ZrСoin The world's first commodity-backed blockchain option
The world's first commodity-backed blockchain option
Based on real production
Complete transparency at every stage
Unique, stable and innovative blockchain product
Opportunity to become a shareholder in production company
100% cash back on demand
Over $1 million in R&D
What is ZrСoin?
ZrCoin is the first ever blockchain option for investing in the production of an in-demand industrial material.
- ZrCoin is the first ever blockchain option for investing in the production of an in-demand industrial material.
- ZrCoin is not susceptible to inflation or typical cryptocurrency volatility. As such it is a reliable tool for the preservation and growth of capital funds
- Investing in ZrCoin at the early stages of the project us expected to yield 100%+ profit
- We are committed to complete transparency at every stage of the investment cycle, from production to deployment and ZrCoin buy-back ZrCoin is a liquid trading asset
- Investors can receive back the funds they have committed at any point after the end of the ICO
- After production launches, the manufacturer will buy up a minimum of $400,000 of ZrCoin per month
- Investors can redeem their ZrCoin for physical ZrO2 if they prefer
How it works?
Investors participate in the project by purchasing ZrCoins, which are a blockchain token option with underlying asset of 1kg Synth. ZrO2 The unique conditions are offered to early investors (to 50%).
Investors can ask for their funds to be returned at any point after the ICO ends. The project is fully insured to enable this guarantee.
The project is insured completely to assure guarantees.
Crowdsourced funds will be used to construct a state-of-the-art green manufacturing facility for the production of Synth. ZrO2 with purity >66%.
Production areas were chosen also
The production line will be completed within 6 months of the end of the crowdsale. Investors will be able to inspect the progress of the facility via webcam. Each investor has a possibility of visual control over equipment installation and start-up and commissioning works
Manufacture of Synth. ZrO2 will start no later than 7 months from the end of the crowdsale. The product will ship to buyers immediately.
After commencement of production, the enterprise begins shipment of a manufactured product to buyers in conformity with the signed agreements.
The enterprise will begin buying back ZrCoins at the market price of 1kg of Synth. ZrO2 in amounts of at least $400,000 per month, no later than 8 months from the end of the crowdsale. Investors also have the option of taking physical delivery of the product. Each investor has the right to choose between the sale of basic asset and the receipt of relevant quantity of Synth. ZrO2
Acquisition of land
Crowdsale followed by purchase of pre-selected plot of land for production
Necessary equipment manufactured by leading technological companies in the industrial machinery market
Hi-tech equipment has superior efficiency and is environmentally friendly
Two-stage construction with two separate factories built
Estimated construction period - 6 months
Two production lines launched within a month of completion of construction
Supply of raw materials
Raw materials supplies under the pre-signed contracts begin 8 months after the investments are raised.
Industrial wastes both from operating manufactures and industrial dumps are used as raw materials (Bacor scrap)
Refractory materials production
Product shipment to the global market begins 8 months after crowdsale
Synthetic zirconium dioxide is a material in high demand for the production of refractory materials
Slag-forming mixture – a by-product of manufacture – is also in demand as a material used to avoid heat loss
ZrCoin ICO — timeline and details
The month-long crowdsale will launch on 25 April, seeking to collect a minimum of $3.5 million.
ZrCoin is crowdfunding investment for the construction of a
state-of-the-art facility that will manufacture synthetic zirconium
dioxide (ZrO2), a key industrial commodity in high demand as a
refractory material, especially in the manufacture of ceramics and
nuclear reactors. The factory will use an environmentally-friendly
process to recover zirconium from industrial wastes rather than
extracting it from the earth. The result is not only more ecologically
sound, but also more cost-effective and of higher quality than existing
forms of zirconium.
Schedule. ZrCoin’s crowdsale will start at 00:01 UTC on 25 April and last for one month, ending at 23:59 UTC on 24 May.
