INVESTMENT OPPORTUNITY | SPONSORED SHOWCASE
Carbon Credits Are The Currency of the Net Zero Future
The Voluntary Carbon Markets Are Booming
In 2022, Voluntary Carbon Markets (VCM) are expect to be worth $2 Billion – That’s double what it was in 2021.
By 2030, experts such as Bloomberg believe it could reach upwards of $200 Billion (that 100x growth).Â
Billions in capital have been flowing into the sector… And even with all the hype, the outlook for growth remains very strong.
Its not just Bloomberg forecasting a massive growth in the VCM sector.
The Taskforce on Scaling Voluntary Carbon Markets (TSVCM) – a private sector initiative started by the U.N.’s Special Envoy for Climate Action and Finance…is also super bullish.
• According to the TSVCM, by 2030 the carbon markets will grow upwards of ~90x in order to satisfy the growing demand for carbon credits.
Read that again. The size of the market could grow ~9000% higher.
Even in the most bear case scenario (according to Trove Research) the Voluntary Carbon Market will grow by 5X by 2030.
With such upside potential, there are massive opportunities for investors as the carbon marketplace is still in its infancy.
This is good news for early investors as carbon credits are yet to become as mainstream of a commodity as, say, a gold bar or a barrel of oil.
This leads to massive Opportunities ahead of the larger carbon BULL MARKET & DeepMarkit (TSXV: MKT) (OTC: MKTDF) (FRA: DEP) is leading the charge.
DeepMarkit’s investment-changing breakthrough
The carbon credit market faces two challenges: Lack of transparency/accountability and liquidity.
First, the former: There’s no single, internationally-accepted carbon standard that covers all the carbon markets, making it hard to know what you’re getting.Â
Then there’s liquidity. The markets lacked a single unifying standard, which makes trading more difficult.
For example, when you’re buying a gold bar anywhere in the world, you want to know who minted the bullion, how many ounces you’re actually getting, and its purity.
But carbon credits are relatively new and a bit murky, which makes it harder for buyers to know what they’re getting and where it came from. This lack of transparency is a problem.
Now an innovative young company, DeepMarkit Corp., has found a solution that covers transparency and liquidity — all together — by using blockchain technology. It’s a natural, because the technology already exists.
DeepMarkit’s stroke of genius!
Blockchain technology is a revolutionary force that’s changing how the world runs, and DeepMarkit saw that it was perfect for the carbon markets.
After all, nothing is more transparent than a blockchain network. Everybody can see all the details for every node on the chain — from when it was first created, through all the transactions.
Thus, double counting would be a non-issue for carbon credits. Only one instance of any given carbon credit could exist on the network, and credit retirement would be impossible to falsify.
Integrating with a blockchain network would also be great for liquidity, making transactions easier to change hands. Buyers could easily confirm the details of what they’re buying directly from the network itself.
Blockchain Tech + Carbon Sector = A Natural fit
DeepMarkit’s new MintCarbon.io platform
The platform is designed to work with any kind of carbon credit, whether new or pre-existing. But it gets even better.
DeepMarkit already has existing customers locked in, thanks to a major investment from a large international holding company. That provides carbon project clients for their services, plus buyers for the carbon credits they’ll be outboarding to their blockchain.
Thus, DeepMarkit can potentially earn money at both ends of those transactions.
Birth of a Giant?
The Voluntary Carbon Markets are already huge ($2B), with massive growth potential due to climate change affecting everyday live.
The earth is cooking, and DeepMarkit’s blockchain infrastructure is uniquely positioned to meet all the transparency and liquidity issues.
In the meantime, the company will keep growing, backed by strong financial resources. That’s how giants are born.
DeepMarkit Corp.
(TSXV: MKT) (OTC: MKTDF) (FRA: DEP)
DeepMarkit Corp.
(TSXV: MKT) (OTC: MKTDF) (FRA: DEP)
(P) – People
A management team makes or breaks any project, so let’s start there.
DeepMarkit’s team is headed by CEO Ranjeet Sundher, who has spent nearly three decades in the capital markets.
Through his numerous leadership positions – CEO, President, Founder, Director, Ranjeet has been involved in raising over $100 million in the natural resources sector and battery technology.
He has been successful in all of these.
Ranjeet’s extensive experience with takeovers and M&A has allowed DeepMarkit (MKT.V and MKTDF:OTC)  to smoothly integrate their recent First Carbon acquisition into their business strategy.
