Commodities have been defined as products that can be bought or sold. Over the ages, these have been the store of wealth. Gold as a commodity has always been the go-to asset for most investors across the world. Some of the notable reasons why gold as a commodity is highly valued are:
- The asset is scarce
- This asset is also portable
- This asset is used widely in the development of industrial products
Cryptocurrencies, which made an appearance in 2009, starting with Bitcoin have gained a lot of value mainly due to some of the similarities they share with gold – the yellow metal. These notable properties include scarcity, value, and portability.
One of the critical issue that has continued to bedevil gold as a physical asset is that it is quite difficult to transfer from one place to another. It has been accepted that the logistics and security involved in handling gold are also quite laborious and tasking.
GOLD Crypto Asset
GoldMint’s crypto asset is aptly named GOLD which value is pegged to the actual price of gold. The blockchain asset is backed by real physical gold and gold ETFs(Exchange Traded Funds), which ensures the conservation of value. The platform is involved in repurchasing, buying and selling these assets.
In addition to GOLD tokens, the platform also has few unique features in store. Custody Bot is one such offering that adds value to the entire ecosystem. Custody Bot is a physical device that receives, appraises, stores and deliver physical gold. The secure device creates a bridge between physical gold and financial services, allowing banks, non-credit financial institutions, and even individuals to issue or receive a credit against the gold holdings. Also, the integration of blockchain technology into the system ensures that all the assets deposited in Custody Bot are registered on a public blockchain for security, transparency, and accountability.
All transactions on the GoldMint blockchain, including the smart contracts, are governed by MNT tokens, the platform’s native cryptocurrency. MNT is a Proof of Stake cryptocurrency which is designed to ensure the holders of the token are rewarded for being part of the ecosystem. Token holders on the platform are eligible to receive a portion of the revenues generated by GoldMint through transaction fees.
Benefits of GOLD as a Crypto Asset
The GOLD crypto assets come with loads of benefits. Some of the notable advantages of the gold-backed crypto asset includes;
– Easier conversion of gold to cryptocurrencies through GOLD tokens and vice versa
– Makes securing loans against physical gold and GOLD crypto assets easier
– The tokens also provide attractive returns to the holders, which is much higher than the appreciating value of physical gold.
– The cryptocurrency, backed by actual gold reserves and ETFs that makes converting tokens to physical gold much easier.
– Companies can use GOLD for ICOs in order to hedge their risks in declining markets by providing guaranteed return and value of their money.
GoldMint ICO has started yesterday. The project has already raised over $4.5 million with over 800 000 tokens sold. The tokens are available for purchasing at the price of $7 per unit. The crowdsale follows the previously successful pre-sale round. During the presale, the platform raised over $600k in under 36 hours, making it a huge success. The same thing is expected to repeat during the crowdsale as people continue to look for stable digital currencies amid fluctuating markets due to increased volatility of other independent cryptocurrencies.
More information about the platform and the ICO are available on the platform’s website.