The First Crypto Token Backed by Food Factory in Russia

Apr 06, 2017 at 13:53 // News
Nina Lyon

The People's Cooperative in St. Petersburg, Russia, plans to launch an ICO to finance food factory and stores.

The People's Cooperative "Family Capital", which has large assets throughout the country,  plans to release its Ethereum-based token, called FC-coin (Family Capital Coin) on April 22. 

The chairman of the cooperative, Natalia Verkhova, pointed out the problem of getting a loan for small businesses at the bank. According to Verkhova, it is a rather complicated and inconvenient process in Russia. The cooperative has become interested in blockchain technology and cryptocurrency as one of the quality tools for raising funds. She commented to ForkLog: 

“Recently, we turned our attention to the blockchain technology and cryptocurrencies. At the moment, the release of the project's tokens is one of the high-quality tools for raising funds that can be used to fund construction and development. For businesses, getting loans in banks is quite inconvenient, besides, they are difficult to obtain. Therefore, we plan to raise money in several ways: from investors and from shareholders, as well as via cryptocurrency.” 

FC-coin may become the first token backed by the physical assets of the cooperative - a food factory and stores. Natalia Verkhova commented:

“To date, we have assets – like the largest dairy herd in Karelia. We are just planning to use our milk for the food factory, which we are about to build. In fact, we are experiencing a second birth and are going to build production, open stores, feed people with delicious and affordable food.” 

This is one of the first steps to using the ICO system to attract money to the traditional sector in Russia. Nobody can forecast how it will be realised. 

“There is no legal mechanism to support such kind of operations with cryptocurrency and Blockchain in Russia”, - stated Natalia Verkhova. will keep you updated on the progress of the project.

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