And speaking of the First Carbon subsidiary, their team has been brought entirely into the fold alongside their MintCarbon.io platform. So, all of their expertise is still in place.
From CEO Mo Yang’s long career in building and growing tech companies involved in cryptocurrencies with a deep experience in blockchain and tech implementation…
To Derek McKenzie, a creative and forward thinker who founded Charlotte Street Associates a few years ago, working directly with institutional investors on a wide range of investment products…
To their blockchain tech and development team.
The crew that built MintCarbon.io from the ground up is all still there, ready to keep building on their technology.
Put all these elements together, and you have a team that’s ready to deliver results.
What about their assets…?
(R) –Â Resources
For a company like DeepMarkit (MKT.V and MKTDF:OTC), the most important resource needed to keep their operations running is cash.
The team at DeepMarkit are aware of this. It’s why they raised money during the First Carbon acquisition just a few months ago.
Right after, a strategic investment from Radiance Assets Berhad, a Southeast Asian investment holding firm with approximately a billion dollars under management.
This adds another $2.1 million to their working capital, and also brings their stake in DeepMarkit to ~10%.
With ~$2 million in the bank, low monthly burn rates as a tech company, and no outstanding debt…
DeepMarkit will have no trouble carrying out their business strategy for the time to come.
So now, let’s get to the meat of it.
(O) –Â Operations
A number of carbon tech companies have sprung up in the past few years.
DeepMarkit (MKT.V and MKTDF:OTC) distinguishes itself from its competitors by focusing primarily on the tech side of things with its proprietary MintCarbon.io platform.
Many of the other companies in the space so far have favored an approach that includes buying carbon credits or carbon credit streaming agreements…
And then registering the credits they obtain to a blockchain network or similar platform.
DeepMarkit does things differently.
The idea of registering new carbon credits to a blockchain is a solid one, and very much in growing demand as witnessed by a recent US$70 million financing for Flowcarbon, to develop a crypto-carbon ecosystem.
… Yet DeepMarkit is deep into its development phase, has completed a successful test of its platform with three verified projects, and is nearing commercial launch.
But there’s already millions upon millions of tons of carbon credits and countless projects in the system.
All of these would all benefit greatly from being registered to a blockchain network.
- It’s these projects that DeepMarkit is choosing to focus on.
MintCarbon.io is a turnkey platform that allows for any carbon credit producer to tokenize their carbon credits via a smart contract… essentially turning their carbon credits into NFTs.
Now…
There are plenty of memes and misunderstandings about NFTs these days, no doubt.
Especially so when it comes to art and video games.
This is not the same thing.
These carbon credit NFTs are backed by an actual unique asset – 1 verified ton of carbon offsets.
All the benefits of the blockchain would be present:
- Where the credit originated from,
- The history of its transactions, and
- The prevention of double counting through reliable tracking.
On top of that, these smart contracts would also be easily tradable on secondary markets like one of the many decentralized cryptocurrency exchanges such as OpenSea and Rarible. This would provide better liquidity options than what’s currently available in the carbon marketplace.
If it seems like a no-brainer… it just might be.
Now, if you’re wondering how DeepMarkit gets to benefit from this, it’s simple:
Not only does DeepMarkit get to collect up to a 10% minting fee the first time a carbon credit is onboarded to their MintCarbon.io platform…
Every single time that credit is traded, and changes hands, DeepMarkit can collect another royalty.
DeepMarkit will be able to build a revenue stream from carbon credit projects and companies looking to enjoy all the benefits of being on the blockchain.
This provides environmentally friendly projects an opportunity to monetize their assets for further development, through a shared royalty model
With their flexible MintCarbon.io platform, they’ll be a top choice for any company looking to do so.
What sets DeepMarkit apart from others in the crypto-carbon space is that the MintCarbon platform allows the project owner to showcase their assets to the world utilizing graphics, artwork, video and descriptions of the project.
Along with the customization, it also allows project investors can also easily interact with the project owners through the platform.
And each carbon credit NFT can be embedded with unique characteristics and tracking details.
As an added bonus, MintCarbon.io is also run on the low emission Polygon network, meaning it’s more eco-friendly than many competitors.
On top of that…
DeepMarkit’s strategic partnership with international holding company Radiance Assets Berhad also gives them a leg up on their competition.
