300cubits has suspended its blockchain initiative geared towards the shipping industry.
Hong Kong-based 300cubits created a booking deposit module in the form of the teu token, a cryptocurrency based on the Ethereum blockchain network, in 2017. From March 2018, the company started accepting trial shipments and launched live production in 2018.
However, the system failed to garner enough commercial interest, despite participation from some of the largest shipping companies. According to 300cubits, Sealand, CMA CGM, MSC and Cosco have been involved in the company’s initiative. Li&Fung Logistics, BASF, JF Hillebrand, Esprit and Mitsui Chemical are just some of the shippers that have used the system, added 300cubits.
“The lack of clarity in regulatory regimes surrounding digital currencies has proved to be the greatest hurdle in the 300cubits’ marketing efforts,” said the company.
“Many potential users simply shied away from trying, being not sure about what regulatory measures the authorities may take. A potential partnership with INTTRA, one of the largest shipment booking portals in the world, had to be stopped at the eleventh hour due to regulatory concerns.”
300cubits added that the lack of liquidity of the teu tokens and the volatility of all cryptocurrencies in general also cast a constant doubt among the users on whether the value of the tokens could be realised.