ELOOP, a Vienna-based car sharing service, has tokenized a fleet of Tesla vehicles, a real-world use in how Web3 can generate profits for token holders. The company is offering investors the chance to share in profits from ride-share trips, with profit-sharing split 50/50 between the company and those who buy-in.
To do so, ELOOP has launched the $EOT, which the company bills as a “security token.” With the token, holders can own part of the Tesla fleet and share in the revenues from ride shares, which are focused around longer trips rather than intercity transportation. Holding the token gives access to a dashboard where users can cash out into fiat currency.
According to the company’s website, it has already sold 1.9 million $EOT, with one token worth around 1.20 EUROs. It has tokenized 21 Tesla Model 3s and two Tesla Model Ys. The company’s whitepaper states that the average lifespan of a rideshare vehicle in Europe is around four years. After that, the car will need to be replaced.
One of the selling points, according to ELOOP, is the fact that these vehicles have zero-emissions and don’t cause any additional damage to the environment. This is contrary to many gas-guzzling cars, which have emissions that damage the environment. Currently, the investment period is open to anyone who would like to participate.
With a purchase of at least 100 $EOT tokens, the investor will receive free driving credits with the company, a perk the company has likely added to entice investors. This is the second sale of $EOT tokens, with no close date stated, although the company has already sold 98% of its tokens.
ELOOP: Web3 Meets Internet of Things
As some innovators have stated, Web3 needs to pair itself with real-world items to speed up adoption and appeal to a mainstream audience. One of the ways to do that is to leverage tokenization with the Internet of Things (IoT), which is a term that refers to a system of interconnected devices and objects that share data.
In fact, ELOOP’s tokenized fleet is stored on Peaq, a blockchain network hosted on Polkadot. The founders of ELOOP chose Polkadot because of its incentivization of IoT and the fact that it is operable with a variety of networks.
While the tokenized Tesla fleet may not be a classic case of IoT (one typically thinks of a home network with smart appliances communicating with each other), it certainly utilizes the internet and blockchain for a variety of functions. In its whitepaper, ELOOP describes its system as one with low volatility, an easy purchasing process, and no brokerage fees.
If ELOOP is successful, perhaps we’ll see more use cases where a company tries to pair Web3 with IoT. For now, it is certainly a novel approach and one that can provide investors with a predictable return, especially through passive income.
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