The first vegetable-backed cryptocurrency in Mexico has emerged in the fertile habanero fields of Quintana Roo.
Amar Hidroponía, a company that specializes in producing habanero chiles in Leona Vicario, decided to attract small investors by selling digital tokens beginning in September last year. And so was born the cryptocurrency Agrocoin.
Each Agrocoin costs 500 pesos (US $27), and its value is backed by a square meter of hydroponic habanero production.
The firm said in a statement that it expects to pay a yearly dividend equal to about 30% of the cost, depending on output and demand.
“We had a lot of people who wanted to invest, but with less money,” Amar Hidroponía president Rodrigo Domenzain told Bloomberg. “Agrocoin allows us to have a new investment product backed by agricultural goods.”
“We saw the opportunity of using the cryptocurrency-backing technology blockchain to share the profits [of their production],” said the firm’s CEO, Pablo Arteaga Vega.
Investors interested in acquiring Agrocoins can purchase them at the firm’s website and, after a year-long lockup period, exchange them on a cryptocurrency trading platform. The company has sold 50,000 of the 1 million it’s planning to issue.
Although cryptocurrencies have a reputation for volatility, the Agrocoin offers some stability because the product on which it is based has a stable market price and an existing demand, mainly in the United States, Arteaga said.
Furthermore, he said Agrocoin is oriented toward investment rather than speculation.
Amar Hidroponía has five hectares allocated to back up the Agrocoin’s value, with the option of further expansion.