This case study addresses those building their own real business tokenization model, as well as AGTI token adopters, interested in studying the value of such a purchase.
You can find all the additional information on AgroGloryTime website, while here we will try to explain the core of our original method and convince the reader of its promise, illustrating it with real cases of our business.
Our key priority for attraction of financial resources always came down to direct investment. We do not need intermediaries as banks that accumulate huge funds of individuals at low interest rates, and, using various credit and collateral arrangements, put the borrower in a deeply dependent position, associated with the risk of loss control over the business.
The emergence of crypto-investment mechanisms made it easy to attract funds from all over the world. However, for the project to be successful, security, legality and profitability sides are essential. For today, AgroGloryTime is the pioneer in the market who offered the correct tokenization model that satisfies the above conditions.
Here we don’t get into security and legitimacy of the method – it is all described on our website. International lawyers are preparing permissive documents for the Securities and Exchange Commission – SEC USA (which will increase the attractiveness of AGTI for the largest crypto market in the world). However, with the opinion of our lawyers and project advisers up to our sleeve, we are confident that they will not have any significant remarks.
So let us have a look at exactly how we created an attractive ROI for an investor in our AGTI token, with justification and vivid examples.
Key Business Goals
Financial output of farming vegetables is very high if you work with plants professionally and intensively, literally day and night. AgroGloryTime team strictly holds the high production process standards.
As soon as we get involved in tokenization, we set a goal to develop a model that meets the following requirements:
- Investments and capitalization of the company are running gradually, by consolidation of existing and development of new projects, and strictly following the principles of ROI and resistance to various risk factors.
- The earlier an investor purchases the token, the more profitable the investment is for him.
- Even though the token is bought late or very late (that is, at a high or very high price), anyway the investment remains 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 a complete eco-friendly infrastructure). The amount of investments is about $2m. The annual profit also levelled at $2m mark.
But in total we have 5000 acres. Therefore, the same level of capitalization of the entire site requires about $800m. And the annual earnings, respectively, might be $800m as well. However, an agricultural enterprise with an annual profit of $800m has a capitalization counted with a multiplier of 10-20. Considering this, by investing $800m (which will be equal to 1600 token mints), we’ll get an enterprise worth $8-16 billion. As by then the minted supply of our tokens will be exhausted, we can aim at the $AGTI token price of at least $8, which is 266X from now.
The annual profit per token bought after the latest mint will be $0.75*800000000: 1000000000 pcs = $0.6, i.e. when buying a token for $8, APY will be around 7.5%. For the tokens purchased earlier, the profitability will be higher, and for the first buyers – much more.
The core of the proposed model
The AGT holding includes Sevlushfoods LLC (greenhouse project and trade), AGT castle cellars LLC (mushroom gardens, processing and storage) and a few more affiliated companies operating on the land assets owned by Zakarpatsky Sad company. “Zakarpatsky Sad” is the head enterprise of the AgroGloryTime holding, which holds a strategic piece of land of over 5000 acres on the border of Ukraine, Hungary and Romania in everlasting use.
As of July 2022, the assets of “Zakarpatsky Sad” are valued at over $50m. The end number of shares is 160 million. Thus, we have created 1 billion $AGTI tokens so that the nominal value of the token (starting price) will be 0.05 cents and correspond to the enterprise’s starting capital, and 100,000 tokens are easily converted into 16,000 shares. The token’s maximum supply will not increase, so the growth of the company’s capitalization will push the token value up.
$AGTI tokens’ holders share up to 75% of the AgroGloryTime general income. The company additionally protects their early investors by guaranteeing the minimum APR of 25% and 40% during 2023 and 2024 accordingly. The profit will be paid out quarterly in USDT, or other tokens, under the current USD rate.
For example, the owner of X tokens at the beginning of the accounting quarter, with Y tokens totally sold by the beginning of the reporting quarter, receives 0.75*X/Y of the AGT profit for the reporting quarter.
Let’s try to show how this model works for the $AGTI adopters joining the project during the first mints. The table shows the allocation details for five investors, as each of them spent $0.5 million to purchase the $AGTI token, considering the price growth with each mint.
These investments equal to $2.5 million raised by the company.
Drawing back to the average stats of our latest years, we can expect the company’s revenue amounted to $2,2 million in Q3. 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, considering the numbers we got.
We consider crypto investment as the most modern and convenient tool to attract investments directly. There are no correct and verified models of real business tokenization yet. We present our version with assurance that in two years our method will be widely used, in the wake of our success.
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