TOKENIZATION OF REAL BUSINESS USING PROPERTY ASSETS: CASE STUDY AGROGLORYTIME

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This case study is addressed to those building their own real-world tokenization business model, as well as AGTI token adopters interested in exploring the value of such a purchase.

You can find all additional information on the AgroGloryTime website, and here we will try to explain the essence of our original method and convince the reader of its perspective, illustrating it with real examples of our business.

Our main priority for attracting financial resources has always been direct investment. We do not need intermediaries such as banks, which accumulate huge funds of individuals at low interest rates and, using various credit and collateral mechanisms, place the borrower in deep dependence associated with the risk of losing control over the business.

The emergence of crypto-investment mechanisms made it possible to easily attract funds from all over the world. However, for a project to be successful, aspects of safety, legality and profitability are important. Today, AgroGloryTime is the pioneer in the market to offer the right tokenization model that satisfies the above conditions.

Here we do not delve into the security and legitimacy of the method - all this is described on our website. International lawyers are preparing authorization documents for the Securities and Exchange Commission - SEC USA (which will increase the attractiveness of AGTI to the largest crypto market in the world). However, having the opinion of our lawyers and project consultants at our disposal, we are sure that they will not have any significant comments.

So, let's see exactly how we created an attractive return on investment for an investor in our AGTI token, with a rationale and vivid examples.

Key business goals

The financial return from growing vegetables is very high, if you work with plants professionally and intensively, literally day and night. The AgroGloryTime team strictly adheres to the high standards of the production process.

Once we set about tokenization, we set out to develop a model that meets the following requirements:

  1. Investments and capitalization of the company take place gradually, through the consolidation of existing projects and the development of new projects, strictly adhering to the principles of ROI and resistance to various risk factors.
  2. The earlier the investor purchases the token, the more profitable the investment is for him.
  3. Even though the token is bought late or very late (i.e. at a high or very high price), the investment is still profitable (from 10% APY) and this profit grows over time.

Currently, the greenhouse complex of the AgroGloryTime corporation occupies 12 acres (5 acres of protected soil and complete ecological infrastructure). The amount of investments is about 2 million dollars. Annual revenue was also $2 million.

But in total we have 5000 hectares. Thus, for the same level of capitalization of the entire site, about 800 million dollars is needed. And the annual earnings, accordingly, can also amount to 800 million dollars. But an agricultural enterprise with an annual profit of $800 million has capitalization with a ratio of 10-20. Given this, an investment of $800 million (which would equal 1600 token mints) would give us an enterprise worth $8-16 billion. Since our token supply will be depleted by then, we can target a $AGTI token price of at least $8, which in 266 times more than now.

The annual profit per token bought after the last mint will be $0,75*800000000: 1000000000 pcs = $0,6, that is, when buying a token for $8, the APY will be about 7,5%. For tokens purchased earlier, the profitability will be higher, and for the first buyers - significantly more.

The core of the proposed model

The AGT holding includes "Sevlushfoods" LLC (greenhouse project and trade), "AGT Castle Cellars" LLC (mushroom farms, processing and storage) and several other subsidiary companies operating on land plots of the "Zakarpatskyi Sad" company. "Zakarpatskyi Sad" is the main enterprise of the AgroGloryTime holding, which owns a strategic plot of land with an area of ​​more than 5000 acres on the border of Ukraine, Hungary and Romania for indefinite use.

As of July 2022, the assets of "Zakarpatskyi Sad" are estimated at more than 50 million dollars. The final number of shares is 160 million. Therefore, we created 1 billion $AGTI tokens, so that the nominal value of the token (initial price) is 0,05 cents and corresponds to the starting capital of the enterprise, and 100 tokens are easily converted into 000 shares. The maximum supply of the token will not increase, so the growth of the company's capitalization will push the value of the token up.

Token profit

$AGTI token holders share up to 75% of AgroGloryTime's total revenue. The company further protects its first investors by guaranteeing a minimum annual interest rate of 25% and 40% during 2023 and 2024, respectively. Profits will be paid quarterly in USDT or other tokens at the current USD exchange rate.

For example, a holder of X tokens at the beginning of the reporting quarter, while Y tokens were sold at the beginning of the reporting quarter, receives 0,75*X/Y of AGT's profit for the reporting quarter.

Productivity of the model

Let's try to show how this model works for $AGTI users who joined the project during the first mints. The table shows the distribution details for the five investors, as they each spent $0,5 million to purchase the $AGTI token, taking into account the increase in price with each mint.

Tokenizing

This investment equals $2,5 million raised by the company.

Going back to the average statistics of recent years, we can expect that the company's revenue in the third quarter was $2,2 million. During the same period, the company sold about 17,5 million $AGTI tokens. Thus, the revenue per token is calculated as ($2200000 * 75%): 17500000 = $0,094.

The table below shows the profitability of investments

The table below shows the return on investment
The table below shows the return on investment based on the numbers obtained.

Visnovok

We consider crypto-investment to be the most modern and convenient tool for direct investment attraction. There are still no correct and proven models of tokenization of real business. We present our version with the confidence that in two years our method will be widely used in the wake of our success.

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