300 cubits, a pioneer in using blockchain for international shipping has given up on its TEU token, due to lack of business.
On Sept 30th, 300 cubits released a statement stating:
“The transaction volume through the system have been far from commercial. Only a couple hundred containers have gone through the system, which, although may seems plenty among the shipping blockchain projects, is not sufficient to keep the system going commercially.”
In early 2018, TEU was issued initial coin offerings while being used as a medium of exchange for the company’s Booking Deposit Module.
TEU were used by customers who were given tokens to book container space with participating shippers.
In March 2018, trials were conducted and by July 2018 the system went live. On the other hand, the interest in the project was limited with few transactions being achieved.
The TEU were tested by the following companies while being in discussion with major of other shippers: –
TEU could not be sustained
Regulatory issues were the cause of the impediment of the project. The uncertainty on how the tokens would be treated by relevant authorities would treat the tokens caused potential clients to back off.
Liquidity and volatility were also seen as potential problems while the main selling points of the project was- immutability and anonymity while that did not resonate with or were seen as problems by the market.
According to the statement by the company, it will burn at least 75 per cent of the TEU tokens while continue to burn as they are being returned. The company said that it will continue to pursue other blockchain-related projects.
Blockchain shipping in other projects
Tradelens solution is a joint venture of IBM and Maersk, a logistic company. The merger is expected for an establishment of a well-organized tracking and information sharing.
The move from paperless to the digitization of the shipping process and the facilitation of immutable records are the benefits of adopting a blockchain-based shipping system.
News Source: Coindesk.com| Image Souce: 300cubits.tech, cargox.io