Bonus structure. ZrCoins will be sold at a discount to the market price of ZrO2, and will gradually rise in price over the course of the crowdsale. The discount will start at 50% ($1.40), falling to 44.5% ($1.55) by the end:
Day 1: $1.40
· Day 2: $1.44
· Day 3: $1.46
· Day 4: $1.47
· Days 5–6: $1.48
· Days 7–13: $1.50
· Days 14–20: $1.53
· Days 21–26: $1.54
· Days 27–30: $1.55
Currencies. ZrCoin’s crowdsale will accept BTC, ETH, ETC, LTC, WAVES and USD.
Token supply. The total supply of ZrCoins will depend on the amount of funding committed at crowdsale. (E.g. if $4 million is raised and all tokens are bought at $1.40, there will be 2.86 million ZrCoin tokens.)
Platform. ZrCoin will be created as a token on the Waves platform. Distribution to investors will take place following a thorough audit after the crowdsale ends.
Escrow. All funds will be held in escrow, using two-of-three multi-sig wallets wherever possible. A list of escrow partners can be found on the ZrCoin website.
Funding targets. ZrCoin aims to raise a minimum of $3.5 million USD. The crowdsale will be capped at $7 million, which would give the company enough funding to build two factories.
ROI. ZrCoin will start buying back tokens at the market rate for ZrO2 — approximately $2.80 — around 8 months after the ICO ends. In the meantime, tokens can be traded on supporting exchanges.
Interview With The Creators Of ZrCoin
The uses of ZrCoin
ZrCoin is our project’s ICO token, but it will have application beyond the crowdsale due to its nature as a cutting-edge blockchain financial instrument.
We will shortly be holding the ZrCoin crowdsale, in which we hope to raise at least $3.5 million to fund the creation of a manufacturing plant for synthetic zirconium dioxide (synth. ZrO2).
Zirconium is a highly in-demand material used as a refractory — it is very durable at high temperatures and pressures, which makes it ideal for use in glass-making and other such applications. Usually, the zirconium used for firebricks in kilns is extracted from the earth, at a high financial and environmental cost. These bricks are periodically replaced because they degrade under the extreme conditions to which they are subjected. Our process recovers ZrO2 from these industrial wastes, and the end result is a product that has superior properties and greater cost benefits than the natural alternative.
Our research with manufacturers and knowledge of the existing market suggests that we will be able to sell synth. ZrO2 at a price of $2,800 per tonne. Every ZrCoin sold at ICO will represent an option for 1kg ZrO2, and so will be redeemed in a later buyback at a price of $2.80. They will sell at ICO at a discount, starting at $1.40. This is how our investors will gain ROI.
Industry, investors, traders
There are three main ways in which ZrCoin might be used in the future:
1) As an option on ZrO2. Because ZrCoin is backed by a real commodity, it is possible to take physical possession of the ZrO2. We expect a number of businesses to do just this. Manufacturers who need zirconium for their factories will buy ZrCoin ahead of time, at a discount — allowing them to acquire zirconium at below market prices. This will prove an attractive choice for forward-thinking businesses who have the money to invest in their future.
2) As an investment in its own right. As a blockchain-based option, ZrCoin will be treated as an investment or speculative instrument by traders. Those who invest at ICO can expect a healthy ROI. Because ZrCoin will trade on secondary markets after the crowdsale, other investors will have access to it and may be able to pick some up at an attractive price. Due to the discount offered and the market price of ZrO2, it is likely that ZrCoin will trade between $1.40 and $2.80. However, the cryptocurrency markets are notoriously volatile, and how the coin is priced in each currency will depend on its trading pairs and the performance of those currencies against fiat (most notably BTC).
3) As a store of value. Lastly, ZrCoin is backed by a real commodity, and has a theoretical real-world value of $2.80 (depending on market conditions). It should therefore have a relatively stable price, particularly over the longer term. ZrCoin will be a way to hedge against inflation and for traders to use to park value when trading more volatile coins, such as BTC and alts.
The ZrCoin crowdsale will be held in the coming weeks. To register for updates or to find out more, visit www.ZrCoin.io.
ZrCoin Bounty Program
1. Social media campaign
Budget is 10 500 ZrCoins — it’s 0,3% of ICO result. Social media campaign is managed through service https://theviralexchange.com
You should register and connect your social media pages to this service. Then you should make some tasks as to make retweet, “like” page on facebook or subscribe Youtube channel. For this activities you earn ZrCoin tokens.
