Core Viewpoint - The article investigates the business model of Shenzhen Second Home Online Information Technology Co., Ltd. (referred to as "Second Home"), which claims to digitize and tokenize idle real estate into tradable on-chain warrants (RWA), promising high returns for investors. The legitimacy and sustainability of this model are questioned, particularly regarding the source of high returns and compliance with regulations [2][4][12]. Group 1: Business Model and Recruitment - Second Home is actively recruiting partners through social media, promoting a model where a small investment can lead to significant returns, such as becoming a millionaire with an investment of 10,000 yuan [2][3]. - The company offers various partnership tiers with different investment thresholds and corresponding rewards, including token options and the opportunity to become a secondary distributor [3][4]. - The recruitment strategy emphasizes the potential for high returns through a multi-level distribution model, where partners earn commissions for bringing in new members [9][4]. Group 2: Tokenization and Asset Management - The core business involves converting idle real estate into high-value digital assets, which are then fractionally sold in domestic markets while aiming to issue corresponding tokens overseas to attract international investors [14][12]. - The company claims to have a blockchain certification for its assets, but there are concerns about the authenticity of the underlying assets and the legality of the token issuance in China [16][20]. - Despite claims of partnerships with well-known developers, investigations reveal that many of these developers deny any collaboration with Second Home, raising questions about the validity of the projects listed [22][24]. Group 3: Regulatory Concerns and Risks - The article highlights significant regulatory risks associated with the business model, particularly regarding the legality of token issuance and the potential for illegal fundraising activities [31][39]. - Experts warn that the lack of genuine underlying assets and the potential for multi-level marketing structures could lead to legal issues and financial losses for investors [44][39]. - The regulatory environment in China is strict against unauthorized token issuance, and any activities resembling illegal fundraising are subject to severe penalties [31][35].

Core Insights - The article discusses the business model of Shenzhen Second Home Online Information Technology Co., Ltd. (referred to as "Second Home"), which aims to digitize and tokenize idle real estate into tradable on-chain warrants (RWA) and claims to offer high returns to investors [2][3][4]. Group 1: Business Model and Recruitment - Second Home is actively recruiting partners through social media, promising significant returns on investments, such as turning an investment of 3,000 yuan into a potential millionaire status [2][3]. - The company offers various partnership tiers with different investment thresholds, including 3,000 yuan for junior partners, 30,000 yuan for senior partners, and 100,000 yuan for co-founders, each with specific rewards and token allocations [3][4]. - The recruitment strategy emphasizes high returns through a multi-level distribution model, where partners earn commissions for bringing in new members and managing real estate assets [8][4]. Group 2: Tokenization and Asset Management - The core business involves converting idle real estate into high-value digital assets, which are then fractionally sold and potentially tokenized for international investors [17][19]. - The company claims to have a blockchain certification for its assets, indicating a level of legitimacy in its operations, although concerns about compliance and legality are raised [17][19]. - Second Home's promotional materials showcase various real estate projects, but many developers have denied any partnership or collaboration with the company, raising questions about the authenticity of the assets being marketed [24][27][29]. Group 3: Regulatory and Legal Concerns - The article highlights significant regulatory risks associated with Second Home's business model, particularly regarding the legality of token issuance and fundraising activities in China [39][45]. - Experts warn that the lack of genuine underlying assets and the potential for fraudulent activities pose substantial risks to investors [52][53]. - The company’s claims of compliance with legal frameworks are met with skepticism, as the operational model may conflict with existing regulations prohibiting unauthorized fundraising and token issuance [47][52].