WoodsCoin ICO (WDSC Token): Siberia’s Blockchain Forest Project?
There is always a huge demand for wood products within the construction industry. A significant reason for this is probably the easy availability of the products for people to find. While most of the forest resources are indeed renewable, the considerable pain of the manufacturing process comes in having to change it into usable material. The process does require adequate machinery to ensure quality end-products, and this consequently means sufficient funding for the venture.
Fortunately, the rise of blockchain and particularly tokenization has allowed for a more decentralized method for individuals to fund ventures through ICO. The following sawmilling venture saw it best to attract investment to their idea through issuing a cryptocurrency token on their production
WoodsCoin is a sawmill production company that will have investors finance their ventures through blockchain technology. As a real business, the WoodsCoin project will work to exploit the forest resources within the Tomsk Region and all the resulting profits distribution going to the investors. WoodsCoin concept works on the value of the wood products which act to attract the necessary investment for their wood manufacturing. At the average market price, the WoodsCoin token will have a backing of U$D 157, which is the value of a 1 m3 of the wood products.
How The WoodsCoin Platform Works
The sawmilling concept entails leasing the forest plot, and WoodsCoin is set to have a plot of 1.5 hectares (540,000 m3) of the Tomsk Region. The area will be in use for timber harvesting from which processing and sawing take place and removes the finished wood products.
The logging factories will undergo commission and with a considerable wood consumption expected, here is more on what they will undertake
- Logging the timber through mechanized methods
- Preparing and sawing of the logs
- Forming the sawn timber sections
- Processing the finished wood products
- Loading the products onto a carrier.
WoodsCoin Gains And Risks
- Use of a real product to back the WOODSCOIN token ensure there is low volatility due to the correlation
- Discounts on the finished wood products
- Increased profitability due to maximum utilization of the wood products, even the waste.
While there is the potential viable sale of wood products, there are also risks that come with the project. The first of the non-specific dangers include
- Economic risks such as inflation, and fluctuating exchange rates
- Legislative risks such as regulation, and taxation from government and environmental authorities
- Climatic hazards that will consist of the impact of the sawmilling production on the environment.
- The insurance of the project on how capable it is in the production of wood products.
How Viable Is WoodsCoin?
While it would seem a slightly viable idea, there isn't much positivity I would anticipate to come from WoodsCoin. The whole project somewhat lacks a foundation although the token appears less susceptible to volatility. The primary point of concern is that the project has an environmental implication and this exposes it to restriction. Additionally, there is very little information to substantiate the step WoodsCoin have taken to gain a foothold in the forestry industry.
In conclusion, WoodsCoin is not a project that I would recommend. While it is a token, the whole project lacks a direction on how they plan to achieve their goals within the roadmap.