BioCoin: Blockchain Based Loyalty Platform for Green Businesses Aims to Disrupt the Wild ICO Market
BioCoin aims to set the standard for other cryptocurrency projects in an industry which is largely unregulated.
So far, 2018 has been marked by a severe recession in the cryptocurrency market despite no visible breakdowns in the industry’s continuing overall steady development. Many believe that market’s behaviour can be explained to a great extent, not by macroeconomic factors, but by psychological ones.
2017 was the year of chaotic market growth and ICO fever. Veteran investors are quickly getting discontent with the market’s old rules (or rather the lack thereof). In a free-for-all market most experienced players are no longer willing to shoulder the financial burdens without any sort of guarantees. Investors increasingly seek projects resistant to speculation and rampant volatility, cryptocurrencies backed by a real breathing economy and thousands of customers.
In Russia this niche is currently being occupied by BioCoin, a loyalty platform for green businesses.
The “new paradigm” is getting old
Blockchain technology disrupts the old business models, decentralises the market and ultimately grants people economic freedom. But are people willing to forego basic security in pursuit of crypto-anarchist ideals?
In 2017 the market was flooded by Ponzi schemes and scam ICOs. Tokens that were not backed by real concrete value often swiftly became playthings for pumpers. But as the market matures so do its core players who are no longer willing to flush their money down the drain.
It is clear by now that there are in fact reasonable predictors of a crypto-project’s stability. Perhaps among the most self-evident ones are the project showing a thriving economic ecosystem and the team being open about the project’s status (technical, financial, legal, etc.)
Legal status is becoming increasingly important as SEC moved in with a heavy-handed regulatory initiative and many important world economies followed suit. But can a blockchain-based project retain all the benefits granted by the technology while being absolutely compliant with the local laws?
We know today that it is in fact possible as there is a slew of crypto tokens seen as legal by the regulators. To illustrate the trend BioCoin can be used as a good case study. A project which manages to thrive despite the apparent cooling toward crypto observed among Russian leadership.
The next new paradigm is here
The idea behind BioCoin is simple. Being basically a blockchain-based loyalty platform it is specifically designed to help eco farmers and other green businesses build strong local and global communities through a system of bonuses and discounts processed on blockchain. Apart from that it offers a slew of other services, like loans for starting farmers.
The platform was devised and built by a large independent cooperative of farmers LavkaLavka, which became the foundation of this new ecosystem. Today they are backed by thousands of consumers, retailers and farmers In Russia, Western Europe and Northern America.
For a while LavkaLavka has been accepting Bitcoin as a means of payment for various farmer products and has done it absolutely legally. There have been a number of investigations launched against them by Russian officials which all ultimately just confirmed there was no foul play involved.
BioCoin was announced to be the first legal token in Russia and its ICO was monitored by the officials and found compliant with all local laws. Indeed, BioCoin held an unusual ICO by the old industry’s standards. Tokens were actually minted and successfully used within the LavkaLavka ecosystem way before the ICO launched, thus making sure BioCoins (BIO) can not be marketed as securities or a speculative instrument. Instead, buying BioCoins instantly includes the investor into a living and functioning economy, where capitalisation grows thanks to manufacturers and customers, rather than market speculations.
This coincidentally marks the second stability factor - a thriving economy, partly based upon a large tightly-knit community familiar with cryptocurrencies, and partly built from scratch via strategic partnerships with companies from all around the globe. For example, the loan processing mechanism was developed in cooperation with a successful South American crypto-project RCN network. While through partnerships with Bitwallet and Robokassa, one of the largest online payment aggregators in Eastern europe, BioCoin hopes to extend its reach to tens of thousands businesses who are not yet a part of the loyalty program.
BioCoin ICO ends February 18 and already the team reports astounding success. Within months the platform attracted a whopping $16 mln and set a new standard for holding a legally compliant ICO. Time will tell whether this standard will see global adoption.