In 2010, a Florida man swapped 10,000 Bitcoin (BTC) for two pizzas. This was big news, establishing a value for BTC at $0.0041. Only 12 years later, those same tokens are valued at around $200 million. Today, November 2, TruckCoinSwap’s new digital asset on the Polygon network, TCS token, will be swapped for a freight receivable in a live demo at the FreightWaves F3: Future of Freight conference. While the future value of the TCS token is unknown, one variable is certain: TCS starts its journey in a U.S. trucking settlement niche exceeding $500 billion a year in transactional volume.
In the U.S., more than one million trucking companies and third-party logistics firms (3PLs) rely on banks and factoring companies to get paid. Trucking companies are typically charged 3% of gross on every invoice — a 20–25% interest rate annualized over the term; these banking entities are raking up to 90% of net revenue on every load. Why? Because most carriers cannot wait the industry standard 30–180 days to be paid directly by shippers. They need cash now to cover operational costs, and they are forced to incur payday loan rates to get that cash advance.
Chief technology officer Jake Centner summarizes the problem well: “The cost of milk and eggs aren’t just going up due to inflation. Banks and factoring companies are making it more expensive for trucks and 3PLs to operate. The very best use case for blockchain technology and digital assets is to disintermediate these types of financial problems in industry. Using the TruckCoinSwap mobile and web apps — and TCS token — transportation companies can now receive free invoice settlement, and get paid sooner. TruckCoinSwap is helping to write a new chapter in blockchain and Web3.”
TruckCoinSwap launched TCS token on CrossTower’s crypto exchanges in late September 2022 at the University of Wyoming’s Blockchain Stampede conference. This wasn’t by coincidence — TruckCoinSwap’s headquarters is adjacent to the university and staffed by several former members of the university’s Advanced Blockchain Lab. The lab’s current director, Steve Lupien, an advisor to TruckCoinSwap, is elated “the problem of usurious invoice factoring was solved in Laramie, and ‘Made in Wyoming.’”
TruckCoinSwap CEO and founder Todd Ziegler is a decade-long c-suiter from the 3PL side of the trucking sector and understands the issues well. “The carriers TruckCoinSwap supports represent 90% of the available full truckload ‘spot’ capacity on any given day in America. Without them, the shelves of every retailer and grocer would be empty in a week, and the country would be in anarchy.”
“These small businesses are among the heroes of the COVID pandemic, and represent the backbone of the entire U.S. economy. Rather than treating these companies like a national security interest, lawmakers and lobbyists have allowed big banks, tort lawyers and intermediaries to exploit these heroes for decades. And the financing fees for settlement work like a silent tax on everything we buy — on top of 8–20% annual inflation. A free settlement solution in transportation is long overdue, and TruckCoinSwap is providing it.”
Asked about the volatility of digital assets, chief commercial officer and lead developer Philip Schlump shared: “Carriers and 3PLs need to get to liquidity, so they need to sell TCS token. Drivers need to fill up their rigs and get to their next load. They’re not investing in crypto, so TruckCoinSwap has built the tokenomics model around that need. If TruckCoinSwap needs to buy the TCS token on the other side of an exchange transaction, it will. In fact, TruckCoinSwap will become the single largest buyer over time.” Schlump’s perspective is invaluable, as a 30-year veteran in tech and cyber security, a former member of the University of Wyoming’s Advanced Blockchain Lab and a former truck driver.
Following the live demo on November 2nd — streamed by FreightWaves at 10:15 am Eastern Time — the TruckCoinSwap team will focus on spreading the word about its blockchain solution, gaining access to digital asset exchanges like Coinbase, Kraken and FTX, and registering carriers on its website. “As a free service to carriers, and a necessary financial innovation in two industries, TruckCoinSwap will see viral adoption,” says Ziegler.
Founded in 2021, TruckCoinSwap is a fintech and freight tech company that can recapture and return up to 90% of net revenue on every freight transaction to carriers. TCS token is available globally in 80 countries via CrossTower Exchanges, with designs to list on all established and compliant exchanges. The TruckCoinSwap mobile and web applications are exclusively available to industry users and create a unique ecosystem for direct engagement with business-to-business partnerships in the transportation and Web3 industries.
Founded in 2019, CrossTower is a digital asset exchange offering capital market capabilities with offices in the United States, Bermuda and India. CrossTower provides best-in-class services and products tailored to the needs of retail traders and institutions. Among 450 international crypto exchanges evaluated, CrossTower is among only 21 exchanges approved by Digital Asset Research — and has been ranked as high as 4th in the world by CryptoCompare.