In line with my promise to shine light on projects whose ICO'S are going to hold on the best ICO platform , Skyledger by skycoin project , I present today Metalicoin . Its is a cryptocurrency that is backed by real metals
Once, all money was backed by gold or silver. Today it is backed by nothing, and governments keep stealing it from us by printing more and more to fund ever expanding spending and control.
The crypto-currency market is still immature and companies are experimenting with different technologies and business models. The biggest challenge for almost all crypto-currencies is that they are not backed by anything real.
METALICOIN
Money backed by real metal the way it used to be and Secured by the Block-Chain, the way it should be
You can use MetaliCoin to buy all the main metals at deep discounts and trade them whenever you want
Metals are the basis of our technological society.
Yet most people are far removed from the metals that power their lives. They are locked out of the security, value and profitability that metals can provide.
The whole metals cycle is held by a tightly controlled club. Sure, people can invest in the shares of the biggest mining companies, but who has access to the early stage gains? Most of the investment and all of the trading is limited to corporate advisors, investment bankers and global trading houses. Ordinary people simply don’t have access.
Very few private individuals hold gold and almost non hold industrial or technology metals. Those who do buy a small amount of bullion always pay retail prices, so others have made most of the profits.
MetaliCoin breaks open the metals club and lets anyone buy metals at the early stage, for deep discounts (and with high risk)
Right now, globally, there are well in excess of five thousand exploration or early-stage mining projects, collectively seeking more than $25 billion in funding.
Early-stage mining projects are risky, speculative ventures and many of them will never reach production.
However, some will provide extraordinary returns for earlyparticipants. The key, as ever, is being able to invest in the
right project at the right time.
Metalicoin's focus in this project is on small and medium mining projects which are aiming to produce a range of non-ferrous metals and other materials. This is a subset of the mining industry they understand and know well.
Metalicoin aim to solve several inter-related, large and important problems for both the mining projects and their investors
MetaliCoin aims to overcome both the funding and the investment challenges by delivering a blockchain-based
platform which will allow for efficient promotion and discovery of mining projects, and for funding by means
of commodity pre-purchase. Funders will enjoy transparency and liquidity via a dedicated Crypto Metal Exchange
The MetaliCoin Vision is to efficiently and transparently fund the world’s new mines, profiting and delighting both funders and producers by providing a global, immutable crypto store of value based on physical metal.
The core concept of MetaliCoin is to build a platform to help private and small-cap mining ventures secure funding far more quickly, effi ciently and cost-effectively than it is possible today. This will be accomplished by using crypto-currency and smart contracts to deliver accountability, transparency and liquidity for all parties.
The funders pre-purchase metals from the mine at a significant discount.
The primary coin of the MetaliCoin platform is the MetaliCoin(METL). This is a coin based on a weighted basket of
all of the metal represented by the projects on the platform and held by the coin holders. The weighting of the value
of the metals is the product of the quantity of each metal multiplied by the spot price of that metal.
When a project is approved on the MetaliCoin platform, a new “project-coin” is created for the project. The projectcoin
is backed by the primary commodity (e.g. gold or zinc, etc.) that will be produced by that project. Project coins are freely tradable for METL . In effect METL acts as the reserve currency for the platform as it represents the weighted value of all commodities within the platform
So the value of MetaliCoin will be driven by the weighted value of the project coins as mentioned but ALSO a basket of precious metals that MetalCoin will be purchasing and have vaulted to provide liquidity of the coin. This week Metalicoin purchased $40K USD of Gold, Silver and Platinum to help facilitate this process. The funds raised from the ICO will also go into purchasing metal and providing liquidity of the coin. They will be publishing the weighted value of the basket of metals between USD/ METL so at any point in time you will know the value of your coin. So if market manipulation was to occur (and lets face it’s crypto), this underpinning to the metal (under, in production and above the ground) will allow a MetaliCoin holder to trade in their coin and get the associated weight back in metal. BUT, it’s important to note it will not be 1-for-1 backing - it's just underpinning the value. The value of the MetaliCoin should always have a premium over the metal, as Metalicoin will create an ecosystem where MetaliCoin is used by all the major parties in the mining production process for the payment and acceptance of services. There is a fixed supply of 300m coins, as more mines seek funding and investors come seeking projects, demand should rise - also contributing to the market value of the coin.
