Shipping Startup 300cubits Suspends Its Blockchain Operations

As industry news outlet The Maritime Executive reported Sept. 30, Hong Kong-based 300cubits is believed to be one of the first firms to apply blockchain technologies in shipping.

Blockchain shipping startup 300cubits suspended the operations of its booking module and the circulation of its TEU token.

Per the report, 300cubits’ system began accepting trial shipments in March 2018 and was launched into live production in July 2018. It is also claimed that its TEU tokens are still one of the more recognized digital assets in maritime space.

Low transaction volume

Still, low transaction volume – only a couple hundred containers have used the system – made the operation unfruitful.

The greatest marketing impediment for the company was reportedly the lack of clarity in regulatory regimes concerning crypto assets, which pushed users away. A partnership with major ocean trade platform INTTRA was called off at the last moment because of this reason, according to the article.

Suspend and burn

Now that the system was suspended, 300cubits will burn 75% of its TEU tokens, which have not been sold yet, and will burn more in the future as they circulate back. Still, the company points out in a statement that the project has seen interest from major industry players:

“The positives are that the system has had participation from the largest shipping liners e.g. Sealand of Maersk Group, CMA CGM, MSC and Cosco, while the 300cubits have gone the length in its discussions with the rest of the top 10 container liners about running trial shipments on the system. More than a dozen shippers e.g. Li & Fung Logistics, BASF, JF Hillebrand, Esprit, Mitsui Chemical, REWE etc have tried the system.”

As Cointelegraph recently reported, Vakt, a blockchain-based post-trade platform for commodities, has signed a memorandum of understanding with essDOCS, a firm that develops paperless trade solutions, to put European shipping on the blockchain.

Shinhan Bank Teams With Kakao’s GroundX for Blockchain Security Boost

Shinhan, one of the oldest and largest banks in South Korea, has partnered with two fintech firms to build a new security system using blockchain tech.

For the effort, the bank has sign an agreement with GroundX, the blockchain subsidiary of messaging app provider Kakao, and blockchain developer Hexlant, according to an article from The Korea Times on Wednesday.

The deal will see the three companies jointly develop a private key management system for use within Shinhan’s systems, with Ground X to provide the underlying blockchain-based platform, and Hexlant to create infrastructure that will include an “anti-cracking program”, as per the report. The system could see testing as soon as October.

“Blockchain technology has gained attention from the financial sector for its advantages, but financial firms have experienced difficulties in applying the technology to their system”, said an official at the bank. “Shinhan Bank will provide a convenient user-friendly interface under the deal with Ground X and Haxlant.”

GroundX notably launched its own blockchain for use across Kakao’s services in June. Called Klaytn, the network is claimed to be 150 times faster than ethereum (though is a hybrid private blockchain with permissioned nodes that can be double checked by public participants), and has its own cryptocurrency called “klay.”

In May, Shinhan launched a blockchain platform to verify items of proof required for credit lending, such as qualification or certification documents, seeking cost and speed improvements.

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