BitCar.io is letting investors buy their way to exotic car ownership through a revamped token structure. The blockchain platform operates a two-tier system: buyers purchase BITCAR tokens, which they t
BitCar.io is letting investors buy their way to exotic car ownership through a revamped token structure. The blockchain platform operates a two-tier system: buyers purchase BITCAR tokens, which they then trade for CAR tokens that correspond to specific high-end vehicles in the company's collection.
The CAR token model works like this. When BitCar adds a car to its platform, it issues CAR tokens pegged at $1 each, breaking the vehicle's title into blockchain-based fractions. Each car gets its own set of unique tokens that users can buy and sell with one another on an open marketplace.
The shift came after users repeatedly asked for a path to full ownership. Charles Kilborn, executive at BitCar, explained how it functions: "When a new platform car is on-boarded, its CAR tokens will each be pegged to one US dollar, fractionalising the title of the car into the CAR Blockchain currency. Each vehicle will have its own unique 'CAR' tokens assigned to it, which can be traded."
BitCar expects this peer-to-peer trading model to grow into a substantial marketplace over time. Traders gain access to market data, pricing indexes, future valuations, and rankings of top token holders. They use these tools to decide when to buy or sell.
To own a car completely, an investor can accumulate CAR tokens by making offers to existing holders. Kilborn outlined the process: "Buyers in the BitCar marketplace, who over time want to own one of these exotics outright – can seek to acquire more tokens in it, by making offers to existing CAR token holders."
The platform automates much of this. According to Kilborn, the system can "automate trading criteria, shift between different CAR tokens, auto bid, or opt to accept transactions per their set criteria."
CAR tokens carry less volatility than most cryptocurrencies. This stability becomes an advantage during market turbulence, when holders benefit from tokens that don't swing as wildly as Bitcoin or other coins.
After five years, BitCar reassesses each vehicle. Token holders who own all the tokens for a car, or hold a controlling stake, can claim the physical vehicle. Drag-along provisions apply, meaning minority holders would be bound by the majority's decision. Those who prefer to stay invested can return their tokens to the platform instead.
BitCar's token sale is in its third round. The company has raised more than SGD 9 million to date.
