The introduction of the EMP collateral approach is critical to enabling large scale investment from institutional investors. In this video Andrew Forson, Empowa’s Head of Quantitative Analytics and Risk, talks about the advantages of engaging institutional investors for the Empowa ecosystem from capital raised, to regulatory requirements/compliance and platform liquidity.
A summary of the video can also be seen below
Empowa employs a lease-to-own contract and funding model that seeks to provide affordable housing in emerging markets. The project has been gaining traction and attracting attention from investors across the globe. However, many in the Empowa community may be concerned about the role of institutional investors in the project. In this article, we will explore the role of institutional investors in the Empowa project and how their involvement could impact the community.
Firstly, it is important to note that institutional investors bring accountability and capital to the platform. Every transaction in the Empowa ecosystem requires the use of the EMP token for validation. Therefore, having more capital coming into the platform is a benefit to all token holders, and institutional investors are a reliable source of capital. Furthermore, their involvement brings liquidity to the platform, which is crucial for the growth and success of any project.
Institutional investors also impose rules and regulations that serve to make the platform better. They require compliance reporting, access to information, and due diligence to mitigate risks. They want to be assured that the instruments created by the project are compliant and free of any funny business. This is especially important for traditional institutions that have a somewhat perverse view of Web3 technologies.
Empowa has been proactive in deploying blockchain technology to the benefit of the affordable housing sector. The project has taken steps to speak the same language as institutional investors in terms of valuation, risk mitigation, securitization, and collateral. Institutional investors require certain technological solutions and tools to see where and how their capital is being deployed, and Empowa is well-equipped and ready to provide these tools.
Moreover, the involvement of institutional investors could impact the community positively in several ways. Firstly, it could accelerate the adoption of the EMP token, which is defined as a utility token that can be used for collateralization purposes. Secondly, it could bring critical liquidity and enhance the reputational value of the Empowa project as a whole. Institutional investors’ involvement effectively means that the project is adding rocket fuel to existing EMP token holders.
Lastly, the involvement of institutional investors could also have a positive impact on the emerging market of Africa. Empowa engages developers in many countries, and the demand for housing and homes is so high that institutional developers could participate and help. This would increase the chances of a better return for all participants in the community, particularly on their EMP token and any NFTs that they participate in.
The role of institutional investors in the Empowa project cannot be overlooked. Their involvement brings accountability, capital, liquidity, and rules and regulations that serve to make the platform better. The involvement of institutional investors could also impact the community positively in terms of accelerating the adoption of the EMP token, bringing critical liquidity, enhancing the reputational value of the project, and increasing the chances of a better return for all participants in the community.
If you would like to find out more about the Empowa approach to raising capital for affordable housing check out the full video series explaining the Empowa Blackpaper here or visit the Empowa website at Empowa.io/blackpaper.