Moscow based ZrCoin says it has raised $3.7 Million with the support of over 1,500 participants via an Initial Coin Offering (ICO) on the Waves Blockchain Platform. ZrCoin reports the money was raised during a two week crowdfunding campaign earlier this month The funding was ostensibly raised for the “first commodity-backed ICO” to open a plant to start production of synthetic zirconium in the Urals, with an initial capacity of 400 tons/month in 2018. Synthetic zirconium dioxide (ZrO2) is said to be one of the most popular fire-resistant materials in the world.
The ZrCoin project team say they have already invested approximately $1 million of their own funds in the development of technology for the production of synthetic zirconium, using waste products from the metallurgical industry. They explain that the cost of 1 kg of zirconium dioxide (ZrO2) was used as the basis for the blockchain token, issued by ZrCoin.
The group says the ZrCoin was initially sold on the market at a price of $1.40, and over the course of the ICO its cost will gradually increase to $1.55. The predict that as soon as production and delivery begin, tokens will be repurchased from investors at the market price of the commodity ($2.80). Apparently, physical delivery of zirconium based on token ownership is also possible. After the crowdfunding campaign ends and the ZrCoin token is created and distributed using the Waves blockchain, it can be transferred to exchanges for trading.
ZrCoin says the funds collected include:
- $670,694 USD
- 444 BTC
- 651,430 WAVES
- 2,837 LTC
- 3,120 ETH
- 6,732 ETH CLASSIC
ZrCoin co-founder, Andrey Nikonorov commented on the offer which is ongoing;
“We want to thank investors for their support during the ICO, and we can now confirm that the plant for the production of raw materials in high demand by the industry will be launched. Thanks to blockchain technology, it was possible to attract financing in an extremely short period of time. The bold decision to offer a new investment vehicle backed by the commodity that we plan to produce was met with interest. We now expect that we will be able to raise enough funds for the construction of a second facility. More and more start-ups are choosing ICOs as a way to gain funds for development, and our team is proud to be among the first projects in the cryptocurrency sector with real-world application.”
There has been quite a bit written about ZrCoin and the prospects of the project. Just give it a Google. The Economist mentioned ZrCoin in a recent article about the potential for an ICO Bubble. The author cautioned on the progeny of the offer;
“ZrCoins are backed by the zirconium to be produced. But as in many ICOs, it is unclear why the funds are not raised in conventional ways. And since most ICOs have no link to any particular jurisdiction, it is hard to see what investors could do if issuers abscond with their money. Often they have immediate access to the funds raised.”
We hope this one works out.
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