Support our project in social media networks earning ZrCoins.
2. Bounty for Translations and moderation of threads on local boards of bitcointalk.org Translation of topic — 15 ZrCoin with 1 update per week as moderation.
3. Bitcointalk.org Signature and Avatar campaign — 0,7% of ICO result
Signature campaign rules Participants need to keep the signature until the end of ICO. Duration of ICO is not more than 30 days. Start — beginning of April. Any attempt at cheating will be punished with disqualification from the campaign.
You can not advertise any other websites/threads in your signature! Any user with negative trust will not be allowed to participate.Only good quality posts and that are relevant to the thread will be counted. If we find spam posts you’re making, you will be removed from the campaign and receive no payment.Every participant needs to make at least 30 quality posts during Bounty campaign on BCT to be eligible for the bounty.
Junior Member 1 stake
Member 2 stake
Full Member 3 stake
Sr Member 4 stakes
Hero\Legendary 5 stakes
Stakes are added weekly. Only full weeks are in count towards the bounty calculation.
Avatar campaign Avatar Campaign is for members who has Full Member rank and higher. And it gives 1 Stake per week. Put BB-code into your signature and don’t change it until the end of ICO. The whole bounty pool will be divided among the participants proportionally to the amount of their stakes.
To apply participation in Signature and Avatar Campaign fill out the form: https://docs.google.com/forms/d/e/1FAIpQLSfQiIikjeOYx9Fu370ceLWfqA338hpMa41aKsSuZbuRiN4sJA/viewform
You can check your application status to Signature and Avatar Campaign here: https://docs.google.com/spreadsheets/d/1bq6DjjkHLb8aD19qqei2qLC5DR_0nQpStnHdywPE2dE/edit#gid=0
Details of Campaign read here: Bitcointalk Forum
Join to the main discussion of the project: Bitcointalk Forum ZrCoin
The ZrCoin crowdsale will be held in the coming weeks. To register for updates or to find out more, visit www.ZrCoin.io.
ZrCoin crowdsale: new dates announced
Due to new developments we have postponed our crowdsale for three weeks. Our ICO will now start on 11 May and last for one month.
It’s been a busy time for the ZrCoin team as we’ve prepared for our crowdsale. Whilst technically everything is now in place, there have been developments in the wider ZrCoin ecosystem that have made it necessary to delay the ICO. Fortunately, the reasons for this are good: we have new opportunities in the Chinese market, and want to ensure we fully leverage these.
We will be opening a new office in China in the coming weeks. As most readers will already know, China is a major global manufacturer, and demand for zirconium is high. Just as importantly, there is a strong cryptocurrency scene in China — a large amount of bitcoin mining occurs there, as well as a substantial amount of trading (albeit less than believed a few months ago, before the People’s Bank of China imposed controls on exchanges). The Chinese are also enthusiastic and creative investors and are always looking for promising new projects.
As a result of these developments, we’re holding off on our crowdsale for another three weeks so that we can make sure we can take full advantage of the new opportunities it offers. We believe that we can attract a significant amount of capital from Chinese investors, and simply cannot pass up the chance to do so if we want our groundbreaking initiative to be a success.
The crowdsale will now begin on 11 May and last for 30 days, ending on 9 June.
We hope our investors will bear with us and join us in May!
A note about ZrCoin’s ROI
ZrCoin offers ‘only’ 100% ROI. For some, this seems too good to be true. For others, it’s not enough. What’s the reality?
Every investor knows there is a balance between risk and reward. This principle is basic to all investment, and those who do not grasp this can better be described as ‘speculators’ or — more accurately — ‘gamblers’. It’s not a point of ideology; risk and return is about simple maths.
Risk and return 101
The risk/return principle applies to all investments, from the safest of assets through to the riskiest speculative plays. High-risk investments have to offer a high reward in order to make them attractive; if they do not, investors will naturally opt for alternatives that have the highest rewards for the same risk — or the lowest risk for the same rewards. In the overall marketplace of investment opportunities, this is bound to happen. (The real opportunities lie where there are misconceptions about risk, or reward. These asymmetries of information between investors who do their homework and those who do not can be highly worthwhile.)
