MilkCoin ICO Report - Cryptocurrency-based Cow Factory Dividends
Standard ICO Report Structure:
- Part 1: ICO Analysis (What is it about? What is the ICO intending to do? Describe what the platform is.)
- Part 2: CROWDSALE ANALYSIS – DETAILS & TOKEN SUPPLY
- Part 3: Useful Links (Further Research)
Part 1: ICO Analysis -
Georgiy Gradov and his colleagues of the Kokholskaya Agricultural Company are looking to crowdfund a niche industry – commercial dairy farms in the Voronezh region (Russian Federation).
Georgiy Gradov and Co. provide a comprehensive overview of what their plans contain and do not seem to overpromise. Stating there is a dire shortage of dairy supply in the country and region as a whole.
ICO Crowdfunding -
The Kokholskaya Agricultural Company has branded themselves as mavericks in raising funds for a traditional business via ICO. They seek the benefits an ICO, which in the form of decentralization will lead to more autonomy for the team, rendering them free from pressures of state actors and other conglomerates.
However, the whitepaper argues that the project, despite being introduced in almost anti-establishment light, is solving a very relevant pain in the industry and has been a Priority Project of the Russian Federation since 2015, and has passed all approval stages with regard to Russian authorities.
A Priority Project renders them a whole list of subsidies, such as farm machinery (15%), animals (65 roubles per kg), milk (1.60 roubles per litre), and much more. These subsidies are listed in the whitepaper.
The whitepaper further cites economic woes as a primary reason for doing the ICO. It has lead to banks refusing to offer collateral-free loans. Kokholskaya’s vast ownership of assets (3500 hectares of land and buildings) do not qualify as collateral.
— MilkCoin (@MilkCoinICO) October 28, 2020
A Derivative Financial Instrument
The team has made it clear from the start of the whitepaper that MilkCoin is not going to be a utility token. Investors of the MilkCoin Derivative have contractual rights to a buy-sell back in the future. In this case, the company will issue a buy-back after 3 years at up to $1.20 per token, at a rate of 10% of the total supply a year.
Investors also have the right to annual and quarterly dividends. In short, MilkCoin acts as an alternative investment vehicle, instead of a true cryptocurrency.
This is where the Kokholskaya Agricultural Company differs from many other ICOs. Although the team provides a whitepaper on their website, it is designed to offer a simple and succinct explanation of the reasoning behind the project and the framework in which it will operate by.
There is, however, a 100 page business plan that includes some detailed analysis into the commodity in question (milk and cattle meat, how compositions matter and the various licensing required), a market analysis of milk and meat, the organization’s marketing strategy and operational plan, the environmental impact of the project and even financial projections and risks.
It even includes the CVs of the team. Needless to say, this is not something very commonly seen in ICOs - where more often than not an investor is directed to a 2 paged whitepaper. Perhaps the team felt that an astonishing proposition needed to be bolstered so much more in order to attract investors.
I just published “Introducing MilkCoin: An ambitious agricultural project in the industrial hub of Central Russia” https://t.co/XomKqN2DGJ
— MilkCoin (@MilkCoinICO) October 27, 2020
Part 2: Crowdsale Analysis – Details & Token Supply
Total token supply: 120 million
Token type: MilkCoin
Token Distribution/Crowd Distribution:
Outlined in fiat according to stages the fundraising is able to hit, detailed cost description is available on the website
- Objective 1 ($5.7 million) - Cultivation of all land plots, machinery purchase and repair-shop reconstruction
- Objective 2 ($17.6 million) - Elevator reconstruction, includes infrastructure development
- Objective 3 ($21.4 million) - Formula-feed plant construction
- Objective 4 ($76 million) - Construction of a closed milk processing complex
Presale Phase: None. Team invests own funds for land and buildings.
ICO Sale Phase: November 15 2017 – December 15 2017
Token Price: 1 MilkCoin for $0.1-$1 USD at various stages specified in the whitepaper
Team Overview - Members & Advisors
Georgiy Gradov, Co-owner
Moscow State University of International Relations. The Higher School of Economics. Entepreneur in the wholesale/retail sphere. MilkCoin ideological inspirer.
Mikhail Vidgofv, Project Manager
The Higher School of Economics. Worked for Moscow government as a construction - project manager.
Sergey Diominskiy, Agricultual Department Chief
Argicultural specialist, Sergey has 20 years of experience in the field of agricultural development. Has been wotking in “Kokholskaya Agricultural Company” since 2009.
Vladislav Savin, Chief Officer
Voronezh State University (graduated 1998). Has been working in “Kokholskaya Agricultural Company” since 2009.
Part 3: Useful Links (Further Research)
Business Plan: https://milkcoin.io/docs/Business-plan-EN.pdf
Georgiy Gradov’s Facebook and Telegram handle: @gradovgv