How to fight Russia uncertain cryptocurrency regulations and build an agricultural cooperation on blockchain? LavkaLavka and its BIO cryptocurrency show a good example.
- Plan to exceed 3000 partners by the end of 2018
- 1 000 000 of already released BioCoins
- Additional emission of coins every year
- Cooperation with the virtual bank in messengers (Talkbank)
- Strong ethical principles
- Legal status and freedom of functioning
What is important to know about BioCoin and biocoin price?
BioCoin is an international blockchain platform with its own cryptocurrency BIO – a mutual settlement system, expanding with the number of business partners. BIO spread is created with the help of a loyalty system: buying something in LavkaLavka shops or its partner businesses, you get crypto cash back in your cryptowallet.
The aim of the project is to create a large friendly ecosystem for small businesses, local groups, farmers, fresh products sellers and their customers.
According to the latest statistics, BioCoin is supported by more than 50 companies and businesses and plans to exceed 3000 partners by the end of 2018. The company aspires to expand the scope of its loyalty program to worldwide. Right now, Russia doesn’t recognize BIO as cryptocurrency, security paper or a mean of payment, it’s not legal ico in Russia, unlike some other countries.
BIO emission is under LavkaLavka’s control. The general number of released coins is 1 000 000 and every year an additional emission takes place (5% of the general amount every year). Company’s public face belongs to Boris Akimov – a founder of Russian farmers’ cooperative already mentioned above as an issuer.
BioCoin ethical principles:
- Support organic agriculture;
- Respect the environment;
- Promote planet’s sustainable development in accordance with the green economy principles.
BioCoin activity: partnership, legalization, perspectives
Last September, anticipating the joint cooperation with BioCoin, LavkaLavka partnered up with Bitwallet to issue debit Mastercard cards with cryptocurrency logo on them. Nevertheless, this cooperation didn’t take place de facto. As Boris Akimov said, the obstacle arose from the European Union ruling in autumn of 2017:
When the European Union issued a statement that crypto cards can be held only by its residents, it was not clear what to do and cooperation was suspended. (Boris Akimov)
In October of 2017 Elina Sidorenko, Russian State Duma cryptocurrency expert, promised to provide legal support to new the cryptocurrency. Later, a group of legal experts also worked on BIO legalization case and according to Boris Akimov: “they did it well”.
As he wrote on Facebook: 22nd of November, 2017 became the day BioCoin was recognized as a legal token. A group of experts jointly concluded, that BioCoin is not a stock, but just a part of LavkaLavka’s bonus program, as it does not need to be invested and its holders don’t get any profit. At the same time, experts recommended to warn BioCoin purchasers about the possibility of token price-waves regardless of LavkaLavka control.
It is still unclear whether to call BIO a “traditional” cryptocurrency or not. Right now it is mostly owned by crypto enthusiasts and speculators, but according to Boris Akimov’s confident predictions it will become a crypto loyalty programme for ordinary people.
Our aim, in a word, is promotion. (Boris Akimov)
LavkaLavka’s ICO took place between 1st of January and 18th of February, 2018 and as the result they attracted more than $16 million. Thus, the company has exceeded the maximum amount of gathered money making more than $15 million. Right now BIO market price isn’t high:
From one hand, LavkaLavka isn’t a big business, its liquidity is not enough for biocoin. From the other hand, there are more speculators and crypto enthusiasts who bought BIO during the ICO, than those who receive crypto bonuses. The exchange rate changes, the price mostly falls, sometimes it grows. It is due to the fact that cryptocurrency market’s general situation is deteriorating, though we haven’t yet connected ordinary people who will use biocoins in the loyalty system. (Boris Akimov)
In fact, the prosecutor’s office started checking the cooperative since the forthcoming BioCoin release announcement.
On 31th of January the local prosecutor’s office asked the court to block the BioCoin ICO webpage. The prosecutor claimed that the co-op encouraged cryptocurrencies’ usage for the purchase of goods and therefore violated the Russian law, that views ruble as the only mean of payment.
A request to block the cooperative newspaper website Exmo.me exchange and the cryptocurrency exchanger prostocash.com was also received, but In February the Lefortovo court separated the claims to the co-op from others to later dismiss the complaint.
On 17th of May the launch of the BioCoin and Talkbank co-branded cryptocurrency card in Russia took place. This card allows to pay for all the goods in rubles and biocoins around the world. Moreover, BioCoin is a commodity itself and can be used as an exchange for the bonus points in the BioCoin’s loyalty system. If you order a Talkbank BioCoin card before June 15th, you will receive a gift of 500 biocoins.
In fact, if you can buy and sell biocoin in the Russian bank chatbox (in this case, Talkbank – editorial note), meaning that it is recognized as a legal coin, because this is the right to require a bonus point. (Boris Akimov)
The cooperation with Russian Talkbank, the first virtual bank operating in Telegram and Viber messengers, became an alternative to the previous attempt with Bitwallet.
At the opening of a new LavkaLavka shop on July 6th, Boris Akimov mentioned a contract signing with an unnamed company that will likely increase BIO liquidity. According to the Facebook announcement made by LavkaLavka’s founder on 7th of July, BioCoin wallet was added to App Store. He wrote that this action was preceded by a lengthy process of moderation.
Boris Akimov also said a few words about on-going perspectives and plans of the BIO project:
Next, we need to find the resources and forces to do what we have promised: to make the working infrastructure, to attract ordinary people, not only crypto enthusiasts, to make different businesses join our loyalty system. (Boris Akimov)
An outside perspective on BioCoin
It is still unclear if BioCoin fully becomes a part of bonus programme in the future or continues its development on the crypto market. The loyalty programme makes a traditional vision on digital coins more complicated and raises the following questions:
- How will BioCoins market capitalization be counted with the parallel accrual of bonuses to the Talkbank & LavkaLavka cards’ holders?
- Following the previous question, how will BioCoins rate be regulated?
- Is 5% of additional coin emission enough for a stable crypto business functioning? Will these coins be distributed in the frame of loyalty programme or bargain on the market?
- Doesn’t loyalty programme mean the BioCoin is centralized in the hands of the different businesses?
And last but not least, the legislation as an issue: what status does BioCoin have in the Russian legal field and how can it be used as a mean of payment if cryptocurrencies don’t have this function in Russia?