To be very clear, when an investors participates in funding a mine, they buy the metal (and effectively pre-purchase it) they do not buy equity in the mine (hence don't get dividends). Metalicoin has looked at it though. Their original intention was to have both metal purchase and equity purchase. But with the current regulatory uncertainty, it's just not viable. They hope in the future we will be able to have proper regulatory arrangements to also allow for equity crowd-funding through MetaliCoin, but not in the original release. BUT, part of the agreement with the mine is that the obligation to deliver metal against the coins remains even if the mine is sold.
Now this is all facilitated by the blockchain and the inbuilt smart contracts. Metalicoin envisage this to be the digital currency for the mining industry.
MARKET OPPORTUNITY
Capital raising for early stage mining projects – especially in unlisted companies – is difficult and inefficient
• Miners only have access to a small group of investors
• Investors lack transparency and liquidity
• Intermediaries – Corporate Advisory and Brokerage firms – charge high fees, are slow acting and have a limited pool of investors
SOLUTION OVERVIEW
• The MetaliCoin Platform offers a cost-effective, global, transparent and accountable way for small miners to raise funds from a global audience
• Standard-form mining proposals are clear, accountable and transparent. If milestones are not met, funds are not released
• Backers can pre-purchase commodities at deep discount
– it’s like Kickstarter for mining projects
• The Platform features its own currency, which is commodity-backed and can increase in value as demand grows
• Backers have instant liquidity – they can trade commodities and equity on the platform and trade out of the Platform currency into BitCoin or USD at ultra-low transaction cost
BENEFITS TO BACKERS
Pre-purchase preferred commodities at deep discounts
• Accountability and transparency of funds draw-down and use
• Independent review of geological, metallurgical and technical aspects of projects available
• Instant liquidity – trade commodities and equity units on the platform
BENEFITS TO MINERS
Rapid access to funding via a global network of backers who are interested in mining
• Standard project descriptions and accountability improveoperations and governance – hence trust
• Very low transaction costs
• No need to deal with corporate advisors and brokers
• A path from initial start-up, mezzanine and into public markets on a single platform – full documentation and
history of each project in a single, secure location
BUSINESS MODEL
• Aim: to efficiently funds the world’s mining projects, growing the industry and investor base
• Capital appreciation:
• Participants gain as the MetaliCoin token appreciates in value against BitCoin and USD – early participants benefit the most
• Commodity appreciation (especially given commodities are pre-purchased at a deep discount)
• Revenue model:
• Transaction fees (very low)
• Add-on services (e.g. Independent Geological
reviews)
• Data services
• Cost-base:
• Very low – technology built on open-source, proven technologies
• Lean staff & partnership model
• Marketing mainly via PR, on-line and industry events(mining, investing and Block-Chain)
TECHNOLOGICAL OVERVIEW
MetaliCoin is “built on the Block-Chain”
• This distributed-ledger technology is highly secure and almost impossible to hack or alter (“immutable”)
• Transactions are run automatically via smart-contracts, so participants have to follow the rules set by the system (“trusted”) and transaction costs are extremely low (“cost-effective”)
The Metalicoin team is made up of seasoned of global leaders in financial system architecture, blockchain ecosystems and cryptocurrency design, banking and mining finance.
MetaliCoin is building a team that will morph as the platform evolves and grows. The initial core team combines
deep expertise in mining and commodities and a thorough understanding of technology with world-class experience in design and communications.
As a crypto-currency based blockchain system, MetaliCoin will be funded via the sale of MTCN coins via crowd sale.
The objectives of the crowd sale are:
• Fund the development of the MetaliCoin Platform and the CME system
• Promote the system extensively in the mining, Bitcoin/Crypto-Currency and broader investment community
• Put the full team in place to operate, promote and develop the business to attain its vision
• Seed the initial pool of funders who can pre-purchase commodities to fund projects
• Fund a number of early projects to develop proof points for a much broader range of producers and funders
• Ensure full regulatory compliance in all of the jurisdictions where projects and funders will be located
• Provide working capital for initial operations until the business is cash flow positive
• Purchase metals to support treasury and market making functions and act as a reserve to underpin the value of METL
The intention is to run a full ICO process within approximately 90 days of the pre-ICO closing. Details of the ICO
will be made available in a subsequent post
you can follow the Metalicoin project at
http://metalicoin.com
https://t.me/Metalicoin
https://www.reddit.com/r/Metalicoin/
https://twitter.com/metalicoin
https://www.linkedin.com/company/metalicoin/
white paper at https://metalicoin.com/wp-content/uploads/MetaliCoin-Whitepaper-v-1.1-Nov-2017.pdf
