotel chains such as Wyndham, Hilton, Ramada, Pullman, and Banyan Tree, and will be announcing two more shortly. 
  • After the launch of NEXUS, they have planned to build out the marketplace
  • They will also launch an EVM bridget which will allow you to buy the wrapped version of PROPS on the Ethereum ecosystem. 

Is Propbase ($PROP) a good investment?

I did some thorough research and have scored Propbase across the following four metrics to decide if it is a good investment or not

  • Team: 72%
  • Product: 50%
  • Tokenomics: 85%
  • Momentum: 100%

Propbase team evaluation

Team Weight Score
Are the founders legit with related experience? ✔️ Yes, Kevin Goos is the Founder and CEO. He has set up and exited 3 property marketplaces which gives me a lot of faith. Hudson Leung is a Harvard grad with experience across a range of digital ventures. I don't like the fact that not all of the team is listed on LinkedIn or the site. I would like to be able to see the experience of their developers. 65 60
Have they built Web 3 projects before? No 5 0
Did they do an exit? ✔️ Kevin has done multiple exits. 5 5
Can you find legit profiles on LinkedIn? ✔️ Yes though not for the whole team 5 3
Did they raise funds? Sounds like it's bootstrapped and then raised funds through an IDO. There is no prominent investor yet but they plan an equity raise in 2024. 10 0
How long have they been around? Started in August 2022. They launched their token in November 2023. 5 0
Public appearances through Interviews/podcasts ✔️ They do AMAs and YouTube updates. I didn't find any interviews/podcasts 5 4
Overall team score 72% 100 72

Propbase Product Assessment

Product Weight Score
Is it easy to understand what they do? ✔️ Yes 5 5
What is it? - A tokenized real estate investment marketplace -
Is there a demand for their product? We'll find out 25 0
Is there a use case? ✔️ Yes, tokenize fractional ownership of property and avoid the high fees charged by middlemen today 25 25
How big is the market? ✔️ It's big. 5 5
Is it being used? Not yet. Product doesn't exist 5 0
Github activity - That is irrelevant for this project - -
Has the product launched? No 5 0
Does it have a strategic moat? Tokenising real-world assets is all about first mover and network effects. They have gained neither yet. The low fees (1%) may attract sellers to the platform though as fees tend to be in the 2-6% range usually. 5 0
Is it focused? ✔️ Yes they are not distracted by other projects 10 10
Is the website easy to understand for non-crypto visitors? ✔️ yes one of the easiest to comprehend 5 5
Do they have a proof of concept? No 5 0
Is the UX good? Yes the site is easy to navigate and the mockups of their mobile app indicate it will have a user-friendly interface. 5 0
Is it already being done? - There are loads of real estate tokenisation projects. - -
At what stage is the product? - They are planning to launch their main consumer-facing product with new properties in Q1 2024. They have launched a crypto wallet and a staking feature. - -
How does it create value? - It makes it easy to invest in real estate and diversify holdings - -
How does the project generate revenue? - Token price appreciation and a 1% cut on sales. - -

Propbase Tokenomics

Tokenomics Weight Score
Why is the coin valuable? ✔️ It's a utility token. You need it to transact on the token. Also, supply is fixed and there are staking incentives to lock up your tokens thereby reducing liquidity. 45 45
Did they do a pre-mine? - No - -
Is supply fixed or inflationary? - Fixed at $1.2Bn - -
Was it a fair launch - Yeah - -
Circulating / total supply 33% 5 0
Token release schedule They say they have a tiered unlocking period of up to 60 months. They specify the unlocks for 15% of the supply (company and foundation) at 6 months, 1,2,3, and 4 years from the November '23 IDO. However, they do not specify the unlocks for the rewards, seed, advisors, and marketing. 10 0
Are there incentives to reduce or lock supply? ✔️ Yes, staking. 15 15
How many tokens ✔️ Only $PROPS. Be aware that there is another PROPS token floating around. Make sure you choose the right one. 5 5
How much upside is left: market cap vs industry size ✔️ $16Mn market capitalization vs trillions: we're still low 20 20
Is it listed on major exchanges - Listed on MEXC and Pancake Swap. 2 more CEXs are planned for Q1 2024. One they say will be large but it won't be Binance/Coinbase yet. - -
Overall tokenomics score 85% 100 85

Propbase Price Momentum

Momentum Weight Score
Is it trending on social media? ✔️ Yes, Lunarcrush shows high engagement 30 30
Is the market cap low compared to similar projects? ✔️ Yes very low 40 40
What is the crypto market like? ✔️ Bullish market conditions 10 10
What is the sentiment for the sector this crypto focuses on ✔️ RWAs are a key narrative 20 20
Are they marketing heavily? - Can't tell - -
Overall momentum score 100% 100 100

What I think of Propbase

Propbase is a consumer-facing product. Its website is one of the few crypto sites where you can understand what they are on about. The value proposition is pretty clear and I like that. I like it when it’s easy to grasp what someone is trying to sell. 

Is the $PROPS token necessary? 

It’s debatable. 

They could have just as well launched their platform and allowed you to buy properties using stablecoins. But by issuing a token they have another way to earn income. 

It’s somewhat similar to how governments earn revenue from their citizens by both taxing them directly through fees and indirectly through inflation and monetary policy. 

In a similar manner, the PROPS utility token powers  Propbase’s mini-economy. And as the value of this currency increases this benefits them as they hold a large portion of it. So it’s an added way for them and their users to earn revenue. 

The way I see it is that Propbase stands out from other RWA platforms in that

  • It’s simple to understand
  • It is consumer-facing. 
  • It’s close to launching a product (compared to Realio Network for example that has nothing to speak of yet)
  • It issues a native utility token

Given the above scores in my scoring methodology, I have decided to allocate a small percentage of my investment portfolio to PROPS.

Please note that this article is for informational purposes only and that none of this is financial advice. Please make sure you do your own research when it comes to deciding on whether a crypto project aligns with your investment objectives, and be aware that the cryptocurrency market is volatile. Past performance is not an indicator of future performance. 

Resources and references

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Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

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