Free Crowdfunding Tokens With Real Money Returns

CoAssets Tokens

18 Feb Free Crowdfunding Tokens With Real Money Returns

Crowdfunding is heating up in Singapore with more and more projects lining up for investors to choose from. Given that the property and stock markets are performing badly, some investors may be interested to turn to alternative investments such as crowdfunding.

That said, crowdfunding has yet to reach the early majority.

This is understandable as crowdfunding has not been regulated by the Monetary Authority of Singapore (MAS) (yet), and most investors tend to be cautious and prefer to sit out at the moment.

Also, investors may not comprehend and accurately assess the credit risks that they might be exposed to. Would their portfolio of crowdfunding projects be able to withstand the default rate and edge out a positive return?

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Thinking about these questions is certain enough to tire the potential investor, and the easiest thing is to do nothing.

But what if you can try crowdfunding without risking your money?

CoAssets launched the CoAssets Tokens (CAT) project in recent weeks and you can claim up to 1,000 CAT tokens to invest in 3 simulated crowdfunding projects.

Before you dismiss it as just a game, there is actually real money returns!

Here is the screen shots of my potential interest collection:

CoAssets Funded Projects

It isn’t a lot of money, but it allowed me to get a feel of crowdfunding without any capital from my side. And the interest of S$10 is still good lunch money :)

How Did I Choose the Projects to Fund

CoAssets has created 3 fictitious projects for this purpose; a Fast Moving Consumer Goods (FMCG) company, a Food & Beverage (F&B) company and a real estate developer; each looking for a one-month loan with 12% interest annualised.

CoAssets CAT Projects

I have chosen to fund the FMCG and F&B projects and here were my guiding principles:

Diversification – Think of yourself as an insurance company. You do not know which client will pass away early. But you know someone would. Hence, you would want to get as many clients as possible and charge an appropriate premium to afford the payouts when a few of them die. Similarly, some of the loans would default but it is difficult to know with certainty in advance. The safer approach is to invest a little bit in many projects.

I would choose to invest in all 3 projects but I decided to drop the property project, and the next principle explains.

Cash Flow – The loan period in this simulation is short, about 1 month. I would assume the companies need working capital in the short term, to tide them over before the business generates the cash flow. This means that I should only look at companies which can collect most of the cash in the short term. FMCG and F&B are two businesses that fall into this category, while the property developer is unlikely to complete the project or a milestone within a month (unless specifically stated so). Hence, the chances of generating the cash flow within a month would be difficult for the property developer.

With these two principles, I have narrowed the investments into FMCG and F&B.

Head on to CoAssets now to claim the free tokens. You have about 5 days left.



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9 Comments
  • Ong Chew Peng
    Posted at 13:04h, 18 February Reply

    Hi Alvin,

    How and when we can get back our capital?

    OCP

    • Alvin Chow
      Posted at 15:38h, 18 February Reply

      If you are referring to this simulation, you are not getting any capital, only interest payment of S$10.

      If you are referring to use real money to fund projects, it depends on the terms and conditions for each of them.

      • Ong Chew Peng
        Posted at 15:31h, 21 February Reply

        Thank you!

  • Lim
    Posted at 22:04h, 18 February Reply

    Hi Alvin, how are they going to pay the $10 interest to us?

    • Alvin Chow
      Posted at 14:06h, 19 February Reply

      It was mentioned in the website that:

      “Please note though, that the returns will be in Singapore Dollars (SGD) and will only be transferable to Singapore bank or issued by cheque that is only bankable in Singapore bank.”

  • Lim
    Posted at 20:21h, 19 February Reply

    Oh thanks! So we have to update our address or our bank account in the system?

    • Alvin Chow
      Posted at 12:58h, 22 February Reply

      Not sure about that. Will know more once I have claimed it :)

  • TK
    Posted at 23:56h, 22 February Reply

    I tried and copied the same as you, let’s see in one months time.
    If it is true, that means every month I will get 1% for a year?

    • Alvin Chow
      Posted at 08:24h, 23 February Reply

      You will receive 1% for a month, not every month. The loan duration is only a month. Do not get misled by “annualised 12%”.

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