- STOs are making a comeback, and Tanaga Island is coming out with a bang
- This STO will give you the chance to own a slice of a Philippine island
- However, like most STOs, this STO won’t make you a millionaire unless you’re already fairly loaded- sorry
If you’ve ever dreamed of owning your own island, we think we’ve uncovered a pretty sweet deal. Tinaga Island Resort is hosting an STO that gives you a chance to get your hands on a part ownership of the island so that you can earn passive income as the resort island becomes incredibly successful.
However, as all good investments go, you should definitely weigh up the pros and cons, as we’ve seen a few STOs go very wrong, very fast. Will Tinaga Island be the island STO that makes your dreams come true, or will it be reminiscent of bygone STOs that ended in tears?
Get to Know the Breakdown
Before you go throwing your money into an STO, you need to do some homework. First up, work out how many tokens there will be and how many go to the general public via sales. This will give you a rough idea of what the STO is truly worth.
In the case of Tinaga Island, 53 million tokens will be sold to the public through public sale and presale, accounting for just over 50% of the total token distribution, if you go by the chart on the site. The first batch of 10 million tokens will be sold at $0.10 and the second batch of 43 million tokens sold at $0.20. So, once you factor in all the other token distribution avenues, it looks like there will be about 100 million tokens.
Speaking to FullyCrypto, Daniel Mckinney, Team Leader, Pilot & Connoisseur of fine Islands, stated that around 43% of the total token supply of 100 million will be sold to the public and that Tinaga will hold onto at least 51% of the total circulating supply.
Then, on the Token page of the site, Tinaga Island expects to make $12.5 million from the sale of villas, while making $25 million in sales revenue. If all the money is split between every token, you’re looking at a profit per token of around $0.175 if you buy at $0.20 and $0.275 if you buy at $0.10. This number is only hypothetical and that’s expected returns, so do take this with a pinch of salt. With the minimum buy of $500, that means you’re looking at making $187.50, if you buy at the higher level.
Now, honestly, if you put that $500 into Bitcoin, you’re probably going to make a bunch more money, especially if you time your buys right. Tinaga Island is hosting this STO in order to finance the development of this island resort, as opposed to getting a bank loan, which is fair enough. We’ve seen a ton of projects, both in and out of the crypto world, turn to crowd funding over heading to a VC firm or a bank for a loan.
Don’t Forget the COVID Variable
Now, this all presumes that COVID-19 doesn’t play any factor into the development of the resort and villas, as well as how global travel will look when the resort plans to open in 2024. If the recent COVID-19 vaccine doesn’t prove to be effective, global travel could still be a mess and less people will be travelling. If this is the case, you can expect the villas to sell for a lot less and the same outcome for the expected revenue.
What’s Your Opinion?
Tinaga Island’s STO certainly sounds like a really cool opportunity to get your hands on a slice of paradise, but this isn’t an STO that’s going to make you a millionaire, unless you invest big bucks right off the bat. One really nice feature is that you’ll be able to get discounts on future STOs that Mckinney and his team create, which certainly boosts earning potential of future STOs. There will be additional discounts on rooms once the resort is completed and there will be give away room nights, as well as a few other tidbits that will be announced later on. So, as far as STOs go, this is novel and a pretty cool idea and it certainly has a lot of perks. But, if you’re looking to dump your money into an STO and make a fair old whack in a couple of years, there are a few better options out there.
That being said, owning a slice of a Philippine island is a pretty cool brag. Whatever you do, it’s up to you!