Standing at almost 3,000 ft tall in the Dubai skies, the Burj Khalifa is the tallest building worldwide. Soon, if all plans go as expected, it will become the first building to own a cryptocurrency. The real estate firm in charge of the world-famous building, Emaar Group, plans to launch the Emaar community token.
Additionally, the group is planning to hold an ICO in Europe as reported on March 11 by local media. According to the published reports, Lykke, a Swiss blockchain startup, will develop the new token. Through the token, Emaar’s customers and stakeholders will gain access to the loyalty and referral system across the whole company.
According to Arabian Business, Emaar’s revenue grew by 37% in 2018 to $7 billion. The ICO will take place in Europe within a year of the internal operational launch of the platform. The company is taking regulations seriously with Lykke, the startup developing the token, report to comply with the ERC-20 standard. The digital currency will run on the Ethereum (ETH) blockchain.
Emaar did not state the amount of money it intends to raise. However, its chairman, Mohamed Alabbar, commented that the company wishes to “extend the Emaar experience,” explaining:
“We have embraced the digital world even as we continue to build the most advanced and innovative physical structures and we use both to delight and benefit our customers and stakeholders globally. The Emaar community token marks a significant leap in our digital transformation journey.”
As explained on a recent press release, Emaar Group plans to use the tokens partially for their loyalty system. They will also use them as rewards for the individuals who refer their business onwards. The primary focus is for customers to then use the acquired tokens at any of Emaar’s buildings.
The group manages and operates entertainment facilities, malls, and online shopping venues among many other properties. Their most famous properties include the Dubai Mall, the Burj Khalifa, the Dubai Fountain, and the Dubai Opera. The token marks a major leap in the company’s digital transformation journey.
Through the shift into the digital world, the coin will extend the Emaar experience to a potential user base of 1 billion internet users.
Reports reveal that the Emaar Group plans to run its digital currency for up to a year before it evolves to an initial coin offering. Scanty information was released about the ICO. However, what is already known is that only European buyers will participate in the ICO. As the world transforms, so does the global financial systems.
Since the start, cryptocurrencies have sent waves through the entire financial world. The nascent market faces many challenges but the introduction of security tokens will mostly the ‘noisy’ crypto arena. Emaar looks to join other real estate companies around the world in an attempt to shift property acquisition from solely depending on fiat money.
In connection, the Lykke CEO Richard Olsen explained that his startup has a “cutting-edge technology infrastructure” ready for mass-market use. “We are thrilled to leverage our experience and expertise to support Emaar’s mission to bring value and utility to millions of users globally,” he commented.