An enterpriser, a developer of the idea, may find it difficult to attract investments in a venture project to get it started without losing control over their technology at the same time. On the one hand, startupper can address the bank, which generally doesn't have any intensions to participate in the authorized capital. Nevertheless, a credit organization only provides funding against assets. In Russian realities, the assets market value should double the amount of funding. On the other hand, investors, business angels are ready to invest into the realization of the project, yet they demand from 50% up to 80% of their shares in business. By accepting such an offer, developers of the idea mostly turn into managers working for hire. All in all, one can't really avoid the classical financing scheme in our country, though in case of venture projects there is a possibility to get started with the help of new instrument – ICO.
The ICO (initial coin offering) mechanism is an instrument of attracting collective investments modeled on crowdfunding at the expense of issuing and selling its own cryptographic tokens (coins) on blockchain platforms.
Before, not a single project, based on ICO, had any relation to the real sector of economy. Our idea to update blockchain option towards the needs of the industrial sector was the first of its kind in a worldwide practice.
ZrCoin project was organized for attracting funds with the aim of building an innovative zirconium dioxide concentrate factory. Usually, cryptocurrency within ICO is assured against expenses on mining or demand on itself; sometimes it correlates with some currency or gold. Though ZrCoin's tokens are assured against final products: one coin's cost is the same as of 1 kilogram of zirconium dioxide produced by us.
We plan to launch zircon scrap recycling plant within Magnitogorsk (Chelyabinsk region) industrial platform. With the use of unique technology, we will obtain zircon concentrate and synthetic slag-forming mixture when recycling 1 ton of zircon refractories scraps. The monthly production volume will reach 400 tons of concentrate and 100 tons of mixture. The idea hit us in spring of 2014, and after it within two years we have been making researches and developing technologies. The market demand on zirconium dioxide is high because it is used for producing ceramic (including the field of prosthesis), lightning equipment and refractories as well as it is used in the field of stove building.