The latest in the ICO offerings, Lescoin – a woodcoin – is backed by a group of Russian timber companies. They want to expand the production into an area at the border with China, the main importers of Russian wood along with Japan. For developing at least one production enterprise it is necessary to raise at least $7 mln.
And they want to tokenize their business to raise liquidity.
“Our offer is mainly for investors who would like to diversify their portfolio, said the project founder Ivan Gridin. “We are planning to make the very first ICO on the government-backed platform. Despite the the negotiations are on the way, our investors can be sure that tokens they buying are secure and backed with real commodity, not only pixels”.
The Pre-ICO will close on November, 10. The main ICO will take place in November-December 2017. After the crowdsale, the Lescoin owners can either get the wood or receive the dividends from selling lumber to China. 1 Lescoin is equivalent 1 cubic meter of wood. Processed into lumber it costs up to $200 in the Chinese market.
The company offers generous bonuses to early investors: 50% during pre-ICO
Seeing the production is in the Far East which will become Russia’s free investment zone where crypto-trading will be legalized, there would be no need to release the token on the “official” exchange in order to pass under the free investment regulation, according the the team.
Investment opportunities in the Russian timber industry
Russia’s timber industry is on the rise as the global demand for wood is growing. In 2016, China alone increased the wood import from Russia by 36%. The Russian government facilitated the trade development by reducing export duties. However, the industry suffers the capital deficit and wear of the industrial base. Russian companies strive to modernize the production.
Russia’s rich forest resources are concentrated in West Siberia and the Far East, known for their vast undeveloped territory. The lack of transport and wood-processing infrastructure there hinders the development of the industry. Suffering the economic sanctions, the Russian business has no easy access to foreign capital. The crypto-market becomes a new promising option.