Cryptocurrencies are a hot new presently, all thanks to the roller coaster ride that Bitcoin witnessed in the course of a few months, rising from $1,000 to $6,000 by mid-November in 2017 to skyrocketing to $19,500 in the December of the same year. The currency has fallen down back to $6,000. For the shipping industry, a currency that fluctuates so dynamically cannot work well for day to day transactions. Moreover, several governments and banks have put restrictions on dealing with the cryptocurrency.
But a new cryptocurrency may be apt for the shipping industry. This is the 300Cubits project that was launched in January this year by two businessmen based in Hong Kong. The company has developed the TEU tokens, aiming to find a solution to the issue of overbooking by container line operators and no-shows by shippers; such issues translate to losses of around $23 bn every year.
In cases when shipping lines are required to compensate when space is not left for cargoes that were prebooked or when shippers are required to pay deposits, all involved parties can deposit TEU tokens when a booking is made. When one side defaults, the other party can take possession of the tokens. To set the business rolling, the founders are planning to distribute some free tokens to shipping lines and shippers. After this, tokens will have to be bought. The company will keep a large portion of the specific initial distribution quantity and will make profits by earning a percentage from every deal that has been done with the use of the tokens.