Salt Coin is a commodity-backed currency based on production at Europe’s largest salt manufacturing facility. Find out how it works today in our review.
What Is Salt Coin?
Salt Coin, found online at SaltCoin.io, is a digital token (SCOIN) backed by the production of salt at a manufacturing facility in Europe. It’s a digital currency based on real salt mining.
Salt Coin is built on Ethereum.
However, Salt Coin’s manufacturing facility is not yet built. The company has no infrastructure or manufacturing equipment in operation. Instead, the company is seeking to use Salt Coins to raise money to build that facility. That facility is being built with the goal of becoming Europe’s largest salt mining facility.
About Salt Coin’s Manufacturing Operation
The makers of Salt Coin seek to build a salt manufacturing facility on Europe’s largest salt deposit. That salt deposit has not yet been exploited. With money from a crowdsale of Salt Coin tokens, the developers want to turn that salt deposit into table salt.
The salt deposit is found in Belbazhskoye. The deposit appears little-known outside of Russia. A Google search mostly turns up information about the Salt Coin ICO. However, the deposit is mentioned in this book from 2007, which states that the deposit has 712 million tons of table salt. Belbazhskoye is located in Nizhniy Novgorod Oblast, located east of Moscow.
The creators of Salt Coin want to launch industrial full-stack salt production. The salt plant will be based on vacuum evaporation. The salt itself will be mined through underground dissolution.
As an investor, you buy Salt Coin, and the value of Salt Coin increases based on the value of the salt mining operation. As a token holder, you’re a shareholder in the salt production company.
In addition to producing table salt, the salt deposit plans to offer salt for food and chemical industries, as well as for chlorine and caustic soda producers.
The book linked above suggests the deposit has 712 million tons of table salt. The SaltCoin.io website mentions 2.5 billion tons or proven salt reserves. They cite an estimation by IMC Montan.
In any case, the company believes they can produce 600,000 tons of salt at the plant every year and take a 30% market share. The 30% market share refers to the fact that “more than 30% of all extracted salt will be sold under a well-known trade brand in all major retail chains.”
If Belbazhskoye was discovered in the 1970s, then why hasn’t it been mined to this day? The company addresses this question on the official website. It was planned to be mined in 1980 to 1990. However, political and economic events (like the disintegration of the USSR and Soviet industries) meant the project was left incomplete.
In any case, the Salt Coin whitepaper provides the specific location of the salt deposit. It’s located in the Koverninskiy area of Nizhniy Novgorod (155km from it). The salt deposit sits 460m underground. The deposit will produce NaCl with 99.7% purity.
The Salt Coin Timeline
Obviously, when you’re investing in digital assets like Salt Coin, timeline is extremely important. How long will it take to receive a return on your investment? When does the company believe production of the facility will begin? Here are some crucial stages listed on the official website:
2015 To 2016:
Legal design, analysis, and planning took place. The company acquired licenses for subsoil use for a period up to April 30, 2030. They completed stock assessment, and performed a preliminary study on the development of the facility.
Work with contractors, designers, and engineers to approve the technical project for field development, then begin designing and engineering the production facility. The Salt Coin website features mock-up images of the proposed facility, although it’s not totally clear how far along the design process is.
2017 To 2019:
Preparation of infrastructure and construction of the salt plant. The plant will have a capacity of 600,000 tons per year. By 2019, the facility will start production and begin operations.
Ultimately, by 2021, the facility aims to be earning $200 million in target revenue. To get started, the project requires an investment of $73 million.
Salt Coin Features
Here are some of the unique features of the Salt Coin project compared to other salt mining operations:
- Low Logistics Costs: Salt Coin is building its facility close to markets, and close to the existing chemical industries around the greater Moscow region, including Povolzhye.
- Expanding Market: The company believes the market for salt is currently expanding by 20% to 1767 thousand tons.
- Modern Technology for Maximum Profitability: Salt Coin claims that its EBITDA will be at 50% at the full power level, which makes it a very profitable enterprise.
- Own Distribution Channel: Salt Coin’s developers have a partnership with a well-known distribution company. They have their own distribution channel they can use to sell retail products.
- Availability of All Necessary Resources: Raw materials, infrastructure, and logistics are all in place waiting to be deployed.
- Support from the Russian Government: Salt Coin doesn’t claim to have the specific support of the Russian government. However, Russia has recently taken measures to boost salt production in the country. Specifically, the government banned edible salt imports in 2016. This move is expected to boost salt production across Russia.
The Salt Coin ICO
The Salt Coin pre-sale took place from August 7 to August 22. The pre-ICO took place from August 23 to September 29. The general crowdsale is scheduled for September 24 to December 24.
The company was aiming to raise $500,000 through its pre-sale and pre-ICO. They’re hoping to raise the final $72.5 million required to start the project through their general crowdsale.
The tokens are priced at 1 ETH = 75 SCOIN, or 1 SCOIN = 0.0133333 ETH.
Who’s Behind Salt Coin?
The Salt Coin project is led by Sol Rosi, which is a subsidiary of a corporation called Resurs.
The specific salt mining license for the rock salt field is owned by Nanotek Ltd until 2030. Nanotek is a public join stock company owned by Sol Rusi.
The developers of Salt Coin have partnered with international auditor PWC and financial consultant Alfa-Bank, a Russian bank that advises companies on capital raising issues.
The team of developers itself is described as a “multidisciplinary team” of 10 people who have experience in investment and banking, business consulting, marketing and advising, and law.
Salt Coin Conclusion
Salt Coin is one of the more unique ICOs underway today. The ICO is raising funds for the construction of a salt mining facility in Nizhniy Novgorod, Russia. The company estimates that the mine will be enormously profitable by the year 2021. However, in order to build the mine, they need about $75 million in funding. That’s why they need the token sale.
Overall, there’s limited information about Salt Coin available online. The company hasn’t released the design plans for its production facility, for example. It’s also unclear how much financing they’ve received from other sources – if any.
To learn more about Salt Coin, or to participate in the ICO today, visit online at SaltCoin.io