LABS Group Fundamental Analysis

One of the many physiological needs of a man is a roof over his and his family’s heads. That is to say, a place to call home where one feels safe, cherished, and protected. Of course, in the modern world, an economic value has become attached to it also. This has come to be known as Real Estate. It refers to buying and selling of immovable property or the value attached to a piece of land along with any natural or man-made appendages attached to it. Consequently, the price of property may fluctuate based upon nearby landmarks such as rivers, trees, oceans, etc. As in today's age, economy and finance are becoming increasingly digitized and cryptocurrency is fast replacing conventional money, the real estate sector has also been taken into the loop. Everything nowadays is connected to technology. Specifically, blockchain technology is preferred because of its safety, security, and reliability. The real estate market has a huge economic value attached to it also. According to an economic report by HSBC, it was worth around $228 trillion up to 2016. The largest shareholder in real estate investment by region is North America, followed by the Asia Pacific and Eastern Mediterranean regions. The figure of $228 trillion is not static but rather growing at a rate of 5% per annum. Investment in this market has traditionally been held by several big and influential institutions, however, crowdfunding increased the reach of institutional as well as individual investors to a wide range of assets. 

With the advent of digitized assets, blockchain and cryptocurrency, the crowdfunding market has been somewhat disrupted. While it is true that the majority of investors are still operating on paper money. The increased acceptance of crypto as legal tender in the future by both banks and governments around the world has the potential to further revolutionize the real estate crowdfunding market by increasing accessibility for all investors without discrimination while simultaneously increasing the volume of investment. The only real hurdle remains streamlining of cryptocurrency trading to comply with governmental rules and regulations. 

What is LABS Group: 

LABS group is a blockchain-powered, DeFi enabled platform which enables investment in the real estate sector using cryptocurrency. Since it runs on decentralized finance, LABS Group claims to put the power back into the investor’s hands without any third-party meddling. This is possible because each individual holding LABS tokens will give them autonomy without having to rely on any central organization. It claims to solve liquidity issues faced by investors in the market and bring investment into the community so more people have access to it rather than just the elite. 

LABS group plans to do this by making its platform crypto-centric and digitizing assets as it has become clear that this is the way to go in the future. LABS group plans to bring investment from “Wall Street” back to “Main Street” which is a euphemism for making real estate investment accessible to a larger audience and building an entire system to support businesses, communities, and investors. 

LABS Ecosystem: 

1.Fractionalization: 

In keeping with the view of making investment more accessible, the LABS Ecosystem has introduced the concept of fractionalization by eliminating the minimum investment barrier. In doing so, the investment products that were previously only available to high-profile buyers are now within reach of the average investor. 

2.Crowdfunding:

Since this platform is powered through blockchain, it allows for investment across the globe in fractional shares. 

3.Lending: 

LABS Group has allowed investors to collateralize lending, which has become a hallmark of this platform. Through this approach, investors can now loan more money thus being able to invest more in new projects. This further has a domino effect in terms of increased profit. 

4.Security Exchange: 

Keeping in view the investors’ security, LABS group has announced that all securities will be traded on an estate-oriented, licensed, and genuine security exchange to prevent any illegal or shady activities. This quality makes real estate assets more tradeable able which allows for greater profits than the conventional real estate market. 

LABS Tokenomics:

Decentralized Finance or DeFi has seen a massive increase in the world of finance and economics particularly in recent years. DeFi has also been employed by the management of the LABS group. It allows investors to make payments and transactions directly from their digital wallets without any central authority having access to or holding on to their funds. It gives a degree of autonomy and freedom to investors. 

The $LABS token is also the governance token for this platform. Individuals who hold these tokens enjoy the perks of democracy and fairness as they get to decide on voting rights, how the platform is run and what type of investment opportunities are available. Another benefit of having LABS tokens in one’s wallet is that it gives priority access to investments. In addition to these rewards, holding LABS tokens also make the individual liable to discounts on investments. This will also incentivize investing in prime real estate. 

LABS uses Non-Fungible Token (NFTs) to represent physical assets in digital form. The assets in question may range from commercial buildings to hotel rooms. The reason for using NFTs is that since each asset is different from the other, Non Fungible Tokens would be the best medium to tokenize them. 

Out of a total supply of 10,000,000,000 tokens, the largest share, which amounts to 50%, is allocated to the Ecosystem. 20% of the total supply is reserved for being sold off to public and private investors to raise more funds. 15% is set aside for teams and advisors.

10% of the total supply withheld by LABS group as a strategic reserve, should there be any unforeseen circumstances, this reserve can potentially be used to fund the business in that eventuality. 

Finally, the remaining 5% is relegated to various partners for ecosystem building. Current partners of LABS group include KC securities, iFortune, Universal Pacific Limited, Black Manta, and Ayana Properties limited, etc.

Conclusion: 

LABS group is certainly a very ambitious project which heavily relies on DeFi and cryptocurrency to revolutionize the crowdfunding real estate market. Its primary goal is to take real estate investment out to the common people. By decentralizing, the role of a central authority is diminished, effectively making those associated with the platform financially independent. Such platforms are becoming a necessity now, as more and more people earn better and can spend more money on a better future for their families. LABS group is making this easier for the general population by incentivizing real estate sector investment so that in some form or other we may own a piece of land or house.