Rancher puts cows on the blockchain for clout

On Friday, a clever startup manufactured a viral media story about a Brazilian rancher securing a $19,600 loan by tokenizing 10 cows.

However, omitted from the subsequent wall-to-wall media coverage was some very inconvenient context, such as the rancher’s seat on the board of a state-backed ranching fund, his massive herd, and plentiful access to traditional, real estate-based financing.

When the story hit social media on Friday, crypto influencers applauded blockchain technologies extending credit to a farmer in need.

Unfortunately, this feel-good story falls apart under the slightest scrutiny.

Firstly, the rancher’s expansive, multi-generational real estate exceeds 1.3 square miles, and as of the most recent estimates, had over 500 cows alongside other operations.

Even if the herd size hasn’t grown, the 10 animals in Friday’s announcement represent a mere 4% of the dairy’s more than 240 lactating cows.

Secondly, trade press profiles identify the operator of the farm, Fazenda Engenho Velho, as civil engineer João Guilherme Brenner whose family has owned the land for generations.

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