CargoX - A Power Player In Logistics Via Blockchain And Its CXO Token
Source: Pixabay

By leveraging blockchain technology, CargoX specializes in document transfer solutions that help logistic companies improve profitability and gain a competitive edge in the market. Logistics is an essential part of supply chain management. Although it looks lucrative, many companies miss a significant percentage of the profits due to inefficiencies, unnecessary expenditures, miss labeling, miss shipping, and other facets involved in the traditional system. 

CargoX & Bill Of Lading

Within logistics, the Bill of lading ( BOL ) is arguably one of the most important documents during shipping. When a BOL is complete, it legally shows when a carrier has received freight. The best way to think of it is a contract for the movement of cargo. Hard copies usually pass through the producer, logistics company, shipping carrier, buyer, agent, and other parties. While taking 10 days on average to pass through these entities, it can be vulnerable to fraudulent activities, damages, and misrouting. On the other hand, the Bill of lading accumulates over $5 billion a year in courier costs.

To overcome this, Blockchain technology has been an efficient and cost-cutting solution for companies to come up with organized operations in various industries – especially logistics. 

 

“CargoX is an ethereum based Blockchain Document Transfer (BDT) platform designed for secured, tamper-proof and confidential transfer of documents.”

The team has come up with Smart B/L ( an electronic bill of lading ) for logistics and supply chain, reducing the time it takes to facilitate deals between parties. This is an electronic copy of the Bill of ladings that are created and managed with smart contracts.

Other parties in the process can see data once it’s created and it cannot be changed or hacked. It’s an exceptional service within a single tab system that can be used by individuals or businesses.

CargoX Milestones

Back in 2018, CargoX raised over $7 million within 7 minutes via an initial coin offering. Unlike most ICO’s from 2017-2018, CargoX is showing immense growth and utility on a global scale. Last year, CargoX became the 1st Bill of Lading provider on Ethereum to be approved by the International Group of P&I Clubs. This group is affiliated with providing liability cover ( protection and indemnity ) for around 90% of the world’s ocean-going tonnage.

CXO Token

The entire CargoX ecosystem runs on CXO tokens, which is an ERC20 Ethereum based utility token used as a core part by sending, archiving, changing ownership, and also as a payment solution for logistic services offered by the partners. As the core part of the overall CargoX’s business model, users can leverage CXO tokens to utilize and issue the cargo smart B/L and can be used for all services within the ecosystem.

Major Utility Aspects Of CXO  

Logistics and supply chain is the perfect application of blockchain technology. CargoX’s utility token offers a variety of services as a means of payment to the CargoX ecosystem. Even holders of CXO tokens can leverage advanced logistics services.

The intrinsic utility of the CXO token is derived from core interactions, assisted by CargoX protocol services as following:

1. CXO tokens are required to obtain access to the special parts of the CargoX smart B/L exchange protocol. It provides special discounted usage fees and services provided by partners.

2. The CargoX Smart Bill of Lading costs exactly $10 and that will be converted to CXO tokens. The initial owner who creates the smart bill of lading pays for the process. Every other party involved uses the technology for free.

3. CargoX has a transparent CXO credit balance system, which will not force non-crypto users to transact in cryptocurrencies. Instead, they have nothing to do with cryptocurrencies other than swift or traditional payment methods.

4. CargoX’s decentralized applications facilitate companies with a variety of services discussed above. Also, the API integration will help companies who need certain services throughout the ecosystem enhancing the utility of tokens.

5. CXO tokens will be distributed through incentivization mechanisms for focusing on user growth, product development, advancements, adoptions, and personalization. After the $10 is used to buy the Bill of lading, 70% of that ( in CXO tokens ) are burned and removed forever. This is a high burn rate and should be good for inflation as business ramps up. 

Apart from this CargoX is one of the selected proof of concept providers for the FIATA e-FIATA Bill of Lading (2021) and the company is an authorized blockchain service provider to Misr Technology services (MTS)  which operates with the Egyptian government.

Egypt is one of the top countries in maritime logistics. With its new custom laws for all cargo inbound to Egypt on 1st July 2021, the Government of Egypt has made mandatory ACI declarations. Under the mandate of the Ministry of Finance of Egypt in 2020, MTS set up the National Single Window for Foreign Trade Platform ( Nafeza ) and CargoX is authorizes as the blockchain service provider for registering and transferring the shipping documents.

CargoX Price Chart

According to Coinlore, CargoX is the 5th largest supply chain/logistics token in crypto with a market capitalization of $59.6M. VeChain, the power player in the space, has a $6B market cap. If we look at the chart below, we can quickly see the explosive growth in CargoX ( CXO ) over the last year. The token has surged ~ 1,9996%. Despite VeChain seeing parabolic growth of 1,015% over the last year, CargoX has outperformed the market leader. This is quite impressive, especially since CargoX has yet to be listed on popular exchanges like Binance or Coinbase.

CargoX price chart
Source: CoinGecko

Summary

CargoX has come up with ideas that are demanding and innovative to use as a solution for inefficiencies in supply chain & logistics markets. The team is heavily focusing on partnerships rather than marketing, which we see as a momentum driver moving forward. As discussed above, despite CargoX working with the Egyptian Government and showing real utility, their native token ( CXO ) is still not listed on prominent exchanges. It will be interesting to follow the maturation of CargoX given the partnerships in place.

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