ZrCoin takes the concept of “backed by gold” to a whole new level. It is the first cryptocurrency backed by a physical asset, synthetic zirconium dioxide. Zirconium dioxide is a material used in high-temperature furnaces. Therefore, as the developers of ZrCoin explain, this is an in-demand industrial material.
“Natural zirconium dioxide is used world-wide in industry as a refractory material in high-temperature furnaces. They do not last more than several weeks. They are then simply thrown out at designated disposal sites and replaced. Huge waste fields have accumulated over the years and are continually growing ” the presentation video of ZrCoin explain.
A team of Russian researchers found a way to create synthetic zirconium dioxide (synth ZrO2) out of this waste. Moreover, it is 2.5-3 times more durable and completely environment friendly, which makes it so valuable.
The ZrCoin team promises to have a processing plant for this material and to be ready to deliver it all over the world, as early as 7 months after the ICO ends. “The profits obtained will be used to repay high-interest investments. “ the video continues.
ZrCoin - the Currency
Funds collected during the ICO stage will be used for the construction of a green, ultra-modern processing plant in Russia.
The whitepaper explains in detail how much money the entire construction will entail, somewhere in the neighbourhood of 2.4 million euros. This includes the land plot on which the facility will be erected, and the actual custom-designed structure. The investors will be able to supervise the construction of the facility via webcams installed around the construction site. Later on, these cameras will be moved inside the facility, in order for the investors to track the production progress.
Their timeline for the construction of the plant is 6 months after the Initial Coin Offering ends. The production should start in the 7th month after the ICO closes.
The factory is supposed to produce around 400 tons of synth. ZrO2 per month, for an average price of 2650 euros per ton. This brings the value of one coin to 2.65 euros (since one coin is valued at one kilogram of the material). In the ICO stage, you can purchase the tokens for half the price, with US dollars, bitcoin and other cryptocurrencies.
ZrCoin is practically a means of tracking your investment in a transparent way and with no intermediaries, via the blockchain technology. This is a noteworthy rail of collecting early investments for a project that could have otherwise been listed on the traditional options market.
The company will launch the cryptocurrency on the Waves blockchain platform, under a smart contract.
Investors can participate in the project by purchasing ZrCoin, a blockchain token equivalent to one kilogram of synthetic zirconium dioxide. During the ICO stage, the currency is sold at half the value of one kilogram of the material, which guarantees a 100% profit once the production and selling cycle begins. Buyers cannot sell or transfer ZrCoins during the ICO stage, but immediately after it closes, they can sell their currency at the price they bought it for (since the company is insured for such cases).
Once production starts, the producers of zirconium dioxide themselves will be able to buy back the coins emitted during the ICO stage, at the market price of 1kg of synth. ZrO2 “in amounts of at least $400,000 per month, no later than 8 months from the end of the crowdsale. Investors also have the option of taking physical delivery of the product.”
It is important to note that ZrCoin has four trusted escrows from three different countries – Alexander Rubin, founder of Glenwood Capital, Sasha Ivanov – founder and CEO of Waves, Vladimir Perepelitsyn – doctor in geology and mineralogy and George Danelyia, ex-vicepresident of Morgan Stanley, Singapore dpt.