As part of their agreement, Radiance will be referring carbon projects under its umbrella to DeepMarkit for onboarding to the MintCarbon.io platform.
In exchange, companies in the Radiance portfolio with net zero targets will purchase the carbon credits needed to do so from DeepMarkit.
Radiance will be providing them both with clients for their MintCarbon.io carbon tokenization service…
As well as buyers for said tokens. And DeepMarkit will be collecting fees along every step of the way.
That means DeepMarkit benefits on both ends.
There’s more…
Radiance just recently committed to a two-year, $20 million dollar purchase agreement for carbon tokens minted on DeepMarkit’s MintCarbon.io platform. This is a big deal for DeepMarkit.
It guarantees them an initial revenue stream as well as demand for their tokens.
It also highlights just how much value DeepMarkit’s strategic partnership with Radiance brings to the table.
And if that sounds like too good of a deal for DeepMarkit…
Radiance currently owns 18% of DeepMarkit on a fully diluted basis, so any win for DeepMarkit is still a win for Radiance.
That’s what having skin in the game does.
(F) –Â Future
The Carbon sector and blockchain technology have been aligning rapidly in the last few years.
While the benefits of the blockchain are applicable to many sectors…
The carbon industry is essentially still being built from the ground up at this very moment.
Integrating with the most modern and up-to-date technology just makes sense.
The carbon sector will be around
for decades to come.
The fight against climate change will be an ongoing effort extending past even the end of the 21st century.
The more future-proof carbon credits standards become now… the better they’ll hold up in the decades to come.
The advantages provided by registering carbon credits to a blockchain are clear to both carbon credits producers as well as consumers.
When combined with the explosive growth potential of the carbon sector itself…
It creates ideal conditions for DeepMarkit to capitalize on with their MintCarbon.io platform.
And thanks to their partnership with Radiance Assets Berhad, DeepMarkit will have plenty of customers locked in to start growing their business with…
Maybe even a potential buyer down the road, if things go well enough.
That’s why we think they’re by far the best option around.
(I) –Â Investors
DeepMarkit’s recent acquisition of 100% of First Carbon was done by issuing shares rather than paying cash.
That means the money raised from DeepMarkit’s recent financing, as well as strategic investment from Radiance Assets Berhad, can be fully dedicated towards the company’s business operations.
Radiance owns 9.42% of the company’s shares. On a fully diluted basis, that number shoots up to 18%.
On top of this strategic investment, management and insiders own a further 25% of the shares outstanding, including the team brought over from First Carbon.
That’s the kind of commitment you want to see from a company’s management team.
After all, nothing aligns management with the interests of shareholders more than when they’re also shareholders themselves.
(T) –Â Triggers
When it comes to the voluntary carbon markets, every analyst can agree on one thing, no matter if they think it’s by a factor of 5, 15… or more.
- The VCM will need to grow several times over by 2030 in order to keep up with accelerating demand.
Thing is…
This large influx of new carbon credits will only exacerbate the issues already faced by carbon offsets today.
The lack of transparency and liquidity stemming from multiple competing standards…
Poor record keeping…
And the absence of a global marketplace.
This is something regulators are hoping to correct with the Paris Agreement’s Article 6 provisions.
It will take time to hash out an exact set of criteria that everyone can agree on, however.
And there’s still a significant amount of work that needs to be done before Article 6 can be fully implemented on a global scale.
In the meantime…
DeepMarkit’s MintCarbon.io platform solves all of these issues, AND MORE, thanks to the secure nature of smart contracts on a blockchain.
Using DeepMarkit’s technology addresses the transparency and liquidity issues faced by carbon credits today…
And should be a no-brainer for any carbon offsetting project looking to jump on the opportunity the carbon markets offer.
That’s why Radiance Assets Berhad has already locked in DeepMarkit for its own portfolio of companies – guaranteeing DeepMarkit a steady stream of both customers for its services as well as buyers for the carbon credits it’s tokenizing for the next two years.
And Radiance owns a significant chunk of the company themselves. They’re committed to making the partnership work.
For all these reasons, DeepMarkit is poised to benefit from the oncoming storm in the voluntary carbon markets.
Capital is flooding into the carbon sector. This undiscovered gem could become a major player in the carbon economy going forward.
Regards,
The Carbon Publisher