My understanding for URO in the market place is, to reduce the Banking charges and fees and time delays that bank takes to issue the LC. According to 1 report by GES it was saving them around 100K plus on each transaction.
So what does GES do with the URO that has a current value of $4? it holds the URO (5yr plan"NEIR report") and builds confidence in the URO structure until it meets the market value, then sells or does whet most of the other "bigger" companies do, locks it in the bank and barrows 10X against it's current value of $300=1 URO....
URO actually makes these international companies look good ("world first", "helping farmers" "funding schools" ..."), they use it as there marketing tool "helping farmers in third world countries" most Gov. love all this and hence GES gets more tenders...Although it seems like GES is losing $3Million on every transaction, the Fact surrounding these "Fat boys" is actually, they make 20-30Million on every contract and with URO they are getting more contracts and tenders..."GES Pakistan office most active when URO hits the Markets"
I really do not think companies like GES care much about losing 3Million now and getting 30Million within 5years. It is great for us as we know 1URO will hit $300
Ok but it still doesnt seem like enough. They will still have to suffer the losses from however much URO is bought up before it reaches the FIAT/UREA price and the only amount of 'profit' being made would be however much they dont have to pay in banking fees, which the article says is paid by the importers anyways. They are also still going to have to sell the BTC they receive, and pay the banking fees when they buy more UREA.
The OP also talks about how much it hurts the small farmers but they have a minimum order of 12 500 mts.
Since it seems like the only benefit is the banking fees, why didnt they just do a 100% premine and offer to sell and rebuy the coin from their website in exchange for the UREA at a fixed price?
Uro should, over time, help stabilize the price of urea, which is highly volatile.
And if it doesn't stabilize the overall market, it still lets the participants stabilize their own prices. They can determine when to buy or sell uro, and do so in a way that's advantageous to them.
How will it help stabilize the market? The people involved cannot afford to sell URO at a lower rate than the FIAT/UREA otherwise someone will just constantly be profiting off of them.
It will only ever be advantageous to the people buying 12 500 URO at a time which means the companies involved with this will just be constantly losing money.
It wouldnt make sense to buy URO in the hopes that the price of UREA will go up unless you want to day trade fertilizer.
Show Posts
