Remechain has announced the development of the decentralized marketplace for fast and secure trading of scrap metals. Built on the blockchain technology, the platform wants to build a standardized global scrap market by uniting buyers and sellers on a safe and transparent platform.
The global volume of turnover of scrap now totals more than 560 million tons per year and this number will only grow in the near future. In 2016, the world trade volume exceeded $106 billion. However, the market still has a lot of problems, such as inflated logistics costs, procedural barriers for deal-making, and widespread fraud, that cost market participants millions of dollars each year.
Unlike traditional intermediaries, Remechain provides much more data and services to support traders and uses smart contracts to guarantee an advanced transparency of partnerships. The company will eliminate the involvement of third parties, thus minimizing costs of scrap metals trading. Besides, by reducing the number of intermediaries and transactions, it will minimize environmental impact of the mining industry.
The platform will allow users to track of demand and supply for different types of scrap metal in real-time, choose hundreds of counterparties and implement safe transactions based on smart contracts technology.
Remechain is led by Ivan Myasoedov, a successful Russian businessman who has already launched and managed three scarp market-related companies. The project has already received support from a few private and strategic investors, who invested $130,000 in the platform development.
Yesterday, Remechain launched a pre-ICO that will continue until November 25. The company plans to sell 600,000 with a special bonus of 20%. On January 25, it will start an ICO that will run for a month until February 25. Overall, $6 million tokens will be available during the crowdsale.
The funds raised in an ICO will be dedicated for further development, release and promotion of the service across emerging markets in Russia, Turkey, and Germany. By 2020, Remechain also plans to launch the platform in Asia and Africa and will incorporate legislative and tax standards to ensure barrier-free international trade. Within the three-year period, the turnover on the platform is expected to reach $982 million.
Under the company’s business model, the income is generated from a 1% commission charged for each deal concluded on the platform. Half of the revenues will be divided between token owners in the form of dividends. The distribution of income will begin on July, 2018, with the first distribution amounting to $800,000, according to Remechain estimates.
The beta launch of the service is set for May 2018.