And so it is that the safest possible opportunities offer the lowest returns. Government bonds are generally accepted to be super-safe, at least for major governments. As we’ve seen in recent months, bond yields are ultra-low; institutional investors are flocking to the safest of havens to preserve capital. Some yields have even gone negative, which is remarkable: investors are paying to hold these bonds. That reflects the fact there is little else so safe on the market. Central bank interest rates are also at rock bottom, generally around zero to one percent and even sub-zero in some countries. Retail banks similarly feature very low interest rates at present, typically a fraction of a percent. But these, too, are considered super-safe. All funds are insured. It’s low, low risk, but very low return. The maths stacks up.
Blue-chip stocks are higher risk, but the returns are greater — generally around 8 percent in the long term, after inflation. But that’s the long term, over a period of 5–10 years, and on a day-to-day and month-to-month basis, values can fluctuate significantly. That is also factored into the price.
Crypto, of course, is one of the riskiest investments out there. But the rewards can also be very high. Again, it’s just maths. Some people have been very badly burned, speculating on bitcoin — those who bought at the high of over $1,200 back in November 2013 would have seen their investment sink to around 15% of its dollar value before recovering — if they held it that long. The reality is that most would have sold and booked a heavy loss.
ICOs, too, are risky. Some collect hundreds of thousands and even millions of dollars — but for what? Some of these projects are extremely promising. Others are ill-conceived, or vapour, if not outright scams. Countless people have been burned after participating in an ICO that turned out to be run by someone who could not come up with the goods. Things are getting more professional and transparent now, but the rewards are decreasing with the risks. Anyone who was around for 2014’s ICOs will know that. You can’t assume anything will immediately go 3x or 10x with listing on an exchange nowadays.
A handful of ICO projects do extremely well. Ethereum is one. Having raised 30,000 BTC (then around $15 million) in its crowdsale, it hit a market cap of around $5 billion — a remarkable ROI. However, it was never a dead cert. There were concerns and scepticism from an early stage, about both the viability of the technology and the health of the company behind it. They proved unfounded, in the end, but the risk was surely there. Those who held through everything gained their 300x ROI because they took on that risk. They could have lost everything, but they reaped the rewards of their foresight or confidence.
Part II: ZrCoin risk and return
This is the context within which ZrCoin’s crowdsale must be seen: one of risk and return. ZrCoin will sell options for 1kg of zirconium dioxide from $1.40 each, buying them back once production has started at market rates (around $2.80). That’s an ROI of up to 100%.
Within the world of conventional investing, a 100% increase in value over the course of a year or 18 months is impossibly high. We have had people suggesting we are a scam because they say no ordinary investment can deliver this. In a world of zero and sub-zero interest rates, and 5–10% long-term returns on stocks, this is understandable. But for the crypto crowd, who are used to 300% or 1,000% returns on ICOs, it’s low — we’ve had complaints that people could make more elsewhere.
This might be true in some instances, but it fundamentally misunderstands the nature of risk and return. Crypto investors might make more elsewhere, but the higher returns come with higher risks that they will receive back less than they invested, or nothing at all. There is no certainty here or in any form of investment.
Real-world blockchain investment
ZrCoin’s ‘modest’ 100% ROI projection reflects the mathematical realities of investment risk and return. To some investors, it will seem too good to be true. To others, it appears limited. The difference is a matter of risk appetite.
Crypto investors are used to huge returns — and huge risks. Those who invested in bitcoin in its early days could not have known it would succeed; there are any number of reasons it might have failed, almost did, and still might. It’s a new and emerging technology, after all. Most mainstream investors, however, do not expect these returns — and they have a much lower tolerance for risk. It’s simply unacceptable to most investors to stand a chance of losing 50% or even all of your capital. (Imagine the news headlines if a pension fund took this kind of write down.)
