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:

Preventative Measures

• Strong Fundamentals: Focus on building strong fundamentals and creating value through strategic asset acquisition, consistent profit generation, and unique project features. This includes acquiring high-quality properties with strong growth potential, generating consistent profits through efficient operations, and developing innovative features that enhance the token’s utility and attractiveness to investors.
• Token Burning: Implement token burning mechanisms to reduce circulating supply and potentially increase token value over time. This involves periodically removing a portion of MEDRE tokens from circulation, either through buybacks or other mechanisms, creating scarcity and potentially increasing the value of the remaining tokens.
• Stablecoin Reserve: Maintain a liquidity reserve of stablecoins equivalent to 10% of the total value of the underlying real estate assets. This reserve will contribute to token price stability by reducing the impact of volatility in the real estate market and potentially funding token buybacks and/or burns during market downturns. While the principal amount of the reserve will be strictly maintained, the interest accrued from it can be utilized to support the project’s operations, provide additional token buybacks, or fund other strategic initiatives.
• Incentivizing Long-Term Holding: Implement measures to incentivize long-term holding and staking of MEDRE tokens, such as staking rewards, bonus incentives, and exclusive benefits for long-term holders. This project is not a get-rich-quick scheme but a stable way to grow your portfolio and participate in the long-term growth of the Mediterranean real estate market.

Detective Measures

• Transparency and Communication: Maintain transparency and provide regular updates to investors on key metrics that can influence token valuation. This includes publishing regular financial reports, providing updates on project milestones, and communicating any material developments that could impact the token’s value.
• Community Engagement: Foster an engaged community and educate investors about the factors affecting token price. This includes providing educational resources, organizing AMAs (Ask Me Anything) with the project team, and creating online forums and chat groups where investors can discuss and learn about the project.
• Token Valuation Analysis: Regularly analyze the token’s valuation using various metrics, such as price-to-earnings ratio, price-to-book ratio, and discounted cash flow analysis, to identify potential overvaluation or undervaluation. This analysis will help MEDRE understand how the market is valuing the token and identify any potential discrepancies between the token’s price and its underlying value.

Corrective Measures

• Market Makers: Engage professional market makers to enhance liquidity and stabilize the token’s price on exchanges. Market makers are specialized firms or individuals that provide liquidity to financial markets by continuously quoting buy and sell prices for assets, including cryptocurrencies. They help ensure that there are always buyers and sellers available, reducing price volatility and making it easier for investors to trade tokens. By engaging market makers, MEDRE aims to create a more stable and liquid market for its tokens, especially in the initial stages when trading volume may be lower.
• RWA Valuations: Outside of publishing the total project’s asset list, maintain updated valuations on our website, providing investors with clear insights into the underlying asset values and supporting informed decision-making. This involves regularly updating the valuations of the real-world assets (RWAs) backing the MEDRE token, ensuring that investors have access to accurate and timely information about the project’s underlying value.
• Token Buybacks: Utilize the stablecoin reserve interest accrued to conduct token buybacks during market downturns to stabilize the token’s price and support investor confidence. This will involve using a portion of the interest earned on the stablecoin reserve to purchase MEDRE tokens from the open market, reducing circulating supply and potentially increasing the value of the remaining tokens.