The problem 300cubits present is simple: the container shipping industry is losing money. They provide reasons for this including: “lack of trust between customers and container”, and “inability of the industry to hedge the industry cyclically”. Exactly what this means is explained in their whitepaper, and upon verifying with independent research, it appears that the problem is even more complicated: there are too many container ships worldwide and not enough cargo. This has left many companies increasing cooperation and co-storage to try to fill up their supply, but also overbooking and then having to turn down customers at times. Market freight rates also fluctuate rapidly, and contracts are often dishonored or re-opened. This creates the lack of trust and accountability.
Their solution: 300cubits will issue its own cryptocurrency – the TEU – which will become the standard unit of a shipping container, and create greater trust between customers and container liners. The TEU ecosystem will include:
1) Smart contracts (buildable without coding knowledge)
2) Booking – customers make shipping booking using TEU as currency
3) Marketplace – unused bookings can be traded for TEU tokens. TEU tokens can be traded for fiat or ETH.
4) Positive credit agency – a rating system
One way this could help the shipping industry is through booking deposits. Right now, the shipping industry is not like airlines or other methods of transport (cargo, people or otherwise), in that there is no consequence for booking and not showing up. This is one aspect of what leads to underbooked cargo ships. On the other hand, liners are like airlines in that some overbook, and then leave customer cargo unloaded. A deposit could create more accountability on both sides.
The credit agency (4) ties into the 300cubits solution as well, allowing the rating of these liners and creating a consumer-centric market, much like other revolutionized rental industries (AirBNB, Turo, Uber, etc).
Purpose of coin: The TEU (comes from the industry acronym for Twenty-foot equivalent unit) would be used by both parties – customer and container liners. It will create accountability, because both parties will be effectively putting up TEU coins as collateral / deposit. If the customer doesn’t bring the cargo, or the liner doesn’t load the cargo, the other party will get all the tokens, effectively still getting paid.
Initially, a certain percentage of TEU tokens will be given out for free to container liners and their customers, as an attempt at capital injection. Ultimately, the TEU will rise and fall with freight rates. This will eliminate the need to reopen contracts, and also makes a case for why this coin should be adopted, and not an already developed crypto like ETH or BTC. Long term – the company’s whitepaper states that the entire industry’s transactions will be converted to TEU.
- contribution cap of 14,000 ETH, TEU pool supply of 2,000,000 TEU.
- Minimum conversion rate = 143 TEU per 1 ETH
- Price per TEU in US = $2.71 (August 31, 2017 ETH price of $388.04)
ITS (18%): November 2017 (tentative): contribution cap not released.
Second Token Sale (20%): early 2018: contribution cap not released.
TEU tokens will cost as high as $2.71 per token at pre-ICO, if all TEU are sold. This would be higher than average, as the highest price per token from an ICO in the top 16 best ICOs of all time cost under $1.60 per token. However, the TEU price will be determined on a free market valuation methodology and may be lower..
ICO Market Cap
Difficult to evaluate at this time. Using maximum pre-ICO price of $2.71 for all released tokens = 271 million. This would higher than average. The highest market cap of the ‘top 16 best performing ICOs of all-time list’ is ~$150 million (Ian Ballina). However, this 271 million valuation is a very rough estimate.
Upside potential: Estimated $23 billion lost to the industry inefficiencies. Video here. The global industry is estimated (by 300cubits) to need 12 million TEU to be covered by TEU tokens, if the tokens are used for every single booking. Current rate for TEU is $750-800 blended average. With 40,000,000 tokens released to the public, this would amount to $225-$240 per TEU token. With all 100 million TEUs released, this would amount to $90-$96.
Comparison to competitors: No obvious direct competitor companies in this space as of August 2017. There is a collaboration between Maersk and IBM to use blockchain to network the shipping industry across borders. Read more
*Disclosure – At the time of writing, Cryptorated staff owned no 300Cubits tokens.
Interested in deeper analysis 300Cubits?
Extensive experience in container shipping industry, and financial industries. Has worked for Maersk Line on eCommerce, Hutchison Port Holdings as an Investment Manager, and was then the regional shipping analyst at JP Morgan, and senior shipping analyst for Tufton Oceanic. Notable in his educational background is an INSEAD MBA in Corporate Finance. View his LinkedIn here. He does list 300cubits on his LinkedIn. It doesn’t appear he has any prior experience in blockchain.
Banking and finance expert, versed in fiat currencies, programming and system/organization build-up. Set up treasury bank functions of Hong Kong banks, and has worked in executive positions for a long list of finance companies, including JP Morgan and many other Chinese commercial and private banks. He is proficient in programming languages such as Solidity, Visual basic, SQL, Python. LinkedIn here.
Also worked in the financial industry. No LinkedIn.
|Token Sale Dates||
Pre-ITS (2%): August 16 – September 20, 2017
Second Token Sale (20%): early 2018
14,000 ETH (pre-ICO)
|Technical White Paper||
No code yet available on their GitHub
NO – modules of Ecosystem to be developed as web DAPPs – outlined in whitepaper. Set of smart contracts coded in Solidity, being tested in testnet (as of Aug. 2017)
Booking fees / deposits in the TEU Ecosystem. Tokens are returned to the original owner (ie the customer and the liner) if both parties follow through.