Cryptovilla.io Review: Is CryptoVilla Scam or Legit?
I usually don’t review anything to do with real estates here. However, we have to admit that Cryptocurrencies are quickly gaining diverse usages in practically every industry, and Cryptocurrencies are one of my main area of focus. Cryptovilla.io presents a seemingly unique opportunity, and there is also some discussions about the Cryptovilla subject on forums like BitcoinTalk.
So this is a huge subject as far as the relationship between real estate and Cryptocurrencies are concerned.
According to the sales page, Cryptovilla is designed to make booking of apartment, villas and luxury travel a convenient thing for a new breed of Cryptocurrency users.
Cryptovilla is a new kind of ICO, and you must always remember that in as much as the basic idea sounds like genuine opportunity with some real potential, there is always the risk of any ICO turning into a ponzi scheme, ultimately causing participants to lose their money.
Cryptovilla tokens called CVL tokens cost $1,000 per token. One of the complaints I have heard from guys who consider this a potential real estate investing opportunity is that these tokens are very expensive.
And indeed when you look at the price of your average token and try comparing with that of CVL tokens, you realize that one has to shell hundreds of bucks extra to acquire the tokens which are on sale at the Cryptovilla website.
Cryptovilla claims to be based out of Singapore, where real estate is main business. To contact them, we have to use their Telegram channel or the phone number +65 3159 3277.
So what exactly is Cryptovilla? Many people, especially the conservative ones don’t understand it quite well. These people are the most likely lot to have the resources for acquiring one token for $1,000.
According to the site, Cryptovilla says they are just revolutionizing the tourism industry by providing best user experience and pocket-friendly apartment booking services.
It got me thinking how this was close to the idea of Air BNB, but with the focus being on real estate business, specifically in the booking of apartments niche.
Cryptovilla comes in where the host needs to market their apartment to potential tourists who might be looking to reside in those apartments.
So they believe that by introducing Cryptocurrencies in form of an ICO to this industry, they will be able to eliminate some of the problems suffered by the guys who work in this industry.
They claim that this is an algorithmic blockchain concept for new-level booking experience, and for the investor, this is ”risk-less”.
There are many other supposed advantages that are tied to what Crypto Villa claims to offer.
Investors are assured of carefully thought-out model tokenomics to ensure token growth in the future, unique business conditions for hosts and guests which make Crypto Villa impossible to compete with and a system that redeems booking tokens into Eth during and after the ICO.
Cryptovilla also claims that it provides its own real estate accommodation in addition to carefully selected external partners who list their property on the site’s catalogue.
Problems Cryptovilla is claiming to solve
They want to eliminate the problem of paying high commission for both the host and the tourist which they believe is caused by major industry platforms.
Secondly, they are focusing on providing quality accommodations by giving tourists the chance to book high-quality lodgings from motivated hosts as opposed to mediocre services from hosts who are looking for quantity rather than quality.
Thirdly, Cryptovilla tells us that visitors will be able to avoid problems related to current automatic booking systems which rely on inaccurate data and insecure payment systems.
In other words, Crypto Villa only wants to approve your booking and payment once they have confirmed that the apartment is available for booking.
The reason investors are encouraged to purchase CVL tokens here is because the price will rise during the burn out phase when it gets converted into BTN token.
This model allegedly allows CryptoVilla to offer quality apartments for the price of standard ones and without charging booking fees.
The MLM side of CryptoVilla
While marketing is the main reason why an ICO project can be successful, we have to be extremely cautious when it comes to systems that adapt MLM model of promotion.
Many of the projects that rely on ICOs to crowd-fund their activities often turn out to be ponzi schemes at some point because they sell tokens to many investors only for those investors to discover that the tokens they bought have no real market value.
First of all, Crypto Villa has come up with an attractive referral program where referrers get a compensation of 9% for the price of the purchase.
On the other hand, investors who get into this will allegedly get more value if they purchase CryptoVilla’s token (CVL) and converted it into BTN tokens.
They make 120% to 250% of BTN tokens. Transactions can be done on an internal exchange where members can also trade BTN tokens with ETH and vice versa.
CryptoVilla review – is this a scam?
At the moment, I will not assure any of you that this is a scam. It looks like it’s got some potential. However, the ponzi scheme side of things scares me a lot.
It makes me believe that this is not Diamond in the rough, contrary to what the platform had led me to believe.
Secondly, these tokens are very expensive. I am not so sure if many investors can pour their money upfront on a product whose sustainability has not been proven either.
Remember that the value of the token is set by the guys who own Crypto Villa and we can never be so sure of the claim that the value of BTN keeps rising because of the burning out process of the CVL tokens.
Ultimately, if this thing fails to hold in the long run, we will see a situation where Crypto Villa does an exit at a time when 90% of investors are holding funds in BTN tokens.
You cannot use BTN tokens outside the CryptoVilla ecosystem. So if they do the exit and the internally-built exchange dies with it, there will be nowhere to exchange BTN into real money.
I have reviewed almost similar projects before, and this is the worst fear you can have.
CryptoVilla review – the conclusion
I am not entirely against the site and the idea considering that real estate in Singapore is big business.
In theory, things may look simple and it may seem like making money with this project will be easier in the long run.
However, this will require actual work and commitment from the owners of this platform. We cannot just give them the benefit of doubt without first conducting due diligence.
My recommendation is that you should not get into this ICO yet until sufficient investor feedback has emerged.
If possible, just keep trading Cryptocurrencies the usual way.