Blockchain-based commodities trading platform TradeCloud has launched the public sale of their STO. After having completed the private round and reaching the soft cap of $5 million after just one month, the Swiss-based STO is well underway.
TradeCloud has reached the soft cap of $5 million after just one month and has launched its public sale last week. Simon Collins, CEO of TradeCloud, says, “A speedy completion of the private round demonstrates that others also share our enthusiasm for this great project.”
Founded in Singapore and incorporated in Zug, Switzerland, TradeCloud is a communications platform that is designed for the physical commodities industry. It provides an environment in which its producers, consumers, and traders can meet and exchange commodities.
The company also plans to provide a network of post-trade services such as logistics, finance, and documents, all connected on the TradeCloud Commodities Web, centered around blockchain technology.
The platform was launched at the end of 2017 and has nearly 500 users from more than 35 countries. According to the company, over $1 billion worth of trades have already been initiated on the TradeCloud platform.
Security token with profit share and on-platform utility value
The TradeCloud Token (TCST) is a security token that offers investors a profit share. The company will divide 10 percent of its annual net profit evenly across the 50 million issued tokens. The split is pro-rata per token, credits occur in ETH via an airdrop for token holders, and the profit sharing will occur for ten years from the day tokens are issued.
Additionally, TCST tokens provide utility value as token holders can exchange tokens for services on the platform, for example trading, price data, financing, logistics, and insurance. However, if tokens holders exchange their tokens for utility, they will no longer have profit share rights.
“The token’s utility feature allows the token holder to exchange their tokens for internal credits on the TradeCloud platform at a discounted rate. While holding the token, the token holder will receive a profit share from the company,” explained Matthew Botell, COO of the company.
50 percent of tokens remain in treasury reserve
TradeCloud offers 25 million tokens – 50% of the total token issuance – for approximately $20 million over the private and public rounds. The company keeps the remaining 50% of tokens in their reserve as treasury tokens.
Of the 50% offered tokens, TradeCloud allocated 13% of tokens to the pre-sale, 34% to the public sale and 3% to advisors and partners. The hard cap of the STO is $45 million.
The private round started in early June with minimum investments of $25,000. After the soft cap of $5 million was reached in early July, the company immediately went over to the public sale, with minimum investments of $10,000.
TradeCloud has a working product and a strong team
A key differentiator between the TradeCloud STO and many other STOs is that TradeCloud already has a working product. Instead of using the STO funds to develop the product, TradeCloud will use them to accelerate growth. That reduces the development risk for investors.
The value proposition of the platform makes sense: reducing costs, improved margins, and security. The fact that the platform already has more than 500 users and trading volume of $1bn to date proves the point.
Moreover, the company seems to have a strong and experienced team behind it with vast experience in the commodities space.
As with all STOs, the proof is in the pudding. However, TradeCloud has already reached its soft cap. We shall see how the public sale goes, but there is no significant red flag why this STO should not conclude successfully.