When you purchase a new automobile, the value of that vehicle begins to decline as soon as you drive it off the dealer's lot. Apparently, that's not the case with exotic vehicles, such as Ferrari, Lamborghini, etc., and the BitCar ICO wants to give the cryptocurrency community a way to profit. They've created a way for buyers of its coin to own a fraction of an exotic vehicle, without all of the usual responsibilities such as titling, insurance, etc., and benefit from the rise in the value of the asset. BitCar has decentralized luxury car ownership so that it's no longer just accessible for the very wealthy, and the upcoming ICO will launch sometime in 2018.
The development of the Bitcar platform and underwriting expenses will cost somewhere in the neighborhood of USD 10 million. The starutp intends to direct the proceeds from its upcoming ICO primarily across underwriting exotic vehicles and software engineering with the balance going toward legal expenses, marketing, etc.
Fractionalizing Super Cars
The way that it works is Bitcar "fractionalizes" the exotic cars on its platform into Ethereum smart contract-driven asset tokens dubbed car tokens whose name reflects the car make and model, such as the Ferrari F40 token, according to the company's blog. These fractionalized tokens can then be purchased with the Bitcar token. The blockchain, the company says, gives token holders the ability to hold or trade their fractionalized tokens.
Bitcar will purchase and hold the luxury vehicles for a number of years, after which time the cars are sold and the profits are distributed to the holders of the relevant tokens. The token holders appear to act as shareholders in that they get a say in decisions surrounding the cars, such as dates of liquidation and the location where the exotic vehicles will be displayed. Alas, token holders do not appear to gain the ability to actually drive the cars.