Zoth: enabling fractionalized asset investments through tokenization
Brainstorming on the product and go to market strategy
Zoth allows users to invest in fractionalized yield-generating assets enabling users to avail the yield benefits of assets like commercial real estate but at a lower ticket size. The aim is to allow KYC’ed users to invest with stablecoins and fiat through the platform attracting web3 natives towards an alternative investment asset class and familiarising non-web3 natives with blockchain technology.
Zoth’s asset fractionalization is enabled through tokenization; the underlying asset is transferred to a trust and token buyers are added to the trust as beneficiaries. In this aspect, Zoth can become the legal wrapper that helps investors invest across the globe without the technical overhead.
The assets that can be tokenized and listed on Zoth are endless; Zoth could even create proxy-structured products, for example, a yield-generating real estate-based mutual fund similar to a REIT. However, the initial strategy should be to list blue chip low-risk assets with stable yield assurance to attract the first set of users.
In terms of product development, the most important thing is the UI. The user should not realize that blockchain technology is being used in the backend. A custodial wallet infrastructure should be set up that holds KYC’ed user tokens and enables them to participate in the secondary market.
Another important aspect of the user experience is enabling the user to do end-to-end asset due diligence; this will be different for each asset class but a fragmented experience leads to a loss of investor interest.
Zoth also intends on developing a secondary marketplace; this marketplace should be designed similarly to P2P on Binance. It should allow users to set prices and list the asset they would like to sell, however, token transfer overhead should lie on Zoth.
PnL and expected yield metric visualizations are key for investors to keep coming back to the platform daily and checking their portfolio; using this as an advantage, new assets can be showcased to attract more investments through the platform.
The team also plans to launch a ZOTH token. The ZOTH token should be designed to act as a tiered incentive ladder for users. For example, holding a certain amount of tokens will reduce user platform fees, or top X percentile ZOTH token holders are given exclusive visibility to newly listed assets before they are launched onto the platform. However, to get users excited about the ZOTH token, the project needs to get users excited about the platform.
To onboard the initial set of users, Zoth needs dedicated users to understand the product offering, invest and also recommend the platform to their peers.
Educational content similar to Ditto Insurance’s content should be rolled out on Linkedin. The Linkedin content should be aimed at potential users between the age of 18-30; users who are new to investing and looking for lower ticket size opportunities. The content should explain the benefits of fractionated ownership and yield generation from investing in assets like real estate. The intent is to invoke asset class curiosity within this age group and encourage them to explore the platform.
Facebook advertisements should also be a focus area for the marketing team at ZOTH; these ads should target potential users between the age of 40-50. These individuals should be shown potential investment opportunities on ZOTH with detailed ROI metrics. Potential users within this age group are already aware of the asset class; they will invest if they see lucrative opportunities on the platform
Another way to onboard users is through referral programs; the referral program can be set up using the ZOTH token where the referrer gets ZOTH tokens whenever a new user signs or when the referred user buys tokens on ZOTH (similar to WazirX’s referral program). Extending the referral program with influencer marketing will be lucrative too; the influencer will be expected to explain the ZOTH platform and will promote a referral code to onboard new users.
Excited to see how the platform shapes up towards launch; they are currently onboarding users to their early access program; sign up now at zoth.io!