For a country that has 80% of the world’s rhinoceros population, many South Africans are concerned about the conservation of them. I mean, with 1,000 rhinos dying each year, I’d say it’s a worthy cause for concern. As a result, some enterprising Saffa’s recently launched a cryptocurrency made specially to aid in saving one of the proudest symbols of Africa. In this post, we will be looking into Rhino Coin and what it can do for Africa.
Founded by Alexander Wilcocks and Jacques du Randt, RhinoCoin (RNC) aims to give value to legal rhino horns on a 1 coin to 1 gram (of rhino horn) ratio. This will allow conservationists to unlock a new value from a stored asset that is currently without a legal market value. Consequently, there is an ongoing debate between the two opposing sides: pro-traders and anti-traders. The people who are pro-trading believe that these stockpiles of rhino horns should be sold. This will provide more income for the conservation of the rhino, putting a stop to illegal trade and poaching as a result
Rhino horns cost approximately $125 per gram on the international market. A single Rhino Coin is a fraction of this. Currently, all investors that purchase Rhino Coin on a 1:1 ratio not only add much needed short-term capital into the conservation of rhinos but in the event that global trade becomes legal, these investors could see significant returns by selling this horn internationally. But until then, domestic trade is the only option, so if the investor has the necessary permits they can redeem their coins if they wish.
Rhino Coin operates differently to most cryptocurrencies. With RNC, a horn owner will place their horn into the Rhino Coin system. This is done by legally selling it to Cornu Logistics. The horn(s) are audited, weighed and put in Cornu’s vault. One Rhino Coin is then generated for each gram of rhino horn through blockchain technology. This is their means of creating a distributed database free from corruption, with records able to be verified quickly and easily.
The horn owner gets 54% of the Rhino Coins. This gives them the ability to sell those tokens on the Cornuex exchange for cash. Also, they can choose to retain them in hopes the coin will increase in value over time. The other 46% of the coins are allocated to; administrative costs, building children’s homes and conservation foundations.
Both international and domestic buyers can buy Rhino Coin with South African Rand then trade them on the Cornuex exchange. Currently, their prices are fluctuating due to inconsistencies in the supply and demand of the coin.
Did you know that the average lifespan of a white rhino is 40 to 50 years? Help the White Rhino live its life to the fullest when you purchase Rhino Coin! https://t.co/VlIrOWqj4q#rhino #conservation #poaching #rhinocoin #cornuex pic.twitter.com/cyHPXPL5yk
— Rhino Coin (@Rhinocoin_SA) December 3, 2018
Both private Rhino owners in South Africa and government conservation agencies alike feel strongly that legal rhino horn trade could further incentivize rhino conservation.
Be that as it may, many conservation organizations cite a legal sale of elephant ivory from; South Africa, Zimbabwe and Botswana to China and Japan in 2008 as a reason not to sell Rhino horns. Similar to rhino horn; the international ivory trade is forbidden. But in 2008, CITES allowed a highly regulated “one-off sale”.
Despite China rolling out sophisticated safeguards in order to monitor and control ivory from this sale, it was unsuccessful. Several unaccredited stores and ivory-carving workshops popped up in order to take advantage of a freshly renewed consumer demand. However, there was a parallel illegal market that sprung up after this which was almost impossible to control.
Following this deal, elephant poaching and ivory trafficking went through the roof in order to supply these new illegal outlets. By 2011, poachers were killing around 15,000 African elephants on a yearly basis. Consequently, international pressure increased, and China chose to crack down on illegal trade, banning the domestic sale of ivory. Elephant poaching rates have dropped significantly since then.
Some speculators say that as buyers are able to purchase tokens from anywhere in the world; CITES could view Rhino Coin as a form of international horn trade and attempt to regulate it. After all, the treaty’s text regulates all wild species “as well as their derivatives”.
I don’t have a lot to say about Rhino Coin other than it is an attempt to get funding to support a private rhino farmer who is quite a controversial figure, but it’s not really mainstream conservation in any sense of the word. It will probably not demonstrate any traction in financial markets as time goes by
Tom Miliken of TRAFFIC, the wildlife trade research organization.
O Criodain of WWF states he wouldn’t bet on the legalization of rhino horn trade internationally or within China due to powerful global resistance. He followed this by saying Rhino Coin speculators may never see a profit.
On October 30, 2018, China announced; the ban on the use of rhino horn in Traditional Chinese Medicine will soon be over. However, they quickly backed down following a wave of protest from rhino conservation organizations.
On November 12, 2018, China announced; “the detailed regulations for implementation” of the October legal changes had been “postponed after study”, stating that the tight ban on the use and sale of rhino horn is still in place.
The rate at which rhinos are dying in South Africa is on the decline this year due to better anti-poaching measures. There have been reports of several incursions into reserves, and poaching attempts are slowly continuing to rise despite this. This is due to transnational criminal syndicates still maintaining their high demand for the horn. Meanwhile, both government and private stockpiles are steadily growing, which only increases the incentives to sell.
This article is intended to educate and should in no way be seen as investment advice or an enticement to use the ice3x.com platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.