Hi Stuxnet, thank you for your deep dive. AgriDex’s Chief Strategy Officer here. Following up to Henry’s (Tradetotherworld) reply, I wanted to respond to your thoughts on the project in Part 2. You have rightly identified some core challenges in the sector as a whole, but please let me respond to your points in turn and demonstrate how AgriDex is designed to address them.
“The willingness to adopt such disruptive technology may be limited, given the industry’s thin margins and established methods.”
The core offering of the product reduces cost in transacting and therefore increases margins making it an attractive prospect by delivering 3-6% savings on transactions in USD before you include the eliminated FX spread. Furthermore one time KYC reduces the time and administration burden of transacting across borders, further reducing margins.
You are right to say that the agricultural sector is slow to adopt. This is usually because the farmer has to take on up front capital cost and risk that does not deliver for months to a year. Signing up to AgriDex does not have any up front capital cost and reduces transaction costs immediately. We recognise that new ways of working are a challenge to adoption which is why we have focussed on delivering a native experience as close to what they are used to as possible.
“While the market is indeed worth trillions, the assumption that a substantial portion will migrate toa blockchain platform seems overly optimistic, especially considering the technological barriers and resistance to change in many agricultural communities.”
As our whitepaper demonstrates, we do not need a substantial portion to become a success. 0.1% market penetration takes us past profitability and allows us to buy back and burn the tokens. Our launch partners account for more than 0.1% of Agricultural trade.
“The project faces hurdles beyond adoption. Regulatory scrutiny across multiple countries, economic feasibility for farmers operating on slim margins, and blockchain’s own limitations in handling complex global supply chains are significant concerns.”
We are built to enable regulation and have a platform that is resistant to fraud, sanctions violations and money laundering. All transactors in agricultural trade are used to a high KYC burden and often have to repeat it with each transaction. As AgriDex is a secure system where all transactors are KYCd this only needs to be completed once and KYT is done by third parties, reassuring our. With our banking and on/off ramping partnerships we are able to transact in 90% of global jurisdictions.
We believe blockchain and especially Solana with its low latency, high speed and minuscule cost is perfect for the supply chain transparency we propose.
“The balance between transparency and data privacy on a public ledger is another tricky issue that could deter potential users.”
AgriDex protects trade, financial, and personal data while providing mechanisms of disclosing to and assuring stakeholders on product quality, provenance and environmental and social impact.
“The lack of specifics on how AgriDex will deliver tangible benefits that outweigh the costs and risks is concerning. While the project might find success in niche markets, stakeholders should approach these ambitious claims with healthy skepticism.”
We are happy to talk through the specifics of the product and how it will deliver systemic change with you or anyone else in the ecosystem. AMA.
