The H2O Water Network, based in South Africa, listed the H2ON token on two exchanges on Thursday, marking a world first that aims to open up billions of dollars in funding for water projects all over the world.
On Thursday, the coin fluctuated between $1.30 and $1.40 before settling at $1.14 by Friday morning. The exchanges Bitmart and ApeSwap both list the tokens.
The idea for the project originated at Exchange Trust Settlement Services, which is run by private equity guru Julius Steyn and a team of investment bankers, blockchain experts, and water experts.
Steyn previously worked on re-engineering water treatment facilities in Saudi Arabia that saved the country $140 million in the first year’s costs.
Along with founding Old Mutual Bank and Twenty20, an online bank that was ultimately acquired by Standard Chartered, he was also a member of the team.
“Water supply is one of the biggest challenges the world will face in the future, and there are dozens of viable projects that need funding, commercial know-how, and water expertise to get them off the ground. We want to fill that void, says Steyn.
supported by reputable projects
The H2ON token’s release coincides with a period of declining trust in the more speculative facets of cryptocurrency investing.
The H2ON token stands out because it is supported by verifiable projects that are daily audited and monitored on the blockchain, allowing for the tracking of revenues and water volumes almost in real-time.
This should open up new funding avenues for water infrastructure projects, which typically rely on institutions of developmental finance with lengthy approval and payback cycles.
The H2O Network intends to make funding, even for smaller projects, much quicker and easier while drastically reducing the lead times for bringing water projects online.
Global Emerging Markets (GEM), an alternative investment company with $3.4 billion in projects in 75 nations, is supporting the project.
According to Steyn, the H2ON token focuses more on international water project financing than it does on the technical engineering and construction of such projects. “Technical involvement in a project is limited to the extent necessary to ensure that a water project complies with strict environmental, social, and governance [standards], is operational, and complies with our rating and underwriting standards.”
According to Steyn, financing water projects is capital-intensive, complicated, and risky, especially in light of the current state of global warming. As a result, there is a need for a specialized financing mechanism supported by some of the world’s top water and business experts.
More than two billion people, according to the World Health Organization, endure severe water scarcities. According to research, by 2030, more than half of the world’s population will likely be affected by water scarcity.
The global funding gap for water infrastructure is expected to exceed $18 trillion by the end of 2030, according to a study by the Organisation for Economic Co-operation and Development (OECD).
Going forward, society and business are predicted to be significantly at risk due to this.
Projects
H2O Securities, a part of Exchange Trust Settlement Services, is in charge of managing the water projects. International experts and engineers evaluate and analyze projects, and according to Steyn, a pipeline of projects totaling more than $200 million is currently being evaluated.
According to Steyn, this is the first time a cryptocurrency specifically created to finance water has been created. “In order for token holders to understand what they are purchasing, we want our token to be underwritten and rated by a globally recognized ratings agency.”
The token is created using smart contracts that keep track of water production costs, quality, and volume. It is built on the Binance Smart Chain. The plant owner is paid daily into a pre-funded digital wallet using the stablecoin USD Tether (USDT), which is backed by the US dollar.
