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.
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.
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.
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.
| Pre-Ico Start date | March 22, 2019 |
|---|---|
| Pre-Ico End date | June 24, 2019 |
| Industry | Energy |
| Platform | Ethereum |
| Founded | 2019 |
| Website | https://oilwellcoin.io/ |
| Whitepaper | Yes |
| Countries | Singapore |
| Start | July 8, 2019 |
|---|---|
| End | December 12, 2019 |
| 116 days left | |
| Token | OILD |
| Soft cap | $10 000 000 |
| Hard cap | $50 000 000 |
| Tokens for sale | 10400000 |
| Accepting | BTC, ETH, LTC, DASH, BCH |
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.
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.
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.
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