Bitcoin, that made people learn about the world of virtual currencies, Blockchain, ICOs are, might be trading in red, but despite that each day we continue learning about new cryptocurrencies and blockchain-based solutions. This time it is BananaCoin that is grabbing eyeballs. And the most facinating thing about BananaCoin is that it is not a cryptocurrency, but a “token” or initial coin offereing (ICO) to be utilised in the production of organic bananas.
In accordance with BananaCoin’s site, it is model of crowdfunding which allows us to issue digital tokens in exchange for investments. BananaCoin, that is called an “organic token”, could be purchased using Ethereum and Bitcoin, and the cost of one token is tied to the price of 1 kilograms of bananas in the global industry. This garnered responses from people on micro-blogging site Twitter when a picture of its advertising from a cryptocurrency conference went viral.
Method In madness?
BananaCoin tokens represent usefulness tokens in the form of a contract for the purchase of goods to be produced in the future. The cost of the first million BCO is 0.25 US dollars each token. The price of one token on the primary event is 0.5 US dollars. The BananaCoin staff is planning to increase the production area to 1,000 hectares in Vientiane province, Laos, and for them, this is a way of crowdsourcing fund utilizing ICO. Every token gives its owner the right to receive profit based on the announced conditions. Contrary to other cryptocurrencies, its creators aren’t anonymous, and therefore are the owners of the real banana plantation.
What is ICO?
An initial coin offering (ICO) is a means of crowdfunding centred around cryptocurrency. Within an ICO, some quantity of this crowdfunded cryptocurrency is preallocated to investors in the kind of “tokens,” in exchange for lawful tender or alternative cryptocurrencies like Bitcoin or even Ethereum. These tokens become operational units of money if or if the ICO’s financing goal is met and the project starts. On the other hand, the US Securities and Exchange Commission (SEC) has warned investors to beware of scammers using ICOs to implement “pump and dump” schemes.
Benefits of this Bananacoin BCO Project
- Considering that BCO tokens are integrated to tokenized pockets, they may be used from the stock markets and other programs in the future. This enhances advantage.
- BCO tokens are based on Ethereum, a respectable blockchain platform.
- As a result of its simplicity, the Bananacoin platform is understandable to people who are green in blockchain and cryptography.
- The tokens are directly connected to the commodity (bananas), eliminating the need for intermediaries such as financial institutions.
- Over time, the price of bananas was on a steady growth. Therefore, the BCO token is immune to inflation, unlike fiat currencies which are normally influenced by the volatility of world’s economy.
- As is customary with blockchain-based platforms, all transactions between BCO token will be transparent and accessible to all traders.