Jim Rogers, the famous chairman of Rogers Holdings, once summed up the reason for buying commodities by joking: “The price of a commodity will never fall to zero. When you invest in commodity futures, you’re not buying a piece of paper that says you own an intangible business that can go bankrupt.
Like nothing else in the world, commodity trading offers investors the opportunity to buy and own real, tangible assets that cannot depreciate to zero. The problem for many investors is that the commodity market is extremely complex to break into and is designed to drive away the small investor and serve the big giant corporations.
In fact, the $2,000,000,000 commodities market is the very definition of centralization, with the vast majority of trading taking place in a few places around the world, with big players enjoying discounts that keep smaller investors out. This is all about to change thanks to Blockchain technology.
Blockchain and raw materials
Blockchain technology is radically changing the way commodities can be traded, thanks to a new platform called ChainTrade. ChainTrade has designed a system to move commodity derivatives trading (commodity futures and options, food, etc.) to a decentralized Blockchain.
The objective of the platform is to allow all potential clients to participate in commodity trading, whether large or small investors. As the system is decentralized, the fees charged to traders will decrease significantly and traditional commodity contracts will be replaced by better and more efficient smart contracts.
Additionally, since purchase and sale contracts are digital smart contracts, traders can actively engage from anywhere in the world with an internet connection.
The concept was born with the Blue Tiger group, a company with more than 90 employees and offices in six different countries. The group has previously invested in artificial intelligence, business and financial software and other industries. By observing the commodity market, they realized the potential of Blockchain technology.
Like nothing else in the world, Blockchain technology is able to open commodity markets to the world of small and medium investors. At the same time, ChainTrade will help provide an easy and robust way for enterprise-level traders to gain access and control.
ICO and funding
Having already received $9 million in seed funding, the company is actively carrying out its ICO. The company is looking to raise approximately $10 million in additional funds to fully complete the trading infrastructure. They have already raised more than half of these funds through the ICO.
The sale is for CTC tokens, the platform’s internal instrument. Interested investors should read the company’s detailed whitepaper to learn more.
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