Financial Risks and Mitigations

Liquidity Risk: While the project aims to provide liquidity through exchange listings, the secondary market for MEDRE tokens may be limited, potentially impacting investors’ ability to easily buy or sell their tokens.

Mitigation: To mitigate liquidity risk, MEDRE will (or research):

• Secure listings on established cryptocurrency exchanges that are actively pursuing or have achieved MiCA compliance, such as (but not limited) Binance, Bitstamp, or CoinEx. This strategy ensures investors have access to regulated and reputable trading venues.
• Engage professional market makers to provide liquidity and ensure smooth trading of MEDRE tokens on exchanges.
• Explore community incentives to encourage token holders to participate in liquidity provision and decentralized exchange activities.
• Consider establishing a dedicated secondary market for MEDRE tokens to further enhance liquidity and provide an alternative trading venue.
• Implement a controlled token release strategy with an annual cap to prevent market flooding and maintain a healthy balance between supply and demand. (read more about this in our whitepaper)

By implementing a multi-faceted liquidity strategy, MEDRE aims to provide a healthy and accessible market for its tokens, ensuring that investors can easily buy and sell their tokens and participate in the project’s growth.

Limited Liquidity Risk in Initial Years: Due to the incentives provided to early investors and the controlled token release strategy, the circulating supply of MEDRE tokens is expected to be relatively low in the initial years. This limited supply could create challenges in executing large-scale buyback programs, potentially impacting market liquidity and price stability.  

Mitigation: To address this, MEDRE will strategically assess the market conditions and the circulating supply before deciding on the most suitable approach for distributing the profit share. If open market buybacks are deemed impractical or disruptive to the token’s price stability, the project will utilize its reserve allocation to distribute the rewards to staked token holders. This flexible approach allows MEDRE to balance its commitment to profit sharing with the need to maintain a healthy and stable token economy, particularly in the early stages of the project. As the project matures and the circulating supply increases, the intention is to transition fully to open market buybacks as the primary mechanism for distributing the net profit share.

Profitability and Dividend Risk: The project’s ability to generate profits and distribute dividends is contingent on the performance of the underlying real estate assets and the overall success of MEDRE’s operations. There’s no guarantee of profitability or consistent dividend payouts.

Mitigation: To mitigate profitability and dividend risk, MEDRE will:

• Focus on acquiring high-yielding real estate assets with strong growth potential through a rigorous due diligence and selection process.
• Explore opportunities to diversify revenue streams and maximize profitability through efficient cost management and operational efficiency.
• Implement a prudent dividend policy that balances investor rewards with the need for reinvestment and growth.
• Offer a dividend incentive for the first 5 years, with higher incentives for early investors, to promote long-term staking and provide a grace period for the project to establish consistent profitability.
• Maintain transparency and provide regular updates to investors regarding the project’s financial performance and dividend payouts.

By prioritizing strategic asset acquisition, revenue diversification, cost efficiency, transparent communication, and a supportive dividend policy, MEDRE aims to generate consistent profits, distribute attractive dividends, and provide a sustainable investment opportunity for token holders.

Token Valuation Risk: The value of the MEDRE token is influenced by various factors, including market demand, MEDRE’s profitability, and the overall cryptocurrency market sentiment. The token’s value could fluctuate significantly, potentially resulting in losses for investors.

Mitigation: To mitigate token valuation risk, MEDRE will:

• Focus on building strong fundamentals and creating value through strategic asset acquisition, consistent profit generation, and unique project features.
• Maintain transparency and provide regular updates to investors on key metrics that can influence token valuation.
• Publish regular RWA valuations on the project website, providing investors with clear insights into the underlying asset values and supporting informed decision-making.
• Foster an engaged community and educate investors about the factors affecting token price.
• Implement token burning mechanisms to reduce circulating supply and potentially increase token value.
• Engage professional market makers to provide liquidity and stabilize the token’s price on exchanges.

By combining strong fundamentals, transparent communication, community engagement, and strategic token management, MEDRE aims to support a healthy token valuation and provide a stable and attractive investment opportunity for token holders.