OilWellCoin (OilWellCoin) Review

OilWellCoin Opens Doors to Oil Market

OilWellCoin was founded by the Russian specialists in the fields of geological exploration as well as oil mining, production, and refining. They claim that this startup will pioneer the merger of the oil industry with the blockchain technology, which will be vastly beneficial for the corresponding sectors of both Russian and global economies.

The project’s marketing campaign is based on the notion that OilWellCoin will afford thousands of people around the world to profit off of oil production and trading thanks to the unprecedented liberalization of this particular market.

OilWellCoin has just completed the pre-sale of its proprietary token (OILD), which offered a 50% discount. However, those who missed the chance to jump on that bandwagon will get another opportunity to purchase these tokens during the upcoming ICO.     

Company information

The project has been launched under the auspices of Demiurge Consulting LLC, the US-based supplier of crude oil and iron ore, and Hadius Pro Marketing Pte. Ltd, the exempt private company registered in Singapore that conducts advertising activities. The final beneficiary of the former company is Magomed Khadisov, the Chief Financial Officer at OilWellCoin.

Despite the fact that the project team is comprised almost entirely of Russian specialists, OilWellCoin is registered in Singapore for regulatory compliance purposes.       

The goal and the methods of its realization

It is generally perceived that the oil business has very strict admission rules which make it virtually impossible for an average individual investor to enter and play there. OilWellCoin has set itself a goal of defying this discriminatory tradition by substantially lowering the entry threshold to the given industry for all interested participants who are prepared to devote at least $10.000. 

In pursuance to this objective, OilWellCoin has designed a blockchain platform powered by the ERC-20 compliant OILD token which stands for Oil Discount. The reason behind giving it such a name is that the project has elaborated a Certificate Management System that offers special discount certificates in exchange for OILD tokens obtained through the token sale or at a crypto exchange. A certificate provides for a 20% discount on the barrels of crude oil mined by the partnering companies. The user can then proceed to trade this oil at the commodity exchanges or wait till the oil is processed and then sell the petroleum products for profit in OILD.    

The team members

  • Alan Kokaev. The founder and CEO with decades of experience in the oil & gas industry under his belt. He also acts as a general director at Demiurge LLC.
  • Magomed Hadisov. The aforementioned co-founder and CFO. Before becoming a part of OilWellCoin, he worked at Chechengazprom JSC, the subsidiary of Gazprom OJSC and managed several projects during the FIFA World Cup in Russia. 

ICO details

At the moment, OilWellCoin is taking time to prepare for the main round of token sale which is due to take place in the period from July 8 till December 9. The total amount of 16 million OILD has been allocated for the ICO. As of now, there is no information regarding how many tokens had already been sold during the pre-sale round. Those who decide to purchase OILD during the main round can receive a discount of up to 30%, depending on the purchase volume. The price of 1 OILD is $5. All investors must be whitelisted and pass the KYC verification. Citizens of the United States are banned from participating in the token sale.

Author: Alex Paulson for Crypto-Rating.com

  • Oil licensed areas. Issuing of OILD tokens is regulated by Russian and international law, in connection with their binding to electronic discount certificates of an unlimited period of validity, upon presentation of which, within the framework of the OilWellCoin platforms, one can receive a discount when buying goods - oil. If the holder of tokens does not buy the oil produced, he will be able to sell the token in the free market to interested parties.
  • Blockchain. To implement the plans of OilWell, the project team launches a blockchain platform that will create the necessary infrastructure for the development of the production, sale and transportation of oil operating with cryptoactive assets. Platform users will have the opportunity to purchase certificates issued by the OilWell group of companies that provide the right to a discount on the purchase of oil produced from the funds raised from the sale of these certificates.
Pre-Ico Start dateMarch 22, 2019
Pre-Ico End dateJune 24, 2019
  • Alan Kokaev. CEO
  • Magomed Khadisov. CFO
  • Musa Jamalkhanov. CPE
  • Sarkis Darbinyan. Lawyer
  • Batrbek Kusov. CPG
  • Artemy Soldatenkov. CBDO
  • Q3 2017. Obtaining a license to develop a site owned by the company.
  • Q4 2017. Collection of geological and technological materials for the analysis and subsequent development of the production plan.
  • Q1-2 2018. Preparation of production plan and development of project documentation.
  • Q2-3 2018. Improvement of the concept to the platform of financing and development of the oil production and refining industry based on blockchain technologies.
  • Q4 2018. Passing the state examination. Registration status and registry gift certificates. Start of sales of discount certificates.
  • Q1 2019. Sale of discount certificates and the decision to choose one of the scenarios of the project. Start The Certificate Management System.
  • Q2 2019. Purchase and supply of equipment and special equipment for repair and restoration works and testing of oil horizons in previously drilled wells. Capital construction within the production zone (in-field oil pipelines, oil collection and treatment point).
  • Q3 2019. Performance of repair and restoration and preparatory works. Geological exploration: seismic exploration; drilling exploration and production wells. Testing of oil horizons in existing wells.
  • Q4 2019 onwards. Commercial exploitation of the field and further development of the platform.
StartJuly 8, 2019
EndDecember 12, 2019
116 days left
Soft cap$10 000 000
Hard cap$50 000 000
Tokens for sale10400000

Despite the generally negative stance that the general population has on the industry of crude oil production, any wise investor understands that it still possesses an immense potential for profits. As long as there are automobiles and other machinery that runs on petrol, there will be a constant demand for oil products. So, becoming a gateway for mid-sized investors in the oil market represents an excellent strategic plan, designed by OilWellCoin. But then again, it all comes down to the regulatory compliance, and in the case of Russia, it is as unpredictable as playing the Russian roulette.

Dimitry   August 3, 2019  

The fact that OilWellCoin plans to conduct almost the entirety of its operations in Russia is the cause for my concern. Although this country is immensely rich in oil, it also has a rather unpredictable government that has a mildly negative stance on projects somehow associated with the blockchain technology. You never know when the Russian bureaucracy would feel a sudden urge to impose some severe restriction on profits gained from the likes of OilWellCoin, or ban the digital assets altogether. So, I wouldn’t risk investing in this project.

Martin   July 16, 2019  

OilWellCoin had the decency to admit that one of the reasons why they have launched this project is to circumvent the sanctions. Regardless of that, this project shows great promise because the oil will indeed remain one of the most valuable commodities for decades to come. It is great that they grant an opportunity for smaller investors to tap into this very profitable industry, especially since the market seems to have begun the recovery after the 2014 crash. $10K is a very high threshold to get into OilWellCoin but it may be worthwhile.

Valdis   July 1, 2019  

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