Q&A with NagriTech’s Co-Founder Andrey Samolyotov
Bitcoin has become a geo-commercial phenomenon over the course of the last few weeks. Pundits, analysts and investors have rode the wave that has seen meteoric rises and near free-falls in valuation, with no clear prediction as to what the future holds within this tumultuous frontier market.
Perhaps one glimmer of sustainable hope lies in pegging the token itself to a sector which no doubt will maintain its value for generations to come. Stocks rise and fall but we’ll always need land. Agro may be the answer to Bitcoin and one such enterprise entering the initial coin offering (ICO) arena is leveraging agribusiness and forecasting substantial monetary growth.
To understand this issue better, I reached out to Andrey Samolyotov, the Co-Founder of NagriTech. Our interview, conducted over email, has been edited for flow, is below.
What were the motivations for NagriTech to venture in to the Initial Token Offering (ITO) marketplace?
As we know, the world is trying to adapt to organic products as more and more contemporary chemicals are used in agriculture and agribusiness; it has been proven by many European researchers that some of the contemporary chemicals that are used in modern-day agriculture can cause cancer and other diseases. By 2050, the global population will account for more than 10 billion and we all want to eat and drink responsibly and live long lives in doing so.
Food security is a major challenge, even today, and with a lack of high quality fertilizers, humanity will become more exposed to cancerous diseases.
Conversely, thanks to new methods of agriculture and by way of new NagriTech Products, we can produce better food and we can save millions of lives in the process.
As innovators, we foresee our ability to build this business by thinking ahead of the curve and investing in what we call – ‘NagriCoin.’
The key advantage of NagriCoin is that it is one of the few ITOs in a real sector of the economy. The basic asset of this token is the Nagri product itself, which has been in development for more than 7 years. Nagri is the newest organic composite formulation of micro-elements and antioxidants that stimulate plant growth, which can find the broadest application in the agricultural and plant cultivation sectors around the world, increasing yields and improving the quality of almost all the crops it touches.
Nagri can be attributed to both the sector of organic fertilizers and the sector of microelement fertilizers, the latter of which currently finds itself in the rapid growth phase of 8.2% annum.
During the past seven years, $5 million was spent on active research and field tests to gauge Nagri’s effectiveness. Tests were conducted in more than 10 countries, including Brazil, Uruguay, Pakistan, Turkey, Jordan, Italy, Ukraine and the Russian Federation. The research involved both large private agricultural holdings, as well as state research centers and laboratories of various countries.
The results of testing showed that Nagri increases the yield of different crops from between 10% to 30%, depending on the geographical area of cultivation and weather conditions. At the same time, an increase in yield was observed with the addition of Nagri to almost all known combinations of fertilizers and plant protection products.
You can expect by way of investment in NagriCoin not only stability but wise, lasting growth.
What are the challenges and opportunities inherent in ITO investment?
After shopping the project for a possible IPO, the company realized that it’ll need almost $1 to $2 million dollars in legal and administrative work to launch. None of the investment bankers will guarantee a positive result in raising direly-needed funds. The challenges of an IPO are therefore obvious – the company has to spend a lot of time to find the bridge financing to do the IPO, spend $1 to $2 million dollars to get it started and then there is no guarantee of success.
ITOs are a significantly cheaper, crowdfunding-driven solution and for us, the choice was clear. We need to maintain very affordable costs, especially taking into consideration that farmers need long term financing and usually defer the payment for 9-12 months. Our distributors ask us for up to 12 months deferred payments as well not taking into account 30 days of shipment, and if the inflation is too high and they don’t have access to dollars, then we have a problem. Cryptocurrency is therefore key, it’s going to change the game once and for all. No more dictation banks and Central governments that can turn the interest rate whenever they want.
The Nagri project provides an opportunity to invest in NagriCoin’s tokens (a viable crypto currency), issued to finance the development of the global market agricultural sector. NagriCoin investors will be able to buy tokens at a significant discount, which will enable them to ‘fix the spread’ as soon as the tokens sale is initiated.
Is there an inherent social impact or emerging market benefit to ITO involvement?
NagriTech is an international company, and we target the global agro sector. We have many currencies across the globe involved in this process, many different banks, payment systems, political issues and inflation problems.
For instance, inflation rates in Venezuela are just insane, we’re talking about thousands of per cent per year and this country heavily relies on agriculture. Brazil, India, Mexico and Peru, all these countries have problems with inflation. I can continue on about another 100 countries at least.
Cryptocurrency was dictated by flagged issues from emerging economies, in some cases in which farmers have difficulties being US dollar or Euro-dependent because of high inflation and regulations / limits imposed by central banks. Again, Venezuela is one of the worst cases here, as they do not have access to the US dollars at all because of US sanctions. However, the people are hungry and need our product we’ll become one of the only options because of crypto.
Of course, Nagri will offer to our clients the option of making a payment in Fiat or cryptocurrency; these are smart contracts will make all deals transparent and instant, with block chain also resolving the many security issues related to cyber-attacks.
We think the ‘real’ financial sector will be coming in heavily into the ITO market in the next few years. That will help to fund small ‘real’ sector companies, which on the other hand will boost a global economy.
Where would Executive Leadership predict/forecast the Nagri ITO to valuate in one years’ time?
In the agro sector, to evaluate a fast growing company becomes a bit challenging, as we allow our farmers to defer the payment from 9-12 months, In addition, we will have to produce enough product to meet the demand of our wholesalers and distributor networks. We think that for the first year we will be busy facilitating supply to match demand. We plan to deliver first orders within 6 months’ time, as it takes some time to assemble filling lines in two the most lucrative markets, Brazil and EU.
According to preliminary estimates, the estimated sales volume of Nagri by the end of the first stage should reach, in the most likely scenario, approximately 12 million litres in Brazil and 6.5 million litres in the EU. Thus, Nagri sales volume at the expected average selling price of $15 per litre will amount to approximately $255 million.