ZrCoin Startup Raises Over 7 Million USD from 4,000 Investors at ICO to Create Zirconium Production Facility
a research and production startup, has raised $7.07 million in
cryptocurrency from 3,955 investors during their crowdfunding campaign.
The campaign was based on an ICO (Initial Coin Offering), a new
technology for investing in projects using the blockchain.
funds collected allow the launch of two synthetic zirconium production
lines with a total capacity of 800 tons per month. The primary goal of
the campaign, which took place from 11 May to 9 June, was the collection
of at least $3.5 million for the construction of the first production
line, with a capacity of 400 tons per month. High demand from investors
led to additional financing, and the opportunity to increase production
Investors will receive ZrCoin tokens, which are hosted on the Waves blockchain platform and which can be transferred and traded on crypto exchanges. Each token is backed by 1kg of zirconium dioxide (ZrO2).
volume of the funds raised was twice as high as we planned. This is a
huge success for the first ICO of its kind on the market. Using
blockchain technology, we secured financing quickly and efficiently. Our
team thanks our investors and partners’, commented Andrey Nikonorov, co-founder of ZrCoin.
to my estimates, the amount of funds raised by ICOs in 2017 will exceed
$1 billion. More and more companies and startups are choosing this way
of securing investment. Transparency and reliability of blockchain
technology, and the wide possibilities of open information systems, lead
to the creation of fundamentally new solutions that make easier the
life for businesses and private users’, added Sasha Ivanov, founder of the Waves Platform.
a bespoke marketing strategy and effective communication with the
online community, whose engagement is exceptionally high in such
crowdfunding campaigns, we and the ZrCoin have established trust with
our audience to create the first ever manufacturing application project
in the cryptocurrency market. We encountered initial skepticism from
some parts of the community, but investors’ interest was obvious — which
the results of the campaign confirmed. I’m confident that the potential
of the ICO as an effective fundraising tool for projects across all
sectors of the economy will be made clear in the coming years,’
explained Vitaliy Tsygulev,
General Director of the Digital Finance Agency, which implemented a
comprehensive marketing and communication strategy for the crowdfunding
starting production, the distributed tokens will be redeemed from
investors at the market price of the final product. ZrCoin was sold at
ICO at a starting price of $1.40, gradually increasing to $1.55 by the
end of the crowdsale. Since the market price of zirconium dioxide is
$2.80 per 1 kg, this provides a significant opportunity for investors
who purchased it in the early stages. Investors can choose whether to
sell their ZrCoin back to the company or on the open market, or to take
physical possession of the zirconium that backs the token.
were able to deposit using various currencies, including bitcoin,
Litecoin, Waves and Ethereum. The breakdown of funds raised is as
838,903 USD950 BTC670,290 WAVES12,373 LTC7,407 ETH27,973 ETC.
ZrCoin project combines advanced technologies in the field of finance
with environmentally-friendly industrial production of one of the most
popular and in-demand fire-proof materials in the world — synthetic
zirconium dioxide (ZrO2). The outstanding feature of the project is the
synthesis of this product from industrial wastes.
project team invested around $1 million of its own funds in the
development of the technology for the production of synthetic zirconium
from wastes from the metallurgical industry. The first plant will be
located in Magnitogorsk in the Chelyabinsk Region. Completion of
construction and the launch of the first production line are scheduled
for the spring of 2018.