There is yet another new cryptocurrency, but with the name, “Bananacoin” can it really be taken seriously?? According to the company, “Bananacoin is a utility token based on Ethereum, pegged to the export price of one kilogram of bananas.
Every token produced by the company acts as a contract for the purchase of products to be created in the future, in this case, the bananas. Each Bananacoin represents a little over two pounds of bananas that promise to be grown on a plantation in Laos.
The team managing Bananacoin includes a Thai agronomist and two Russian entrepreneurs who have been growing bananas in the Vientiane province in Laos for three years now. The team plans to use the investments in Bananacoin to grow their farm from its current size of 100 hectares to 360 hectares during the next year and a half. The idea is a combination of cryptocurrency and crowdfunding.
The company grows the world’s most popular banana varietal, the Lady Finger banana, and sends them to China, where the bananas are in constant demand.
One cryptocurrency analyst explains, “Bananas, surprisingly, are a good investment. Over the past 7 years, the international price of one kilogram of bananas has increased by between 4 percent and 10 percent every year, making bananas a relatively stable investment.”
And because this company produces the Lady Finger banana variety, its Initial Coin Offering is even more special, because that type of banana isn’t constantly under attack by a fungus called Panama Disease. The bananas that most Americans eat, Cavendish bananas, are regularly threatened by this aggressive fungus. The Lady Finger bananas are a hardier variety. The company also shares that its bananas are organic.
As of Saturday morning, the company has sold 3,412,348 million bananacoin tokens out of a possible 14 million. Each token is worth USD $0.50. So perhaps this token will actually play a critical role in banana production. It will be interesting to see how well it does.