Hong Kong based Bitcoin Entrepreneur James Bang announces CashCow ICO designed to increase Indonesian cattle farmers’ profits from the sale of their cows from 20% to 33%.
The South China Morning Post reported on Bitcoin entrepreneur and investor James Bangs’ desire to revolutionize the cattle financing model, specifically in Indonesia where the large population of farmers is unable to buy their cattle assets outright.
Businessman turns to cryptocurrency to help Indonesian farmers https://t.co/eqS0kaNl7T pic.twitter.com/KP7kr6sgwQ
— South China Morning Post (@SCMPNews) August 6, 2017
Family Vacation To Indonesian Family Led To CashCow Idea
James Bang first thought of the CashCow ICO during a trip to Indonesia with his family, where he observed that his Father-in-law had sold two cows for HK$27,300 (approximately $3489.82 US Dollars) to pay for the renovation of his kitchen.
Bang noted:
For another family, their motorcycle was old and they needed to upgrade. So they sold two or three cows to be able to afford a major purchase.
Cattle are then easily accounted for by representing them with tokens on a fully documented blockchain ledger, in this case, the Ethereum blockchain. However, most poorer Indonesian farmers do not directly own the full worth of their cows, which are financed for purchase by third party financiers. The farmers are liable for costs such as feed and veterinarian bills while the financier often takes the largest share of a cow’s final sale price, whether this be to another owner or directly to beef production facilities.
Airbnb for Cows
Discussing the impetus behind CashCow, Bang explained:
I was really inspired by Airbnb… I figured how can we apply this to the agricultural industry … There had to be a way these farmers could maximize their extra farm space.
While the South China Morning Post does not elaborate on this point, it is possible that farmers will be able to leverage their extra farming space by possibly accommodating investor cows. Bang hopes to raise US$15 million through the offering set for launch in October 2017, which will be used to fund the purchase of calves.
Higher Returns for Cattle Farmers
Bang said his goal is to give farmers higher returns when they sell their cattle, which he sets at 33 per cent, given the cost cutting afforded by the lack of third party accounting this is a reasonable increase in income for farmers currently only getting 20% of the cows’ final sale value.
Finally, Bang will also give investors 33 per cent from every cattle sale, with his start-up reinvesting the remaining third to purchase further cattle and build larger cow sheds.
Will this ICO be something you are interested in and is this the kind of ICO that you think Blockchain technology is ideal for? Let us know in the comments below.
Images courtesy of Pixabay, Pexels