300 Cubits has introduced a new industry-specific cryptocurrency, called TEU, that can be used as a deposit for shipment bookings. The move will bring serious changes to the container shipping industry and eventually transform the way all transactions are conducted.
The startup is preparing to start an Initial Coin Offering (ICO) campaign later this month. The investments will mainly be used to build the TEU Ecosystem to make the tokens marketable in the shipping industry.
Overall, 40% of TEU tokens will be distributed during the two upcoming crowdsales. The first sale will start on August 16 and will continue until September 20. A percentage of TEUs will be given out for free to a selected group of container liners and their customers to promote the adoption of tokens, while 6% will be given to the founding team. Besides, the tokens will be available on all the digital currency exchanges, allowing users to acquire and sell TEUs around the globe via these exchanges.
The introduction of new tokens is expected to reduce carrier overbooking and no-shows, which result in $23 billion extra costs each year. According to the startup, once the tokens are used to book shipment their value could be lost if a customer fails to turn up with cargo or a carrier does not load the cargo.
The solution, the startup expects, will address major issues in the container shipping industry, such as the lack of trust. Once the TEU tokens are transferred, the transaction cannot be changed by any party due to the use of the smart contracts technology.
“300cubits uses Ethereum to tackle problems in container shipping,” said 300 Cubits co-founder, Jonathan Lee. “The container shipping industry is a $150 billion industry, but it has been in constant distress since 2008. Unlike ticket booking in airlines, customers in container shipping do not bear any consequences for not showing up for bookings. Industry people complain about the lack of trust between liners and customers. We think the trust-free nature of Ethereum.”
300 Cubits does not offer the space for where carriers and shippers to transact, like the New York Shipping Exchange, an online portal through which carrier cargo space can be booked and which also controls whether the booking is fulfilled by shipper and carrier. Instead, it only provides the means of transaction.
300 Cubits expects the TEU tokens will become a defacto settlement virtual currency in the industry, like the US dollars. “We believe the TEU tokens are what the industry needs to ensure shipment agreements get honored, use crowd wisdom for more accurate forecasts or hedge against the unpredictable cyclicality,” the startup said.