LavkaLavka issues its own crypto currency Biocoin (BIO). In August, we will hold the ICO (Initial Coin Offering – raising funds of investors using crypto-currency, similar to the placement of securities on the exchange). In total we have issued 1 billion biocoins, during the ICO it is planned to sell 800 million biocoins and to attract the amount of about $ 15 million. The news is published in the newspaper «Kommersant».
For what do we do that?
Biocoin should become a part of the financial blockchain-platform, which partners from all over the world, who are sharing our cooperative principles of responsible consumption, biodynamic agriculture, supporting small family farms, will be able to join. We have already begun work on integrating ideologically similar projects in the world into our BioCoin platform. In the near future, biocoins other than LavkaLavka will be accepted by: Good Faith Restaurant Group restaurants Trevett Hooper (Pittsburgh, USA), farm cooperative Libera Terra in Italy, Obed.bz Moscow farm store, farm cooperatives in Germany and several farm cooperatives, shops and restaurants in Russia, Europe and Asia, with which active negotiations are already being held.
LavkaLavka’s annual turnover in 2017 will be about 400 million rubles. Every month we have about 20 thousand new customers and visitors of places of public catering. Platforms’ partners attract about 20 thousand customers a month.
LavkaLavkas’ customers and other participants of the platform will be credited with biocoins in the tune of 10% of the cost of each purchase. For currency’s value accrual it will be redeemed by LavkaLavka and new platform participants from investors who purchased it during the ICO. And due to the development of the platform the value of our Crypto-currency at the exchange will grow,later we will buy it from investors at a higher price than it cost during the ICO.
The expenses on developing the platform will pay off even before the completion of the ICO. The proceeds will go to refine the loyalty system, combined with the blockchain-platform, and increase the number of platform users by opening new own points and expanding the partner base.
Illustration by Sam Morda
What do experts think?
According to the estimations of the research company Autonomous, fintech startups in the first half of 2017 attracted $ 1.27 billion by selling bitcoins and other crypto-currencies in the framework of the ICO. Runa Capital’s investment director Dmitry Galperin believes that this is possible to hold an ICO of $ 15 million, the main thing is to be able to maintain the liquidity and the value of the currency for long-term. «Actually, the LavkaLavka’s pattern, in fact, is a coalition loyalty program, built on a blockchain» – thinks Halperin. The pattern is difficult for consumers to perceive, but «hype around crypto» can rise its popularity, he adds.
«The moment for PR on the ICO theme is very successful» – agrees Flint Capital partner Andrey Gershfeld. «It is unlikely that LavkaLavka has sufficient audience to raise the right amount exclusively among current or potential customers. For ICO success, you need to use the current speculative sentiments on the market. The idea has a potential, but the platform will need to be actively promoted so that other participants will join it» he argues. He estimates starting investments for launching the crypto currency and placement at $ 150-200 thousand, further investment in marketing will be required as the platform will develop. «Promotion and connection of new participants can really cost millions of dollars» – Mr. Halperin believes.
Basic principles of BioCoin
– All clients of business projects that have joined the BioCoin loyalty platform receive BIO crypto currency on their crypto-wallet, which is assigned to each client. As accruals, the customer receives 10 percent of the amount spent. These 10 percent are credited in the BIO – percentage of the purchase amount in national currency at the crypto-exchange rate at the time of the purchase. Charges go to all customers without exception.
– Business projects that have joined the BioCoin loyalty platform take not only the national currency, but also crypto-currencies – Bitcoins and others (LavkaLavka already does it). And according to the same scheme from the purchase amount – 10 percent are credited to the BIO on the сustomer’s crypto-wallet.
Photograph by Stephen Lichtenberg
– Biocoins are accepted for payment by business projects that entered the BioCoin loyalty platform without limits – along with the national currency and other crypto-currencies.
– Crypto-currency Biocoin will be outputted to crypto-exchanges after ICO.
– All Biocoins, which are necessary for the accrual to customers, are redeemed on crypto-exchanges by those business projects that have entered the blockchain-loyalty platform. The ransom will occur as necessary. This is formed with the growth of the turnover of each business.
– The blockchain-platform of BioCoin loyalty is transferred by its creators to gratuitous use for all willing businesses that share ethical principles of the platform. Our goal is the greatest possible coverage of customers using the platform and turnover of cryptocurrency Biocoin.
– A total of 1 billion biocons were produced during the issue. And there will be no more. The stock value of BioCoin will grow as the number of currency users and its turnover within the platform increases. It will also increase its rate inside the loyalty platform.
What is the main guarantee of the success of BioCoin
– We create a replicated system for exchanging fiat money for biocoins and these exchanges don’t require any action from the customer – everything happens by itself at every purchase. This exchange is the logic of the platform.
– We are putting into the platform the opportunity to pay for purchases not only with real money, but also with crypto-currencies (bitcoin and others). Ideally – the highest possible number. In fact, every time 10 percent of the amount changes to biocoins and we get also holders of crypto currency that receive biocoins.
– This platform operates in different countries, it will be operated from the beginning in Russia, USA, Italy, Germany and Japan. And further everywhere.
– It is advantageous for businesses around the world to use our loyalty system and biocoins.
We give this blockchain-platform to our partners for free. Business gets a working marketing mechanism of communication with customers. Due to the algorithm of buying out and crediting biocoins to customers, the business does not lose money at discounts. Because the customer returns all the biocoins bought from the investor in the business – when he purchases the goods for the accrued biocoins. And business, if necessary, can sell biocoins on the exchange or put into circulation. In addition, there is also an ideological effect. Through participation in the platform, business projects show their commitment to the ideas of sustainable development of the planet and the green economy.
– The only way to replenish the amount of biocoins for accrual to a growing number of customers is to buy back on the exchange
– With all of the above, this is not just a business and it’s not just an investment. This is a contribution to the alternative development of the planet. Investing in the green path of development, organic, and broader – into the future, in which biocoins enable the development of small farms and local communities.
Follow the news! It will be possible to buy biocoins and invest in local farmers in August 2017! How? We’ll tell you more!