Moreover, blockchain technology is now hitting the mainstream. This is where the mismatch in expectations probably lies. Blockchain technology used to be a crypto-only phenomenon: the only blockchain projects were crypto coins of one kind or another, that were launched primarily to the crypto crowd, even if they did have an eye on mass adoption (most of them unrealistically). But blockchain is more than this. It’s a toolkit that can be applied to so many more situations and ventures. That is what ZrCoin is doing.
Instead of creating a crypto-only and online-only application, we are using blockchain technology to raise funds for a real-world manufacturing use case. The risk here is not the use of blockchain technology, or the adoption of a crypto coin per se. It’s simply the — much lower — risks around the deployment of a new kind of manufacturing technology. It’s a real-world, relatively low-risk project that happens to use the blockchain as a crowdfunding mechanism. Understanding ZrCoin through the same risk-return lens as a crypto ICO is a fundamental category error.
Our manufacturing partners recognise the value of our process and product, even if the blockchain is a new way of doing things for them. The crypto world does not necessarily understand our green zirconium process, but does grasp the power of blockchain. We are one of a small but rapidly-growing number of projects that spans the gap between the crypto world and the physical industrial world. Once there are more of them, the real and crypto worlds will start to overlap more too.
For more information, visit www.ZrCoin.io. Our crowdsale starts on 11 May and will last for 30 days.
ZRCOIN ICO STARTS IN 9 HOURS
The ZrCoin crowdsale [www.ZrCoin.io] will start at 00:01 UTC on Thursday 11 May 2017 and will last for 30 days, until 23:59 UTC on Friday 9 June.
ZrCoin is crowdfunding investment for the construction of a state-of-the-art facility that will manufacture synthetic zirconium dioxide (ZrO2), a highly in-demand industrial commodity, using a new environmentally-friendly process.
The project will sell blockchain-based options (ZrCoin), each of which is backed by 1kg of zirconium, starting at $1.40 each. After production and shipping begins, options will be bought back at the market price (currently $2.80). As a token on the Waves platform, ZrCoins can be freely transferred and traded at any time.
ICO terms and bonuses can be found here: https://zrcoin.io/blogitem/7
For more information or to register for updates, visit www.ZrCoin.io.
ZrCoin — $1.8 million and counting!
A week into our crowdsale we’re closing in on the $2 million mark. We also wanted to give investors more details about how the swap for company shares will work.
ZrCoin got off to a great start and, at the time of writing, almost 1,300 investors have backed our project to the tune of over $1.8 million in total. We’re over halfway now, and are keen to keep up momentum to reach our target. If you’ve wondered about investing but haven’t yet taken the final step, please do get in touch via our Slack and we’ll be happy to answer any questions you have.
It’s also worth noting that, with BTC and many alts at historic highs, there’s the opportunity to get into a project that will not only preserve value by design, but that also offers a solid ROI. Your funds are accounted at dollar-equivalent prices at the time of deposit, so investing in ZrCoin is a good way to book some crypto profits and hedge your portfolio.
One of the questions we’ve been asked a number of times is how the future swap of ZrCoin tokens for company shares will operate. We’d like to say a little more about this now.
There is, of course, no onus on investors to swap their ZrCoin for shares. As a blockchain token, ZrCoin can be held, transferred and traded freely on Waves. We imagine that many investors from the crypto world will do just that, opting to sell their tokens during one of the coming buybacks that will ensure they see ROI. At this point, having sold their tokens, they will have exited their investment (at profit) and can use the funds for whatever they want.
However, we wanted to offer our investors more than this. We appreciate the opportunity you are giving us to launch a totally new and environmentally-friendly manufacturing process. So, for those crowdsale investors who are interested and who are willing to go through the necessary identity verification processes, we are making available shares in our company. 49% of the company will be available to swap for ZrCoins, via the Cyprus Foundation that is dealing with our finances. The percentage of our company that is ultimately owned by our crowdsale investors will depend on how many decide to redeem their ZrCoin for shares, rather than sell them in the buybacks.
