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There is a shortage of food production in Russia today, which has caused the demand for farms and other such producers to skyrocket. However, setting up a farm is no easy feat, despite being a profitable business, and even investment.
Banks do not make things any more easy for people and businesses trying to help alleviate the demand for food stuffs. Loans require collateral, and unfortunately, for a farm, its biggest collateral is not accepted – land.
This has prompted Khokholskaya Agricultural Company to look a little to the future, as they hope to launch MilkCoin, a cryptocurrency ICO that will fund a dairy farm in the Voronezh region of Russia.
The agricultural company is looking to the Blockchain to provide them with funding for a massive, and necessary, dairy farm. But at the same time, they are hoping to be a profitable investment thanks to the power of the Blockchain.
By decentralizing the process, the dairy farm will be able to be funded in a crowdsourced style as people will have the opportunity to invest in agriculture. Khokholskaya believe that because of the high demand, and even to the fact that the Russian Government is backing such projects, their farm will be a success.
MilkCoin is therefore aiming to be a company that creates a fully functioning dairy farm which allows investors into their Ethereum-based coin, to receive dividends and profits. MilkCoin believes that by bypassing the banks, and fully decentralizing this process, they will be able to reach their goals as well as make their investors happy.
Getting the Milk out
Khokholskaya are a well established firm, unlike most companies that launch an ICO, which are usually startups. They’ve been in operation since 2009 and already have invested over $10 mln into the project over the past few years.
In this time, the agricultural company have had their experiences with getting farms up and running, and thus know what to aim for. They have four steps which include adding machinery, reconstructing the feed elevators, as well as building the animal feed mills, and then bringing in the dairy cows.
The company already has the land – which was useless for collateral, but is a good 3,500 hectare space in which the farm will be constructed.
MilkCoin seem to think they have what it takes to launch more than just an ICO, but a lucrative one. They claim that because of the high demand, once the funds are received, they will be on their way to dishing out annual dividends as high as 70 percent.
They also believe that there could be quarterly three percent pay outs and that the token buyback may reach as high as $1.20.
They also add credibility by securing their initiators for this ICO out of Liechtenstein. Because of this European-based businesses backing, the MilkCoin team feel they can produce an ICO that is also reliable and secure.