Shipping containers may not sound like the most exciting thing in the world, but there is an ICO about to get underway that looks very promising indeed and it is called Blockshipping.io.
Currently there are significant problems in the shipping container industry, with large inefficiencies and a number of companies facing financial difficulties.
Blockshipping are proposing a new blockchain-based solution to these various inefficiencies and estimate they could save the industry over $5.7bn per year, as well as reducing global CO2 emissions by more than 4.6m tonnes annually. So this could be a win-win for the shipping industry and the planet — as well as potentially for investors in the ICO.
What is particularly interesting about this ICO is that they are offering a token with a payout, which as followers of my Crypto Dividends Portfolio will know, I am a big fan of.
So below I will take a look at what Blockshipping is all about, how their system will work and details of the ICO.
The global container shipping industry currently makes up about 60% of seaborne trade and its value is estimated at $12tn per year. However, the industry is rife with inefficiencies and faces problems of overcapacity, security threats, a lack of digitisation and increasing environmental regulation.
Blockshipping are proposing a new system — the Global Shared Container Platform (or GSCP for short) — and it will provide solutions to a myriad of problems, namely:
So as you can see, they would provide multiple benefits to the shipping container industry and radically reduce costs and inefficiencies. If successful they could transform a huge market, which would be quite an achievement.
As mentioned earlier, one of the most exciting aspects of the Blockshipping project is that they are offering a token with payout. However, there are in fact two tokens being provided by the Blockshipping project. These are:
In terms of the CCC, here is how the revenue sharing model will work:
Initially, 20% of the gross revenue from transaction fees paid in CPT on the GSCP platform will be distributed to CCC token holders. The percentage will drop as revenue rises however, on the following basis:
So they estimate that payouts could start out at a yearly ROI of around 1.42% in 2019, growing to over 10% p.a. by 2022. This all depends of course on how much revenue they generate, which remains to be seen but it is good to see they are offering a revenue-sharing model.
They plan to pay out the revenue in CCC tokens via a reverse Dutch auction model (once all the CCCs are used up).
The public sale begins on 14th May 2018, with the pre-sale already underway. The key information for the ICO is as follows:
· Start date:14 May 2018
· End date: 14th June 2018
· Token: Container Crypto Coin (CCC)
· Platform: Ethereum ERC-20
· Price: Fixed at $0.62 per CCC throughout token sale
· Soft cap: n/a
· Hard cap: 40m tokens, $24.8m
· Currencies accepted: ETH, BTC
· Minimum investment: $100 equivalent
Tokens will be allocated as follows:
· Pre-sale: 10%
· Token sale: 70%
· Founders and employees: 5%
· Advisors and partners: 10%
· Bonus for pre- and public sales: 5%
The ICO has received some very good ratings from ICO review sites, including the following:-
Overall then a strong set of ratings there, ranging from good to excellent.
This is an impressive project from a genuine company with a great deal of experience in their field. The team looks strong and they have already secured backing from the Danish Maritime Foundation amongst others.
The shipping container industry does seem like an industry ripe for disruption and Blockshipping have identified some key areas where technology and blockchain could help address inefficiencies. From that point of view it is well-thought out and the Whitepaper is very comprehensive.
They have an ambitious goal to achieve 60% market penetration of 16 million containers being covered within 4 years. Whether this will be achieved remains to be seen, but apparently they already have strong interest from some of the world’s largest shipping container companies.
It is good to see a revenue sharing model included in the business plan, although it is a shame that the percentage shared with token holders will decrease as revenue increases. It would have been better to see this remain at 20%, or at least not drop so dramatically, but no doubt they have to factor in the revenue share in their business models to ensure they are still profitable.
In any event, this looks like one of the stronger ICOs there has been recently and I would not be surprised to see it sell out.