ZrCoin, the first tokenized factory in Russia, has raised nearly $1.4 million from 800 investors on the first day of its ICO, with $300,000 being the highest investment. As of now, the sum of raised amounts has surpassed $1.6 million.
The project seeks to provide an opportunity to invest into options for industrial products. By purchasing ZrCoins issued on Waves platform, investors finance construction of a new production facility.
Remarkably, the first synthetic zirconium factory is scheduled for December 2017 in Russian city of Magnitogorsk. According to the project’s founders, production of synthetic zirconium dioxide is highly profitable, therefore investors may have a high interest.
ForkLog contacted ZrCoin CEO Vadim Sychev to find out details of the ICO and the project’s plans for the future.
FL: In your opinion, are independent Russian industrialists able to raise funds in a traditional way?
V. S.: It’s fairly impossible. First, when giving you a loan, banks demand for collaterals building up to 200% of the initial loan amount. For instance, if you need $3.5 million of a loan, you’ll have to have at least $7m worth of property. This way doesn’t work for us.
Second, when you address a specialized investor, you tell them you’ve got a project, a technology, expert conclusions, and virtually everything else but money. Investors usually say they may give you money, however, they would have 80% of the company’s shares, while leaving the remaining 20% to the developers. You just hand a promising innovative technology to the investor.
By raising funds via an ICO we opt for keeping the technology in our own hands while allowing investors to earn from a rapidly developing innovative production facility. Blockchain makes it all transparent and reliable.
FL: What’s the main advantage of ICO for staple industry or farming?
V. S.: The advantages are obvious. This method allows for using new technologies, gives new incentives for development of various industries. I hope our project could pioneer the area and give an example other developers and industrialists could learn from. As for me, the future is in implementing new technologies.
FL: When did you first meet blockchain and cryptocurrencies?
V. S.: It came about of itself. I was looking for new options to fund our projects. This area has been widely discussed recently, so we decided to combine blockchain, cryptocurrencies and new technologies to develop the production sector. I think it’s going to be an interesting project.
FL: Blockchain market is still mostly virtual. Why do you think it’s ready for implementation in the real sector?
В. С: Philosophically speaking, a thought is tangible. Lasers used to be sci-fi, but now it’s a part of our lives. Blockchain technology is entering the investment market, which makes the process more transparent, reliable and intermediary-free. I think we just have to believe in it, do something, and everything will work out.
FL: Who and when has developed ZrCoin technology? Was it applied somewhere?
V. S.: The technology has been developed by our group’s scientists. The basic idea was to create a technology that could recycle industrial waste. It didn’t come about right away. It took our developers some time to cover the industrial waste it was creating.
Now it’s about 100% recycling of glass-industry waste. We get 80% of synthetic zirconium concentrate that is used in fire-resistant solutions, and 20% of mould powder used in metal works. All those materials are in demand and quite expensive.
Our technology is unique, and we’ll be the first to implement it. The implementation, however, would have taken much longer hadn’t it been for ICO.