In due course, when we know more about our funding, we’ll publish exact figures. But we hope you will see that this offers an attractive opportunity to ‘roll over’ your investment in ZrCoin, giving you the chance to own a piece of a unique revenue-generating company that will, we believe, be at the forefront of a green manufacturing revolution.
Thank you once again for your support!
For more information or to register for the crowdsale, please visit www.ZrCoin.io.
ZrCoin hits $3.5 million target!
We made it! A very generous investment of WAVES has pushed us over the line, meaning that our first production facility is now viable. We’re now looking ahead with confidence and hoping to collect enough funds for a second facility by the end of the crowdsale.
When things happen in the cryptocurrency world, they can happen fast. Yesterday, we passed the $2 million mark — a great milestone to reach, but still $1.5 million away from our minimum target.
Overnight, a large investment came in, equal to around $1.8 million. This single big WAVES investor more than made up the difference, with the result that our project is now viable! Whatever else comes in, we know that we now have the resources to make ZrCoin a success.
This is a strong position for us to be in with another two weeks left to go in our crowdsale. We hope and expect to see further investment before it closes on 9 June. For now, though, we want to say a big ‘thank you’ to all our investors. Due to your generosity, the future of zirconium production will never be the same again!
The future of ZrCoin
Many investors estimate the growth potential of ZrCoin at a rate of 5.5% per month, and believe that the limit of its growth is fixed at $2.80. This is a major misunderstanding.
George Danelia, one of the escrows ZrCoin ICO
5.5% per month is the payment that the company can freely make from the current forecast revenues from the factory. It is the guaranteed profit calculated on short-term investments. However, if we consider ZrCoin in the medium-term, i.e. for 1–3 years, then its growth potential can exceed even the most optimistic expectations.
The main driver of ZrCoin’s growth in value will be the exchange of the token for company shares. Since the acquisition of shares occurs only through a direct exchange of ZrCoin coins, company shares cannot be bought for money.
When will the exchange of ZrCoin tokens for company shares occur?
The exchange of ZrCoin for company shares will be performed at the most favourable time for investors — about a year after the start of factory construction, after the delivery of financial statements and an evaluation of the company, and before the closure of debt obligations to investors. Thus, investors will see the financial success of the plant, and its cost will be highly attractive based on its obligations at the time.
After the swap for shares, the company can pay off all obligations to investors by selling shares, as has happened in the case of Bitfinex, for example. This will allow the project to work 100% for the shareholders — in other words, you!
Further perspectives on ZrCoin
Considering the company’s predicted financial indicators, its capitalization can increase twice over during the first year and six times over during the second year, without any additional conditions. ZrCoin developers are planning to scale up the technology and then introduce it worldwide. With such a promising business model, there is no doubt that investors will be interested in opening new factories in various locations around the world.
The proceeds from the construction of new factories and royalties for the use of the technology can multiply the incomes of production alone many times over. In this case, a hundredfold increase or more in market cap over 3–5 years is quite possible.
Many high-tech giants have grown from small companies. Therefore, when investing in ZrCoin at this early stage, you have to evaluate the growth prospects of the company, not just the token: the price of the token when exchanged for shares may increase many, many times over.
George Danelia, one of the escrows ZrCoin project, a financial expert, ex-Vice President in Singapore Department of Morgan Stanley, with 12 years of experience in the field of trading and asset management.
ZrCoin in Russian Forbes
Our company was recently featured in Russian Forbes! You can read a translation here, or take a look at the summary below.
Conventional crowdfunding is increasing in popularity, but it still has relatively few serious use cases. Pebble is one of the exceptions — a campaign that captured public attention and collected a record $10 million on Kickstarter. At the present time, many ideas are still frivolous, humorous or somewhat shady enterprises that reward the investor with a product that is either late, rough around the edges or entirely absent, much like the entrepreneur who solicited funding in the first place.
Enter bitcoin and the blockchain — a technology that, like crowdfunding, has been associated with its fair share of scams and burned investors. But both bitcoin and blockchain have grown up, gained respectability and are entering the mainstream. The democratising impact that bitcoin offered for financial transfers is now being applied to crowdfunding, with the result that ordinary people have the chance to break down the barriers to accessing investment capital. Innovation and, in this instance, industrial production, are no longer the preserve of large corporations.
