Cargo Coins foundation is based on two main pillars–the first pillar being the online platform allowing for various parties to connect and exchange information on cargoes, their transportneeds, as well as supplemental services. The second pillar are the smart contracts: those can beused as just an electronic mean of recording the whole process from the offer to the delivery, orcould additionally be used to facilitate the actual payment, being it a direct payment, escrowpayment or escrow payment with partial funds release at various stages. It is designed to attract a wide user basefrom a multi-billion dollars B2B marketplacebyintroducingand implementingfreeonline services.The CargoCoin platform usersinteraction in the services sectionsnaturally delivers demand for the platform smart utilities. These smartutilitiesare facilitated throughCargoCointokens. The aim of the platform is to bring maximum demand for CargoCoin tokens. Through demand for the tokens the CargoCoin ICO supporters receive added value.

1.What is CargoCoin?

The full scale scope of the project extends to all trade and transport areas the shipping industry (containers, bulk, break bulk, liquid bulk), inland transportation (trucks, railways), air cargo (transportation by planes, drones, etc.), other types of “new age” transport such as pipeline transport, space cargo, intercity and oute r city shared rides. Dedicated platforms for the different types of transport will be interconnected, allowing for infinite functionality. The objective is the creation of synergy between the commodities & cargo traders with all transport means on a global scale. The integration of all participants and utilities delivers unique, FIRST of its kind Ecosystem. CargoCoin is designed to utilise the platforms, both as a secure transfer and storage method by the means of smart contracts, as well as a payment unit for services , freight and cargoes. The CargoCoin concept fully unleashes the potential of block chain crypto currencies to act, not just as a means of payment and store of value, but also as aninteractive way of sending, receiving, approving, rejecting and signing documents through the process. CargoCoin is to be based on the newest ERC223 token standard. It has major improvements compared to the ERC20 token standard. The ERC 233 allows for more advanced, precise and universal handling of smart contracts , required for the project, while avoiding potential token traps. The issued tokens are designed to fully act as smart contracts programmed in Solidity and available as open source for everyone to reviewand inspect the code, thus serving all purposes of the project simultaneously.

2.The Problem?

The size of the transport industry is tremendous – the global value of the seaborne trade it self is over $12 trillion (WTO statistics). The value of freight rates is USD 380 Billion is 2017 (UNCTAD). Although the shipping industry is one of the largest economic sectors it is the least technologically advanced one. Today paper documents are issued for all shipped cargoes, no matter of the transport means. All original documents are being sent by couriers, taking time and money. All cargoes and freights are being paid for in traditional ways–via bank wire transfers or letter of credit. Those are expensive, slow and non-confidential methods. Increasingly more often USD and EUR transactions are being blocked for weeks by US correspondent banks. Anyone in the industry has encountered that problem. Original documents delivery delays and money transfer delays cause unaccounted extra costs, opportunity cost & depreciation of assets, while disturbing a long supply chain. The Cargo Coin blockchain technology delivers revolution of the trade& transport by fostering optimisation. It will eliminate a number of problems.

Reducing Fraud – CargoCoin minimises the risk of fraud and in many cases complete lyeliminates it, by not releasing any payments until the counter parties’ preset conditions are met & publicly available proof of the payment has been made or secured in a smart escrow utility. Payments will be guaranteed by default. Fraudulentendorsement and duplication of ownership documents is ruled out.

Lowering Costs – CargoCoin will significantly reduce costs, compared to high percentages and other fine print fees that are charged through the whole process by banks, couriers, insurers, brokers, agents, lines, etc. Guaranteed payments will not incur any costs, as it is the case with Bank L/C at the moment.

Minimising Delays — Cargo Coin avoids the delays by providing instant exchange, review and approval of documents and payments between the parties involved.Further delays are caused by different time zones, different public holidays, etc. Theblockchain is always at work 24/7 and does not depend on human intervention.It is 7 www.the cargo coin. comestimated that payment delays alone cost around $19 billion per year (*UNCATD) inlosses.

Increasing Trust — CargoCoin relies on the public infrastructure of the Ether eum blockchain, backed by thousands of people in a peer to peer decentralised infrastructure. Using a proven and trusted technology speaks for itself.

Securing Information – CargoCoin is naturally secured. It relies on the blockchain’s proven hashing algorithm technology. There is no possibility of sensitive commercial information leakage by intermedi aries, such as banks, brokers, agents, etc. While it is fully confidential it also allows for full publicity of the transactions details that are to be visible by all parties and the public.

Safe Archiving – CargoCoin , not just allows but fully relies for full historic storage of all transactions ever conducted, thus avoiding risks of physical loss or destruction of paper documents, while at the same time allowing for easy searching and reviewing past information stored in the cloud.

3. Business Model & Financial Objectives

How the platform generates value to the ICO supporters We have identified the vast added value that the CargoCoin ecos ystem can achieve and generate. The platform links the physical trade and transport with the blockchain technologies. The objective is to create wide user base by introducing simple to use, but efficient, free online interaction services followed by incorporated smart contract Utilities. Smart contract utilities create demand for Cargo Coin tokens. Demand for CargoCoin tokens is the ultimate objective. The ECOSYSTEM participants receive benefits by using the free services and at the same time create th e benefits to the CargoCoin ICO Supporters, i.e.synergy and chain reaction. Demand for CargoCoin tokens.

1.Smart B/L is facilitated by CargoCoin tokens.

2. Decentralized crypto transactions drive up the demand for CargoCoin tokens.

3. Smart L/C and escrow services create demand for CargoCoin tokens. Considering the statistics on trade and transport, t he 3 points listed above can trigger unprecedented high demand for the CargoCoin tokens . At this stage there is NO competitor on the market that offer s similar free services in combination with smart contract Utilities.