A logistics tech startup, called CargoX, has pulled off a less-than-conventional funding campaign, raising US$7 million in a matter of minutes through an initial coin offering (ICO). The funding was raised through sale of CXO tokens, which CargoX said are “utility tokens” that users of its logistics platform can use to pay for services.

While the initial blockchained application is limited to maritime shipments, CargoX says that it is partnering with global multimodal forwarders, and the platform could accommodate expansion into the airfreight business in the future.

The first service CargoX plans to offer on its platform is a blockchain-based bill-of-lading system, which would replace paper bills of lading that can take weeks to pass between parties. CargoX estimates that eliminating these paper-based systems will save logistics companies roughly $5 billion per year, globally, in courier and administrative fees.

“We’re giving shippers and logistics companies the tools to transact directly with each other, in real time,” explained CargoX’s founder and CEO, Stefan Kukman.

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