Revolutionizing Commodities Through Blockchain
ChainTrade Splitting Its Business Into Two Great Businesses
As you know, ChainTrade’s vision is to bring more efficiency , security and fairness in the trade of commodities. The company aims at being one of the leading blockchain platform for the trade of commodities
Based on its proprietary technology, ChainTrade has been developing two products.
The first product, ChainTrade Derivatives, started about a year ago, aims at becoming the world’s first licensed blockchain Exchange for commodity derivatives, allowing players to hedge at low cost their positions on products for which no derivatives exist today. This is a pure financial service. The link to our vision of fairness and competitiveness is not as clear as for the second product.
The second product, ChainTrade Physical, started towards the end of 2017 and a lot of meetings with professionals from the commodity industry. It is an infrastructure dedicated to physical commodity players, aiming at decreasing their costs and increasing their productivity, making pricing, trade finance, and execution faster, cheaper and more secure. This product will also bring trust in a new way, allowing governments and organisations to issue tender offers handled by smart contracts instead of humans, therefore impossible to corrupt.
Over the past few months, our team has made good progress on developing this part of the business, talking to brokers and various commodity players in several countries, especially in Eastern Europe and Africa. We have had discussions to launch pilots on the ground, which will allow us to proof-test and fine-tune our blockchain technology with real use cases.
At the same time, ChainTrade’s team has been working on the Exchange technology. As a first application of it, it has focused on building a new, innovative Exchange of cryptocurrencies and blockchain assets. This new project is called Nebula Exchange (https://nebula.exchange/) and is starting to gain momentum already. The main differentiator of Nebula Exchange is its focus on community (providing a unique coin review system), as well as its plan to list security tokens in the future.
Over time it became increasingly clear that it would make sense to review our company structure to be in line with our business strategy and product offering. While Nebula embeds the objective of building an Exchange, previously carried by ChainTrade Derivatives, ChainTrade Physical is encompassing our vision to solve some of the issues linked to trade documents, trade finance and delivery tracking.
Here is therefore the new company structure that we decided to implement:
- ChainTrade Derivatives will become Nebula Exchange
- The ChainTrade brand will now refer to the physical trade of commodities only, where blockchain can bring the most benefits and were our vision can be fulfilled best
Logically, since the ChainTrade Token (CTT) was built for the Exchange part of ChainTrade, we propose the conversion of all CTT into Nebula Tokens (NBT). More details on the upcoming Nebula Token will be provided in a separate post, but in a few words:
- Supply of NBT will be 100 million (up to 42 million will come from CTT conversion and about 40 million will be sold in an ICO)
- NBT to be used on Nebula Exchange to pay for trading fees (optional but granting 50% discount) and for listing fees (mandatory)
- Every quarter Nebula Exchange will use 25% of its profits to buy back Nebula Tokens and destroy them
For CTT holders who would rather continue the adventure with ChainTrade and the business of commodities, we are willing to offer an alternate option. ChainTrade is currently preparing a financing round in equity, with the aim to bring strategic investors aboard. Pending validation of the legal feasibility in each individual situation (country by country), CTT holders will be able to participate in this new round of financing to receive actual equity of the company, and CTT will be accepted as a means of payment for this equity. And the nice thing about it is that we plan to take advantage of a new law in France, allowing companies to issue their shares on the Blockchain. ChainTrade’s equity will therefore be materialized by tokens! The swap will be made very easy.
In summary, CTT holders have a choice between two great alternatives: either get ChainTrade Equity Tokens, or get Nebula Tokens 🙂
More news will be communicated in March. In the meantime, feel free to share your comments and feedback with us!