What is Steelcoin?
Steelcoin is a security token listed on Bitpanda, designed to provide users with exposure to the value of finished steel products. Bitpanda offers Steelcoin exclusively as an ERC-20 token on the Ethereum blockchain, ensuring transparency and flexibility in tracking steel commodity values.
Key Features
- Exposure to the steel market: Steelcoin allows users to gain exposure to the value of certain steel products without directly owning physical steel, providing a unique investment opportunity.
- Transparency: As an ERC-20 token on the Ethereum blockchain, Steelcoin utilizes the benefits of blockchain technology: security, scalability and decentralization.
- Market volatility: The value of Steelcoin is linked to the price development of specific steel products, which is subject to fluctuations due to factors like supply and demand, global economic conditions, and geopolitical events. Users should be aware that these fluctuations can impact the value of their investment.
- Tokenomics: Steelcoin doesn't follow a traditional vesting schedule, instead it is always tradeable against the issuing entity. While tokens are burned upon redemption, they can be re-issued if there is investor demand. This ensures continuous liquidity and flexibility for investors. Additionally, it follows a continuous Weight Reduction Schedule as detailed in the prospectus.
- Cooperation with Frankstahl: Steelcoin is closely cooperating with the Austrian steel wholesaler Frankstahl. This adds a layer of credibility to the project, as Frankstahl is a well-established company in the industry.
How to Buy Steelcoin
- Log in to your Bitpanda account
- Go to Discover and select Security Tokens
- Choose Steelcoin from the list of available tokens
- Enter the amount of Steelcoin you wish to purchase
- Select your payment method and confirm the transaction
Once completed, your Steelcoin will appear in your portfolio. If for any reason it is not immediately visible, please hard refresh, or log out of Bitpanda and log back in.
Trading Limitations
- No swaps: You cannot swap Steelcoin for other assets on Bitpanda;
- Country restrictions: Steelcoin is not available for users in the US, UK, and Switzerland;
- No deposits or withdrawals: Steelcoin cannot be deposited to or withdrawn from external wallets;
- Sending: Steelcoin cannot be sent to other Bitpanda users;
- No physical or cash redemption: Steelcoin cannot currently be redeemed for physical steel or cash.
Conclusion
Steelcoin is designed for users looking to diversify their portfolio with a unique asset linked to the steel industry. However, its weight reduction feature and market volatility mean that users should remain informed about the ongoing changes in the underlying steel value.