Sand Coin was (is?) a project that aimed at financing a sand quarry in Russia and offer construction sand as an investment product. We don’t exactly know what happened to the project, but it doesn’t look good.
Gold, silver, crude oil, natural resources have long been used as investment vehicles. They are rare, and in demand, which makes them attractive from an investor’s point of view.
What about sand? Yes, sand.
Sand is a major component of the earth’s crust composition. So it’s not rare, and not in demand. Thus, not exactly an attractive investment vehicle.
Wrong! At least if you ask Ruslan Pichugin, former CEO of Sand Coin. While sand might not be rare in Hawaii, it certainly is in Russia.
Why Sand? Sand Coin’s investment proposition
Sand Coin is not just about any kind of sand; it’s about high-quality construction sand. This sort of sand is being used for glass making, but also as an aggregate for concrete. With the construction boom around the globe, high-quality sand has become sought-after, especially in Russia.
The Sand Coin whitepaper reads: “Moscow and the Moscow Region are one of the most ineffective areas in terms of transportation infrastructure and logistics. Millions of people are constantly facing congested highways and motorways, which influences business development and the ecological situation in a negative way.”
Moscow needs more sand. Thus, the goal of Sand Coin was to raise funds to build a sand mining site just 60 kilometers from Moscow.
The ICO: One token equals one square meter of sand
The entire quarrel consists of 3,400,000 square meters of sand. The company projected it would take 13.5 years to exhaust the whole facility. Afterward, it could be reclaimed for fish farming.
One Sand Coin is equal to one square meter of sand. The token was issued at a price ranging from $0.95 to $1.35. The market price for a cubic meter of sand reaches up to $5.30. Thus, the Sand Coin team expected significant growth in value per coin.
After the ICO: Sand Coin disappeared quietly
So far, so good. The concept doesn’t sound that bad. The execution, however, was not exactly impressive.
Sand Coin closed the ICO in October 2017 and reached “the soft cap and more,” according to Pichugin. Neironix reported the total raised at $1,353,907.
Then it became rather quiet. In September 2018, Sand Coin issued a statement citing the reasons for their challenges: Unscrupulous contractors and competitors threatened to sue Sand Coin and “shady people tried to extort money” from the company. And of course, the crypto market crashed.
But the team remained optimistic, “We know we can follow through. And if you don’t believe in us and want to leave a snide or angry comment, please just sell off your SND tokens.”
The latest announcement then came in December 2018: “2018 is coming to an end. Unfortunately, it was not the best year for our project and for the whole market. We will continue to struggle with all the difficulties and challenges that lie ahead […] Live long and prosper and may the force be with you.”
May the force be with you?
Since then, it has become very quiet around Sand Coin. The website is still online. Are you guys still out there? Does anybody hear me?