Today 90% of the cargo lots are delivered by sea. On the contrary sea freight is one of the most technologically outdated industry exist. Founders wanted to take advantage of this condition of the industry and implemented CargoCoin project.
The size of the transport industry is tremendous. According to World Trade Organization statistics, the global value of the seaborne trade itself is over 12 trillion USD. The value of freight rates is 380 Billion USD in 2017 according to United Nations Conference on Trade and Development. Imagine the processes involved in such a large industry are invented more than 50 years ago. Bill of Ladings, Credit Letters are two main examples of the outdated processes which are still issued as paper documents. These documents enable payments to be guaranteed and processed and defines the load and ultimately enables the processes to be executed related to international trade and transportation.
Major Problems of the Industry
Delivery and confirmation of this paper-based documents relies on carriers and traditional transportation means. This nature of the process brings delays.
In addition, on top there are delays caused by traditional banking system because of, outdated transfer systems (SWIFT system was invented in 1975)Banks have 9:00 to 5:00 working hours and there are different time zones and different bank holidays in different parts of the world which all adds on top of delays
Bank payments are expensive with USD 1.6 trillion in annual cost (WTO, Institute of International Finance, Federal Reserve)
Carrier services are expensive and causes delays (2-4 days)
Confidentiality of document processing by 3rd parties is not guaranteed
Original document might get lost during along the way or in the office piles
Delays causes additional costs and effect negatively the whole supply chain. The opportunity cost of the equipment (ships, containers & port facilities) due to payment delays is estimated to be around USD 29 Billion per year. (UNCATD)
The Solution
CargoCoin is a platform which aims to solve all these problems by utilising blockchain and smart contracts. All the work will be minimized to a simple click.
The carrier will prepare a proposal for the cargo, define the terms and conditions of the cargo, create electronic Bill of Lading and Letter of Credits, pay for the insurance and sends the cargo by using the application. The client approves the proposal, tracks the cargo, pays for the cargo, port services and all other supporting services.
Objective of the platform is to cover all the means of transportation including, seaborne, inland, airborne and drone in 5 years at max.
Team
This project is founded by two business man who has got the two necessary experiences which are vital for a business. Founder Alexander Bogomil has 20+ years of financial software development experience who is the financial and software expert of the project. Bogomil has a BA in Finance and International Trade. Another founder Martin İliev has 18+ years of experience in the logistics, shipping and international trade and he is presently a ship owner. He holds BSc in Economics & Business Finance and MBA degree. There are total of 14 team members who are expert in their fields.
Advisors
The advisory board is composed of many senior professionals who has extensive expertise in the fields of technology, blockchain, executive management, sea trade.
Roadmap
The project has a solid roadmap for the complete transportation platform including inland, railway and airway.
Token Metrics
Token Standard: ERC223
Total supply: 100.000.000 CRGO
ICO price per token: 1 USD per CRGO
Bounty allocation: 10.000.000 CRGO
ICO Timeline
Bogomil want to keep the total raised funds inside the team to prevent speculation. They have changed their initial ICO timeline because of Bear market. Right now ICO Round 3 is ongoing until August 31st. He stated that ICO will continue until all the coins are sold. The specified end date is end of 2018.
Conclusion
The figures represent the value proposition of the platform. I have insider knowledge about the costs and delays of the industry who have worked in industries which receive or send bulk liquid and solid cargos by nature. Time is really money in this industry. Ship and logistics company owners would love to do anything which lowers costs in the first line. Therefore, I believe this platform will be adopted by the industry participants.
I love this project not only because it will bring many benefits to the industry participants but it will also help mainstream adoption of cryptocurrency and blockchain. The team emphasises that one of their main duty after ICO is to work for the increase the value of CRGO coin therefore making investors and supporters happy. They have announced that 7% of the funds received will be used for Exchange listing and 50% is for marketing & sales which are the proof of their statement.
Since the team is composed of business mans who knows both the technology and the business it will be implemented. This makes this project more reliable.
Total supply is not too much but it has a moderate risk to reward ratio which with a high liquidity would bring many multiplier ROI. It would be a good coin to trade with these fatures.
What I like most about the project is that the founders states that one of their most important priorities that they will try their best to bring value to the coin and make ICO participants and supporters happy.
They have already partnered with Bancor exchange, Nauticus Exchange (a new Australian exchange which is to provide transactions with 300 of coins and 16 fiat in 3 years from now), Arousal, Ehen, Extradecoin, bitrue, H&B Exchange, OEX Exchange and have a pending application for Binance. There exists a statement that the 50% of the funds to be raised will be utilized for marketing and sales.!
