In a further step of wider adoption of blockchain technology in various industries; Blockchain Metal Company is making trading copper easier and safer than ever before by utilizing ethereum, the world’s leading programmable blockchain. Blockchain Metal Companies’ new token, the Cu Coin MBX, represents a standardized negotiable electronic warehouse receipt in accordance with §475 ff. HGB (German Commercial Code) and can be exchanged for 1 Kg of Grade A Copper Cathodes each (standard future contract quality). Using this token, physical and financial traders, investors, and consumers alike will all now be able to more safely and efficiently trade copper under a single decentralized platform.
Blockchain Metal Company prides their new system on cost efficiency and simplicity, as it enables a trader to deal with fewer intermediaries and lowest fees as everything is done on the ethereum blockchain; BMC takes responsibility for the logistics, the customs and storage of the purchased copper for the ITO participants (until it reaches the end customer), which makes it tremendously simple for the trader to trade copper; BMC has indeed included the utilization of smart contracts for its ITO participants, as its known as the safest method for online deals via the ethereum blockchain; BMC also minimizes risk for the trader via elimination of operational risks that additional intermediaries create; Cu Coin, as ethereum blockchain is considered unhackable, will be the safest certificates for ownership of copper online.
Legal Framework
All information regarding the content of the warehouse receipt will be embedded in the smart contract code of the ERC-20 Token. The storage agreement between the Cu Coin MBX buyers and Blockchain Metal Company will be made according to German Law. The German Commercial Code permits the issuance of electronic warehouse receipts when the authenticity and integrity of the system are ensured. Crypto-assets and their smart contracts are unforgeable and considered to be unhackable satisfying the authenticity and integrity requirement of §475c IV HGB.
Trading of the Cu Coin MBX warehouse receipt is done as easily as any other crypto transfer and satisfies all requirements for a compliant change in ownership. Public IDs of ERC-20 wallets pose as a means of identification of the holder and private keys authorize transactions and replace signatures.
As warehouse receipts are not classified as securities under German jurisdiction (and most other jurisdictions around the world) other formality requirements typically required for a valid transfer of securities do not apply allowing for the trade of Cu Coin MBX on unregistered DEXs and other exchanges, and thus creating potential for high trading volumes across multiple marketplaces. Yet Blockchain Metal Company will be launching their own in-house exchange to prevent any liquidity issues after the launch of their first product.
Brilliant tool in connection with Smart-Contracts
Smart contracts on the ethereum blockchain allow trusted transactions and agreements to be carried out among distant parties without the need for external enforcement mechanisms such as banking tools commonly used in the physical trade of commodities (e.g. Letter of Credit). With Cu Coin as the connection between the ethereum blockchain and tangible copper, both payment and delivery obligations in a trade deal can be verified and executed a turn in turn, by programming a simple smart-contract, thereby replacing the need for banking tools.
Visit metalbx.com for further information, registration and for the initial token offering.