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Cryptocurrency to tokenise sale of marine assets

The seemingly endless stream of maritime blockchain projects has had another addition with the launch of a new cryptocurrency called SHIPs (Shipping Industry Participations), which aims to tokenise marine assets to allow them to be traded in small chunks, opening up the asset financing market to a wider range of smaller participants.

{mprestriction ids="1,2"}The online exchange platform will allow marine assets and services to be traded using the newly launched SHIP tokens, an ERC20 compliant cryptocurrency that can interact with the Ethereum blockchain network. Ethereum’s own Ether tokens are currently the second largest cryptocurrency by market capitalisation behind Bitcoin.

The Ethereum Virtual Machine (EVM) running on the Ethereum blockchain powers its ‘smart contracts’ capability, which allows transactions to take place on the decentralised platform that are then verified by the network and added to the blockchain.

SHIPs tokens will initially be sold at pre-defined prices during four phases of crowdsales. The first of these will see 500 SHIP tokens available in exchange for 1 Ether – approximately $750 at the time of writing.

The total number of SHIPs that will ever be made available is 1.5 billion, with 25 million to be released in the first phase. These tokens can then be exchanged for tokenised assets and services, which will all be priced in SHIPs at a rate based on the underlying asset or service’s fiat market value.

The physical assets traded on the platform are held by a third party company, supervised by a board which the project team says will comprise of “persons of high standing in the maritime industry to ensure protection of underlying value/earnings capability of the asset and to ensure that operations are conducted / cash flows maintained in a transparent manner for the benefit of fractional asset holders.”

The project is being backed by AlphaSeas Management Limited, a marine investment and asset management advisory group, with that company’s principals having invested approximately €750,000 into the development of the ecosystem.

“We already have approx. US$ 200 million of assets and services committed to the platform,” the company said, in a whitepaper outlining the project details.

“In 5 years (by 2023), we conservatively expect US$14 billion of assets onboarded and tokenized on our store. This emulates the growth trajectory of current ship finance organizations which have, of course, not benefited from the liquidity that SHIPs bring to participation.”

“Depending on the leverage that users decide to employ in their trading activities, we believe transactions will mirror large OTC exchanges for currencies where velocity can exceed 90x per month or 1,000x per year. This could build transaction volume to nearly US$15 trillion per annum by 2023. An improved speed in asset onboarding due to technology absorption effects and liquidity  generation effects could easily help the transaction volume surpass the US$15 trillion mark.”{/mprestriction}

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