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Eloop One Token III

I did a memo on the Eloop One Token before their launch in August 2020 where I shared some assumptions and then I did another one exactly one year after sharing real numbers for the first 12 months. Both memos are in German and since the numbers changed quite a bit since I thought it was a good idea to update now after almost three years. 

Lately it also seems that the token holders became more international judging from the English conversations in the Eloop One Telegram Channel. And Eloop changed their email updates to English this year which is why I also switched to English for this third memo on the Eloop One Token. 

Previous memos

Eloop One Token I
Eloop One Token II


In these two memos I mentioned the advantages of getting car sharing credits for your EOT when being an Eloop customer. These advantages are significant and can make this investment a lot more profitable. For this memo I will focus on the numbers from the perspective of a passive investor who is not a regular Eloop user and therefore cannot take advantage of the far better payout ratios. 

As a reminder:

When you pay out your EOT profits as credits you get 2x the return! On top, depending on the tier you are in, you get significant cashbacks as a user. So the Eloop offer is very compelling if you are a token holder and a regular car sharing user. Make sure to check the details on the Eloop One website.

3 years of data

With almost three years of data from Sept 2020 to June 2023 our annualized rate of return before taxes is 2.85%. In this time period the first year started very strong with a 5% profit yield, followed by a weak second year with just around 1%. The last few months are showing improvements towards 2% for the third year. 
 
Keep in mind that our calculations are based on our purchase price in September 2020 of €1.00 per EOT. If you bought EOT at a different price later on, these numbers will look slightly different.
 
I assume the poorer performance was mostly a function of scaling too quickly with more cars in the pool than the market demanded. However, in 2023 the trend looks quite positive.
 
Here’s a chart for the quarterly cash profits for investors per EOT from Q4 2020 to Q2 2023.
It looks like the business is back on track to 1c profit per token per quarter which would mean 4c profit per year. At current purchase prices on the Eloop One website of €1.20 that translates to 3.3% ROI before taxes. Again, keep in mind this number doubles if you pay out your profits in carsharing credits and additionally you get other cashback advantages on top. 
 
I don’t know exactly for what price tokens are bought and sold privately but I assume it’s below €1 per EOT. We got roughly 20% in carsharing credits since we bought in early. So those credits should make up for the loss in value of the tokens for now. We don’t use Eloop that much since we have a Model 3 company car ourselves but it’s still good to know to always have access to electric cars in Vienna and now with Model Ys in the fleet as well, there might be use cases where we will make use of our credits. 

Conclusion

We need to be patient and see a few more years of operations to really get a good idea of the true ROI of the Eloop One Tokens. By then, there hopefully will be a liquid secondary market for such security tokens. Especially for active Eloop users, their token offering seems like a very interesting concept. For purely financial investors, it has been a mixed bag so far. For Eloop as a company these incentives to get users to also be co-owners of the fleet seems like a win-win. So hats off to the concept and their execution! 

12. Juli 2023