The bank, and its monopoly over capital, has once again shown an example of how it is letting down budding entrepreneurs and companies, and forced people to get adventurous.
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Khokholskaya Agricultural Company is looking to the Blockchain, rather than the banks, to build up capital through an ICO to launch a fully functional dairy farm in Voronezh region of Russia.
Food production is a big deal in Russia, and in high demand, and rather than making things easier, the Agricultural company hit an impasse when they seeked a loan from the banks. In Russia, collateral is needed to take a loan, and lad a lone is not good enough.
So, sitting on 3,500 hectares of fertile farm land, the Agricultural company has decided to launch MilkCoin, an ICO that will hopefully fund a fully fledged dairy farm that will not only aid in food production, by supposedly be a profitable investment.
The power of ICOs
ICOs have been the latest trend for many small startups and technology companies, and the success stories of them as a means of raising funds cannot be ignored. The crowdfunding nature allows both parties to benefit, either as investors, or as a Blockchain company that receives capital.
Now, Khokholskaya has joined the fray out of necessity more than anything. The banks scuppered their hopes of building up a dairy farm to aid in food production, something the Russian Government is fully behind, thus they have looked elsewhere.
MilkCoin believe that because they have the history as a solid and functioning company that has been in operation since 2009, they have a little more stability than other startups who are literally launching ICOs for the tokens.
They have a clear goal to build up a farm in four stages; First, they are looking to add machinery, reconstruct the feed elevators, as well as build the animal feed mills, and then bring in the dairy cows.
They have also already procured the land, and have also secured their initiators for their ICO out of Liechtenstein, which they hold will add legitimacy to investors’ input, as well as make it reliable and secure.
Decentralized Investment opportunity
bIt is not only a bold step for the agricultural company to launch the ICO, it is a powerful investment opportunity according to the team at MilkCoin. They are now seeking investors, rather than loans, and to that end, they believe there are big dividends on the horizon.
They have already invested $10 mln of their own funds into their company and project, but they believe that there is every reason to recoup that back, while also potentially reaching annual dividends of 70 percent as well as quarterly three percent pay outs. MilkCoin are also predicting the token buyback might reach up to $1.20