Blockchain Cows: A Cloaked Marketing Stunt for Agtech Startup

A Brazilian rancher secured a $19,600 loan by tokenizing 10 cows, sparking widespread media coverage and praise for blockchain technology's ability to extend credit to farmers.

However, upon closer inspection, it becomes apparent that the story is not as straightforward. The rancher in question has an expansive farm with over 1.3 square miles of land, a massive herd of cows, and access to traditional financing options.

The tokenized cows represent only 4% of the dairy's lactating cows, and the loan amount is significantly lower than the value of the rancher's land. The use of blockchain in this case adds no discernible value beyond the buzzwords used by media outlets.

Cowmed, the startup behind the tokenized cattle deals, has raised over $1 million in financing since 2017 and charges its customers around $5 per collar per month. The company's business is significantly more modest than its competitors, which raises questions about its ability to achieve its ambitious goals.