Another oil backed cryptocurrency is hitting the market this month as the Initial Coin Offering (ICO) for the new Aramco coin gets underway this April 24th. Unlike the Petro coin being offered by the Venezuelan government, this commodity backed digital currency doesn’t have a government behind its creation and management. Aramco is a private company based out of the United Kingdom and Saudi Arabia and they’ve created the ARM token in order to allow people to invest in a cryptocurrency that has some intrinsic value and also to allow people to easily trade on the live price of Brent crude.
ARM as an Investment
One of the key features of using ARM as an investment is the fact that each token is backed by a real barrel of oil. This, as is with other commodity backed cryptocurrencies, means that there is always a base minimum value to the digital asset. An ARM token can never be worth less than the value of the barrel of oil that it represents. According to Aramco, this makes the coin a less volatile investment than free-floating digital currencies and, therefore, a more secure asset. So where is all of this actual oil coming from? Well, this one is pretty easy. Aramco is the second largest oil producer in the world and they produce up to ten million barrels of oil every single day. This pretty much ensures that they will never run out of oil to back their digital coin.
Along with the proposed security of the investment, owning and holding ARM tokens has residual benefits. Aramco is guaranteeing that the price of ARM will increase by at least $0.01 USD every single day for life. That kind of return isn’t life changing money, but it is, at the very least, financial movement in the right direction.
Trading with ARM
While holding ARM tokens as an investment is certainly one of the encouraged uses of the Aramco offering, the company seems to be more heavily invested in the idea that people will be using the coin to trade on the price of oil. In fact, they’ve developed a slick online trading platform that will allow ARM owners to trade against the live price of Brent crude on the London Stock Exchange. Traders will pay fees just as all traders do in all markets, but Aramco is putting incentives in place to ease the burden of speculators. These incentives are offered on a sliding scale and allow investors to receive between a 50% and a 90% discount on their fees.
Aramco (ARM) Initial Coin Offering Details
As mentioned earlier, the Initial Coin Offering (IC0) for the ARM digital coin will begin with a pre-sale on April 24th, 2018. The pre-sale will run until May 8th, 2018 or until 150,000,000 ARM coins have been sold. The incentive for investors during this time is a 15% bonus on all purchases. As ARM is an Ethereum based digital currency, it can be purchased using ETH and subsequently traded on the Aramco digital trading platform.
If you would like to get a complete picture of the ARM token and the plans that Aramco has made for the digital trading platform, you can read the ARM white paper or onepager.