Such an opportunity arose through a meeting between two men: one a blockchain expert, the other a scientist who had helped develop a new environmentally-friendly process for manufacturing zirconium dioxide. The idea was solid, but the bottom line is till the bottom line. As fictional conman Ostap Bender’s famous quote goes, ‘Money in the morning, chairs in the evening.’ In other words: payment in advance, or no dice. The project needed investment, and accepting traditional venture capital would have involved giving up control of his business. Banks would have demanded impossible amounts of collateral. Blockchain, though, held out an intriguing and promising alternative.
And so was launched the ZrCoin ICO, or ‘initial coin offering’: a blockchain-based crowdfund that was able to access investors all over the world with minimal effort and friction, since it operated outside of the legacy banking system with its barriers and costs of transferring money. Crowdfunding the minimum of $3.5 million in bitcoins and other blockchain-based currencies turned out to be a matter of little more than days, and the total is still rising.
This money will be used to build a processing plant and launch the production of so-called synthetic zirconium, with a projected revenue stream of 70 million roubles per month. These funds will be used to purchase the blockchain tokens distributed to investors at the crowdfund, buying them back at a premium of up to 100%. If investors don’t want to wait until production starts, around 8 months after the crowdfund closes, they can sell their ZrCoins to other buyers on the open market. There is also the option to convert them to equity in the company at a later date, with the prospect of a much higher ROI.
ZrCoin isn’t the first Russian business to take this approach — ChronoBank and Kolionovo are two recent examples of successful blockchain crowdfunds. But it is the first to create a real-world manufacturing business from scratch on the back of an ICO. It does more than set a precedent: it blazes a trail. The success of ZrCoin will prove to have far greater significance than for the zirconium industry alone.
ZrCoin crowdsale ends at $7 million
A huge thank you to all our supporters over the past month. We have the funding to ensure the ZrCoin project will go ahead and are very excited about what the future holds.
The ZrCoin crowdsale has ended, and we’re pleased to report that thanks to the generosity of our investors we have collected $7 million for our project.
These funds will be used to build the first production facility for synthetic zirconium dioxide, allowing us to pioneer a totally new industrial product as well as a new financial one, in the form of a blockchain-based commodities option!
It was a challenging climate in which to raise funds, though we were helped as much as hindered by the strong bull market that has affected bitcoin and the wider cryptocurrency markets in recent weeks. In addition to cryptocurrencies, we received over $800,000 in fiat relatively early in the crowdsale, giving us a strong foundation to build on. The star performer was WAVES, though, which has appreciated from less than $1 a month ago to more than $5 now. WAVES accounts for around $3.5 million of our total investment at this point.
Overall, the campaign was a great success. We’re now looking forward to getting down to work, building the plant (our progress will be broadcast live via webcam), and ultimately starting production and shipping. At that point, we’ll start making buybacks from the market.
The immediate next step for investors is token distribution, which we will carry out shortly, after we have conducted an audit of all funds collected. Whilst it will probably be 8–9 months before buybacks begin, in the meantime, our investors will be able to transfer and trade their tokens freely on the Waves network. And remember, the buybacks are only one way to see a return on your investment. Down the line, it will be possible to exchange your ZrCoin tokens for shares in our company — something we believe will be a very worthwhile investment to make.
Many thanks once again and congratulations on becoming a part of a new economic and industrial movement!
ZrCoin Startup Raises Over 7 Million USD from 4,000 Investors at ICO to Create Zirconium Production Facility
ZrCoin, 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.
The 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 capacity.
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).
‘The 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.
‘According 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.
‘Using 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 campaign.
After 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.
Investors were able to deposit using various currencies, including bitcoin, Litecoin, Waves and Ethereum. The breakdown of funds raised is as follows:
- 838,903 USD
- 950 BTC
- 670,290 WAVES
- 12,373 LTC
- 7,407 ETH
- 27,973 ETC.
You can find more detailed information about the project at https://zrcoin.io.
The 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.
The 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.