Of all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a way of diversifying risks, especially through the use of futures contracts and derivatives. The gold market is subject to speculation and volatility as are other markets. Compared to other precious metals used for investment, gold has the most effective safe haven and hedging properties across a number of countries. One startup that can leverage this to their benefit is GoldMint.
GoldMint runs on a blockchain ledger and works via a digitized cryptoasset called GOLD whose cryptocurrency value is based on physical gold. The decentralized platform uses a special blockchain that helps gold owners trade, loan, invest in and, generally, use their commodities for profit. GoldMint buys, sells and repurchases GOLD at the current market price for physical gold. The company uses exchange-traded funds (ETF) or physical gold (of 999 quality) as its security. GoldMint’s gold reserves equal or exceed its mined amounts of GOLD.
Singapore based GoldMint is led by Dmitry Plutschevsky, co-founder of Lot-Zoloto, a gold trading company based in Russia with a trading turnover of USD 100 million in 2017. Among the advisors to this project are Serg Umansky, founding partner at SIGNET; Alex Butmanov, managing partner at DTI; Igor Ryabenkyi, managing partner at Altair VC, and Julian Zegelman, managing partner at Velton Zegelman. While talking about the team, Julian Zegelman, GoldMint Advisor mentioned,
“I like the project team and their vision of becoming the first and largest player in the gold tokenization market as one of the benchmark financial assets.”
Much of the value of gold comes from its scarcity, that some gold bars, gold coins or gold jewellery (for instance) can be small enough to put in your pocket and most of all, from the metals’ usefulness to industries. Cryptocurrency adapted some of gold’s benefits by coming up with a bitcoin that’s scarce, by introducing a digital coin that can be easily and effortlessly transmitted, and by creating a distributed, decentralized blockchain that aids business. Cryptocurrency also adds value by making the transactions of your money fast, secure, and transparent.
GoldMint project is being launched to provide gold ownership solutions for cryptocurrency investors. Physical gold is an age-old method of payment and wealth preservation, due to its brilliance and value. Owning gold, however, requires expensive security, safekeeping, and insurance, in addition to being illiquid. GoldMint’s modern solution to these inherent problems is GOLD, a 100% gold-backed token.
Taking all of the security advantages of its yellow metal counterpart, GOLD tokens are a stable, transparent and non-volatile means to hedge your crypto portfolio from wild market swings. GoldMint will ensure the coins persistent value physical assets as well as paper assets such as ETFs. Additionally, GOLD holders will be able to use their tokens in guarantees, loans, and escrow services. GOLD will be subject to a 5% purchase and 3% sale fee.
GoldMint will also release MNT, its utility token used for operations, implementation of smart contracts, and for rewarding block creation and transaction confirmation. For facilitating the blockchain, MNT owners will receive 75% of the commissions taken from processing GOLD transactions. Initially, MNT will be sold and distributed on the Ethereum blockchain. After MNT is distributed, GoldMint will launch its own PoS blockchain based on Graphene. Thus, it will be safer, more productive and faster.
GoldMint will incorporate several technological advancements into its project: Custody Bot, the Graphene based blockchain, and its own custom API.
Custody Bot is a blockchain connected robot programmed for inspection, temporary and long-term storage, and transfer of physical gold, jewelry, coins, or gold bullion. The groundbreaking unit will be installed in small banks, non-credit financial institutions, and pawnshops, as well as used by private individuals. When an item is placed into the Custody Bot, it conducts analysis using a spectrometer and state of the art weighing system and then stores information about weight, quality, and value on the blockchain.
For merchants and developers, GoldMint will release its API for the development of third party apps and other interfaces. Use of the API will allow online stores to take GOLD as a payment method, enable loans to be secured by banks and other MFIs, and implement other services such as escrow accounts and financial guarantees. GoldMint will soon incorporate several technological advancements into its project: Custody Bot, the Graphene based blockchain, and its own custom API.
The GoldMint project will serve all gold investors looking either to hedge their portfolio with GOLD or earn a return from facilitating the network with MNT. GoldMint founders predict that, in five to seven years, gold will be stored in, traded, and invested using machines like Custody Bot, and that the GOLD cryptoasset will become the trading unit for these operations. The launch of the GoldMint project will disrupt the billion-dollar gold market and establish itself as a market leader in the coming cryptocurrency revolution.