Shipping assets are worth over $1.5 trillion in the world right now. Historically shipping companies have been one of the biggest and most profitable setups around the world but due to the rapid age of consumerism and ever-increasing demand that they alone cannot fulfill, big banks and financial organizations have become much more powerful, controlling many crucial stakes in the big shipping companies. Also, normal people with lower investment caps couldn’t become a part of the shipping industry as smaller shareholders aren’t just viable with the current centralized model.
This is where decentralized ship-owning and operating marketplaces come in. So far, the space is occupied by Shipowner.io, a new blockchain-based decentralized shipping market that aims to solve key industry issues that are hampering its growth, transparency and profitability due to the rising intermediary costs of shipping.
How does Shipowner.io aim to solve this problem?
People from around the world especially involved in crypto circles can participate in a capital structure that is backed by real-world maritime assets and their wide range of services. In order to encourage participation and have as many individual number of investors and shareholders, the participation is divided into small fractions of the total equity depending on the actual shipping asset. These fractional assets are then tokenized and offered to the public through the platform and they can then invest in them. So, basically, the marketplace is democratizing the way ships are owned and operated around the world.
Asset diversification and superior liquidity are possible outcomes of this approach that have always been serious problems for the shipping industry and furthermore, the platform allows greater transparency and greater share for investors in the profits as compared to the conventional market. The cumbersome moves like actually physically buying or selling ships or renting them from other ship capitalists is not needed in a token system backed by actual physical assets on the ground (water?).
Asset and Tokenization
Tokenization of the actual assets is a seemingly difficult task but the Shipowner platform has provided a straightforward solution for us all. First, an initial valuation is done and after that, with the help of cutting edge Artificial Intelligence-based algorithms and risk reward models, final terms are agreed upon and then the asset is tokenize and ready to be up for grabs for the public. Shipowner platforms can then buy these tokens using SHIPS, the standard currency of the marketplace. Once sale has been complete, the funds are transferred to the ship owner and that part of the asset if officially the property of these shareholders. The tokens for any asset can be traded on the online exchange which is set to be launched in 2nd quarter of 2018.
The shipowner marketplace is the brainchild of a dedicated team made up of experts in the shipping community and have experience in operations and other key areas of the industry so it is not a fluke for them but a genuine futuristic approach to one of the biggest, most underrated industries in the world.
They have already accounted for an excess of $200 million for marine assets and services and they are aiming to have over $14 billion in these assets by as early as 2023.
To learn more visit the Website: https://shipowner.io