PeatCoin is a novel ICO that is seeking investors for a current peat mining license opening up 20 million cubic meters for extraction from the Сhistoye peat deposits, not far north of Yekaterinberg, Russia. The company has the possibility to expand reserves to 80 million m³ over the medium term.
Operating on a 25-year license, the company’s operations lifted 150 m³ of peat in 2017, generating revenue of $3.7 million and a net profit of $2 million. In its utility token offering, the company is employing a blockchain-based, novel approach towards investors to fund operations going forward.
PeatCoin (PTN) can be exchanged for raw product at the rate of 10 PTN for 1 m³ of peat immediately post the ICO. Chistoye is the most easterly deposit with substantial unmined peat reserves, making the company’s produce attractive to buyers in the Middle Eastern and Southeast Asian markets. Existing clients include customers in Iran and China.
Key Points Regarding PeatCoin (PTN Token)
- Early investors have an unambiguous option on profit fixing
- PTN guarantees the buy-back of tokens at market value, not below $1.60 per token, within five years
- Hard Cap: $10,000,000
- Soft Cap: $1,000,000
- Token release: 17,500,000 PTN
- Platform: Ethereum
- Accepted currencies: USD, BTC, ETH
- Token distribution: 88 percent to investors, 10 percent to project team, 2 percent as company revenue
- Non-distributed tokens to be destroyed
- Investment distribution: $3.9 million stripping equipment
- Investment distribution: $2.8 million production equipment
- Investment distribution: $2.4 million mining equipment
Hard Cap Distribution
- 90 percent: allocated to plant purchases to modernize production
- 10 percent: marketing agency
- 10 PTN = 1m3 and the current market price per cube is $16
- Token price pre-ICO: $0,50
- 1st week of ICO: $0,70
- 2nd week of ICO: $0.80
- 3nd week of ICO: $0,90
- 4th week of ICO: $1
With detailed information in the form of numerous PDFs for download, further legitimized by official documents from various state and regional authorities, the company brings a traditional prospectus feel to its online offer. All the better for any ICO, there is no such thing as too much information for interested investors to peruse.
Alongside a detailed whitepaper there is also the offer of a mini version online. In addition, the company has posted their roadmap of the ICO that reads as follows:
- 1st quarter 2018: pre-ICO
- 2nd quarter 2018: ICO
- 3rd quarter 2018 – 2nd quarter 2019: purchase and installation of new equipment
- 3rd quarter 2018: commence buy-back procedure
- 2nd quarter 2019: achieving maximum production volume
- 2022: the end of buy-back procedure
What Is PeatCoin’s Offer?
A modern strip miner, Peat Coin is offering a share of the mined spoils to investors on a staggered basis, with those who get in early enjoying lower costs on entry.
While most investors will likely cash in the tokens for monetary value, the option also exists to access raw product via the tokens for those who find it feasible. Based on the ICO structure, some users who are manufacturers or end users who employ peat might find that by buying into the ICO, their input costs are lessened, and they also have the option on future trade-offs through the PTN token.
How Does It Work?
Very much like IPOs in the formal markets, the PTN offer is raising capital for expansion and upkeep. Investors who buy in will be rewarded through investing in a limited resource that has global demand. The company also has existing clients and a healthy forward order book. Investors will buy PTN tokens for medium-term dividends from the company’s mining operations.
Who Comprises The PeatCoin Team?
The team at PeatCoin is made up of the founder Avachev Alexander, MD Elena Obukhovich, CFO Alla Naumova, Semenov Sergey, the production site manager and Zakharov Vadim, head of mining.
Other contributors are the staff contingent who mine each day, including 36 machine operators, 22 technicians and engineers, 12 production line workers at the company factory and a further 80 general workers. The ICO team comprises Dmitriy and Ivan Poduzov who are steering the ICO launch and integration.
Where Is PeatCoin based?
Peat Coin is a Russian concern, resident and operational north of the Russian town of Yekaterinberg.
When Did PeatCoin Commence Operations And What Is The Timeline For The ICO?
The company was founded in 2012, while production started in earnest during 2015, employing new machinery on the new deposit license.
The ICO will roll out as pre-ICO during the first quarter 2018, the ICO proper in the months of the second quarter 2018, the 3rd quarter 2018 — 2nd quarter 2019 will see the company making plant purchases and effecting new installations of production machinery, and the first available buy-back commencing in the 3rd quarter 2018.
Risks appear low on this project, as it is a going concern with an established record of production and existing clients who preorder. That said, potential risks include government interference, slowed production due to unforeseen natural hazards or disasters and labor issues, always a consideration in mining productivity.
None of these loom, however, but the innately heavy-duty nature of mining and accompanying need for a fairly large staff contingent can impact production at times, due to unusual weather, mechanical breakdown or labor disputes.
Unlike the often-ephemeral projections that abound in the cryptocurrency space, Peat Coin has a very measured and positive growth outlook. Measured in tons of peat, the future looks bright, even were the company denied expansion into further deposits.
Indeed, so predictable is the world’s need for peat and the company’s existing mining operations, while investors may not glean supernatural scores from snapping up tokens, they will almost certainly glean a handsome, measured return.
PeatCoin ICO (PTN Token) Conclusion
While there is some sensitivity around the environmental impact of mining peat, with some industries looking to coir from palms and other possible substitutes, the peat mining industry is unlikely to succumb to green pressure any time soon.
In a nutshell, the Peat Coin offer is that of a reputable, extant mining house that mines a high-demand product for established clients, all of which adds up to an earthy and potentially very profitable investment for buyers of the PTN token.