Blockchain shipping tech firm CargoX raises $7mn in seven minutes in Initial Coin Offering

The shipping technology start-up, CargoX, has raised $7mn in just seven minutes for its blockchain-based Bill of Lading platform.

Its Initial Coin Offering (ICO) was met with overwhelming support from micro-investors, and puts the company “on the fast track to disrupt the global logistics industry”, according to its CEO Stefan Kukman.

CargoX says it is building a blockchained Smart Bill of Lading solution to offer low-cost, safe and reliable transport of this value-carrying document, featuring securely integrated financial services and cryptocurrency payments for the entire logistics industry.

In a statement, the company claimed its blockchain-based Smart B/L that will replace outdated Bill of Lading paperwork. “International container shipping remains one of the least modernised sub-sectors,” it added.

“CargoX’s blockchainbased Smart B/L solution introduces the most advanced data sharing and encryption methods, boosting supply-chain security, while also eliminating billions in waste and environmental impact.”

It went on to say that its Smart Bill, the logistics industry could save up to $5bn a year and cutyup to 10 days off the time it takes to transport documents between shippers and receivers. CargoX’s solution is being built on top of the Ethereum blockchain platform. 

SEE ALSO:

• Beyond cryptocurrency: Eight alternative uses of blockchain

• Comment: Now, more than ever, it’s time for procurement to go digital

• The supply chain technologies that will solidify the digital supply chain in 2018

• Read the February issue of Supply Chain Digital here

By the end of Q2 CargoX will offer shippers and a global network of logistics companies access to the blockchain-based Smart B/L, allowing them to transfer bill of lading ownership in a secure and nearly real-time manner.

And, the company claims, Later this year, CargoX will enhance Smart B/L with a blockchain-based payments system that will allow users to transfer money in accordance with their smart contracts, immediately releasing payment when the buyer receives the goods (or vice versa).

This peer-to-peer accountability eliminates the need for banks and current letter of credit (L/C) procedures such as escrows, saving billions of dollars in outstanding payments at any given time and allowing companies to recoup their money instantly.

“CargoX was overwhelmed with demand for our CXO Tokens from over 10,000 contributors representing 95 different countries,” said Kukman.  

“While we had to stop the sale after the first 2,000 investors because we met our preset funding goals, there are thousands more looking to invest and that number is growing every day. That sort of enthusiasm reaffirms the viability of CargoX’s ecosystem, and we’re harnessing this momentum to revolutionise the way that supply chains operate.”