The ZrCoin is a digital asset that is supported by the production of ZrO2, Zirconium Oxide. ZrO2 is used in the production of many products ranging from ceramic kitchen knives to applications in dentistry.  ZrO2 has the highest melting point of any of the ceramic metals and is therefor used as a material to line high temperature furnaces. ZrCoin is incorporated in Russia.

ZrO2 is most commonly produced from zirconium sands.  The ZrO2 team has developed a process to produce the compound by recycling cheap and available industrial waste.  This results in synthetic zirconium oxide with a concentration of atleast 66%.

ZrCoin Initial Coin Offering

ZrCoin plans on building one or two factories where they can produce their synthetic compound.  In order to make this happen they began offering their tokens on May 11, 2017 through an Initial Coin Offering (ICO).  The ICO details are as follows:

• ICO began: May 11th, 2017
• ICO ends: June 9th, 2017 (or when investment cap is reached)
• Minimum Investment Goal: $3.5 million
• Investment Hard-Cap: $7 million
• ZrCoin price during ICO: The cost per coin starts out at $1.40 for first day investors and goes as high as $1.55 for the final days of the ICO.

The minimum goal of $3.5 million is based on ZrCoin’s estimated price to complete construction of their first facility.  The $7 million hard-cap is to facilitate the second factory.

ZrCoin Project Timeline

The first step in the project was the ICO as mentioned above.  The company guarantees that any token holder can ask for their money back at any point after the ICO closes.

ZrCoin projects that production of a state-of-the-art green manufacturing facility will start after the ICO is completed.  They expect that the production line will be completed within 6 months of the close of the ICO.  They are setting up a system where investors can watch, via webcam, the progress of the facility build.  They plan to begin the production of the zironium oxide no later than 7 months from the close of the Crowdsale.  Once production begins, the product will begin shipping to buyers immediately.

ZrCoin has commited to begin buy back of the ZrCoins at the market price of 1 kg of zirconium oxide per coin, no later than 8 months after the ICO closes.  They will buyback at least $400,000 worth per month.  Investors also have the option to actually receive the physical product if they choose.

Challenges Facing ZrCoin

There are some challenges facing ZrCoin.  The two major challenges are the competition and the market value of the zirconium oxide once it is produced.  As we mentioned above, most of the ZrO2 is produced worldwide from zirconium sands.  The company will use their proprietary procedure to produce theirs from recycled materials.  They are not the first company to do this as their are a number of companies in the United States that recycle materials to produce the product as well.

The second challenge is related to the market value of the final product. The company states that they are going to sell their product at a rate of $2,800 per ton.  This is much higher than the market has shown since 2015 which is around $1,100, however this price reflects demand in the US market so it may not be indicative of what ZrCoin can sell their product for.

You can read about the team behind the company on their website.

ZrCoin Conclusion

The ZrCoin is definitely one of the more unique offerings we have seen in the digital asset / ICO market.  It may offer a quick return to investors, as the company plans to buy back starting 4 months after the funds are collected.  We will have to see how realistic the factory prooduction timeline is.  They will have to overcome the price issue and gain market share from their competition.

Interview With The Creators Of ZrCoin