Jim Rogers, the famous chairman of Rogers Holdings, once summarized the reason for buying commodities when he famously quipped, “The price of a commodity will never go to zero. When you invest in commodities futures, you’re not buying a piece of paper that says you own an intangible piece of company that can go bankrupt.”
Like nothing else in the world, commodities trading offers investors the chance to buy and own real, tangible assets which cannot depreciate to zero. The problem for many investors is that the commodities market is wildly complex to enter and is designed to keep out the small-time investor and serve the large corporate giants.
In fact, the $2 tln commodities market is the definition of centralized, with the vast majority of trading taking place in a few places in the world, with big players receiving discounts that make small investors unable to enter. This is all about to change through Blockchain technology.
Blockchain and commodities
Blockchain technology is radically changing the way that commodities can be traded, through a new platform called ChainTrade. ChainTrade has designed a system to shift the commodity derivatives exchanges (futures and options on raw materials, food, etc) onto a decentralized Blockchain.
The goal of the platform is to allow all potential customers to participate in commodities trading, whether large or small investors. Because the system is decentralized, fees charged to traders will decrease dramatically, and the traditional commodities contracts will be replaced with better and more efficient smart contracts.
Further, because the contracts for buying and selling are digital smart contracts, traders can actively engage from anywhere around the world with an Internet connection.
The concept originated with the Blue Tiger group, a firm with 90+ employees and offices in six different countries. The group has already invested in artificial intelligence, enterprise and financial software, and other industries. As they watched the commodities market, they realized the potential for Blockchain technology.
Like nothing else in the world, Blockchain technology is able to open commodities markets to the world of small to mid-size investors. At the same time, ChainTrade will help to provide a simple and robust way for enterprise-level traders to have access and control.
ICO and financing
Having already received $9 mln in seed funding, the company is actively conducting their ICO. The company is seeking to raise approximately $10 mln additional funds in order to fully complete the infrastructure for trading. They have already raised more than half of those funds via the ICO.
The sale is for CTC tokens, the internal instrument within the platform. Interested investors should read the company’s detailed white paper in order to find out more.
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