Crypto-investments in timber industry or Russia modernization

Not Long ago, there were released token secured by wood and timber by the investment fund DAO Lescoin. Soon after that, they launched the preliminary ICO. The question is, why crypto-investors should be interested in this kind of ICO? To be honest, the global timber market can be re-shaped by this project.

A free investment area created in Russia

In the very beginning of the month,Yuriy Trutnev, who is the Russian President’s Envoy in the Far East, announced the intense to create a crypto-exchange in the region that will be government-certified. The Russian Central Bank has approved the project and the platform is developed now. Truntev claimed that the Far East is to become Russia’s free investment zone. According to him, there crypto-trading will be legalized. However, recall, that the earlier request from the Crimea to receive such status were not approved by Russian officials.

The DAO Lescoin soon announced its great development the Far East project. The fund hopes to raise investment for a timber enterprise at the border with China. But will it become the first ICO on the government-based platform? And this is very debatable question.
There is the opinion that an independent exchange is more attractive for investors. The project founder Ivan Gridin is sure, that due to the fact that their production is located in the Far East, they do not have to release the token on the “official” exchange in order to pass under the free investment regulation. They decided to conduct the new ICO ahead of the schedule to get in contact with interested investors. He said: “We will go where the money goes”

Russian timber industry and investors opportunity

The global demand for wood increases dramatically that’s why Russia’s timber industry is on the rise. In 2016, China alone extended the wood import from Russia by 36%. The Russian government lightened the trade development by reducing export duties. However, the industry suffers from the capital deficit. Russian companies do their best to modernize the production.

West Siberia and the Far East are know not only for their vast undeveloped territory, but for the Russia’s rich forest resources.
The lack of transport and wood-processing infrastructure there interfere the development of the industry. Besides, the Russian business has no easy access to foreign capital because of suffering some the economic sanctions. That’s why the crypto-market becomes a new option that promised to be successful.

Gridin noted that they would prefer to sell end products to neighboring China and Japan, but also they need large upfront investment to establish woodworking facilities in the Far East.
He said: “Collective investment is a great opportunity for us, especially as the Russian regulators gave the green light for crypto-trading in the region. The ICO would help us to diversify production and introduce new bio-technology into our business model”.

The first transgenic tree plantation now in Russia
‘Les-Invest’ on 2014 presented a pilot plantation of transgenic pines in West Siberia. Today the trees has are about 4-6 meters and demonstrate the highest wood quality. The bio-technology gives an opportunity to reach higher yields while saving the wild forests. For timber production TG-trees are used in the U.S., China, Brazil and other countries. Russia is not on the list.
The development again demands large investment. The seeds are imported from the U.S. to plant TG-seedlings is yet to be purchased. All these factors pushed the Russian timbermen to consider to find investors in the crypto-market. “Our project is both innovative and profitable as the demand and wood prices are rising. We hope that our eco-friendly initiative will also attract attention. Unfortunately, the majority of Russian small-sized and medium enterprises cannot perform re-forestation after logging in the wild forests. DAO Lescoin wants to minimize the damage caused by the timber production”, said Gridin.
The DAO Lescoin manage the Pre-ICO from September, 18 to October, 18. The company offers some bonuses to early investors – up to 100% on the first week. All Lescoin tokens are fixed by wood stock. 1 Lescoin (costs $50) ensures the right to receive 1 cubic meter of wood or the profits from its processing and sale as sawn timber (costs approx. $200). Moreover, DAO Lescoin let the wholesale buyers to pre-order wood and pay crypto-currencies for it.

Polli Bormotova

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