Under the leadership of startup guru and former investment banker Vincent Jacques, ChainTrade seeks to use the blockchain to revolutionize the international commodities marketplace. Let’s now discuss how blockchain disrupts the commodity market of $2-trillion.
5 December, ChainTrade – For many investors looking to expand and diversify their portfolios, the commodities market seems at first blush an obvious choice. With a total trade value of over $2 trillion USD per annum, there is a very real-world comfort to the exchange of tangible items like food and oil that billions of consumers must use every day.
And in fact, the value of commodities over stocks and bonds has been emphasized for decades by investors. Rogers Holdings chairman, Jim Rogers, famously said:
“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 a company that can go bankrupt.”
How Blockchain Disrupts the Commodity Market of $2-trillion
For many investors, however, the commodities exchange market is completely out of reach. A small handful of enormous, centralized exchanges sit astride the market, commanding exorbitant fees and excluding all but the largest players. It is a market ripe for an upset in a world that is rapidly modernizing. Perhaps the best way to revolutionize this space is through the blockchain. A relatively new technology, blockchain-based smart contracts eliminate much of the friction and reduce barriers to entry.
As companies like ChainTrade leap to the blockchain for solutions to problems like these, other benefits are becoming apparent as well. For Vincent Jacques, CEO of ChainTrade, it was more than just an investment opportunity:
“As technology reduces barriers across the world, it seemed odd to me that such lucrative trading markets remained totally closed off to smaller investors. My goal with founding ChainTrade was to create an environment where anybody, from giant multinational corporations like ExxonMobil, all the way down to individuals with $100, can play on equal footing.”
ChainTrade expects to reduce fees for traders, investors, and sellers
In fact, ChainTrade expects to reduce fees for traders, investors, and sellers of commodities by more than 50%. That is because the blockchain brings with it more than an equal opportunity: it is also vastly more efficient than older methods of commodity trading.
This is due to the very structure of the blockchain, upon which the ChainTrade platform is built. As a massive, public ledger, the blockchain operates transparently. A completely decentralized peer-to-peer exchange, it is faster and safer than traditional exchanges, without the layers of middlemen who each take a cut.
Industry Feedback on ChainTrade
The idea has received some excitement in the media. The Huffington Post calls the concept, “a powerful way for more people to enter the market with less fees and quicker transactions.”
Forbes argues that Chaintrade is, “using blockchain to revolutionize the trade of food and raw materials.”
And Coinspeaker argues that ChainTrade is a “welcome and affordable change.”
Creating a system that is no longer restrictively burdened with minimum amounts or high fees looks promising for many, but ChainTrade still faces challenges – namely, encouraging companies and investors to buy into their system.
Mr. Jacques has been actively approaching investors of all sizes. He says:
“We have been working extremely hard to present ChainTrade to retail and institutional investors in Europe and Asia for months now, and we are very gratified with the level of response we have received. Particularly of interest to our investors is our robust group of advisors, which includes people like Jacques Putzeys, former CEO and co-founder of Nasdaq Europe.”
So far, ChainTrade’s parent company has received over $9 million in funding, and ChainTrade is looking to raise $10 million more through their ICO. Those funds will be used to help complete a working prototype of the trading platform, which will be launched in July 2018.
ChainTrade is a Singaporean startup part of the Blue Tiger group, a fast growing company founded in 2009 and now counting 90 employees in 6 countries.
Interested investors can visit ChainTrade.net, where they can view the Investor Deck and the Whitepaper. Tokens can be purchased directly from here until December 16, after which public trading of the tokens on EtherDelta and other exchanges will begin.