Hong Kong Startup Launches Blockchain Cryptocurrency for Shipping Security
A Hong Kong startup aims to fundamentally change the container shipping industry by the creation of a cryptocurrency called TEU.
300cubits, a blockchain initiative, is distributing the TEU on the Ethereum network and says it will be tradable on various cryptocurrency exchanges globally.
At first, the TEU tokens will be used as booking deposits for container shipping, solving a problem of shipper no-shows or carrier no-loads. “We believe a booking deposit in the form of cryptocurrency is the solution to one of the biggest pain points in the container shipping industry – trust or the lack of,” says a white paper released by the company.
As booking deposits, the TEU’s value will be linked to the value of actual freight rates. The company believes that trading in TEU tokens will become a leading indicator for freight rates, “serving as much like a peer-to-peer crowd prediction platform for container shipping industry.”
In the longer term, 300cubits sees the TEU being adopted as a settlement currency for the container shipping industry, which could take the entire industry’s transactions to the blockchain.
On an even higher level, “the introduction of the TEU tokens will be a paradigm shift for the container shipping industry,” says the paper. “Unlike other solutions that may improve an area of container shipping transactions or operations, the TEU tokens will eventually change how all transactions are conducted.”
300cubits believes the TEU will add value to the industry, like a capital injection. A certain percentage of the tokens will be distributed for free to container liners and shippers. “A successful Initial Token Sale will automatically monetarize the TEU tokens,” the company claims. “Use of the TEU tokens by industry players will validate and enhance the value of the TEU tokens. The adoption of the TEU tokens in the container shipping industry, in return, will influence its trading activities at cryptocurrency exchanges.”