GoldMint, a private blockchain platform, is developing a tokenized ecosystem of traditional asset gold, providing a more liquid and efficient trading platform for cryptocurrency users.
Essentially, GoldMint’s cryptoasset GOLD provides investors in the cryptocurrency market with ownership of gold through gold exchange-traded funds (ETFs) traded in regulated stock markets. Hence, the value of GOLD is also based on the rate of the London bullion market, as one GOLD token equates to one ounce of gold on stock exchanges plus a five percent commission fee. As the whitepaper of GoldMint reads:
“GOLD is a crypto asset issued by GoldMint that uses the current price of gold set on the LBMA exchange at the time of sale. ETF is bought on the stock exchange NYSE Arca and subsequent information is publicized on GoldMint’s decentralized blockchain, making it transparent and open to all members.”
Safe Haven Asset and Hedge Against Global Markets Volatility
GoldMint and its token GOLD is unique in the sense that it provides investors in the cryptocurrency community with a safe haven asset designed specifically to deal with gold and offer financial stability in periods of economic uncertainty and global markets volatility.
For investors in the cryptocurrency community and non accredited traders, it is difficult, inefficient, and expensive to purchase gold ETFs in the stock market and physical gold from bullions such as the London bullion market through stock brokers and gold brokerages. GOLD offers a simple method of purchasing and acquiring gold in two forms, and unique services with which investors in GOLD can use to monetize their holdings.
According to the whitepaper of GoldMint, investors of GOLD can use the cryptoasset to hedge against crypto trading risks and also obtain secured loans from GoldMint by using GOLD as collateral.
“You may be able to receive a cryptocurrency or fiat loan from GoldMint PTE LTD, using GOLD as collateral. All applicants will need to undergo the KYC procedure. The GoldMint team has already launched a special bank card called ‘Bogatstvo’ for prominent pawnshops like ‘Blago’ and ‘Fianit,’” read the whitepaper.
More to that, GOLD token holders can also secure fixed investment returns by offering loans to borrowers with GoldMint as the mediator. Because agreements on the investment return and the loan are carried out systematically, the risk for investors or GOLD token holders is very low. The GoldMint development team described the process:
“The investor transfers his GOLD cryptoassets to the company’s trust management for X% per year for a certain number of months. Simultaneously, GoldMint uses Custody Bot to lend to parties for Y% per year through pawn shops all over the world. Interest on trust management is paid in GOLD.”
Already, the GoldMint team has obtained $4.7 million in ETH and BTC in its ongoing ICO campaign. The crowdsale of the GOLD token (MNT) is set to end in 7 days.
Check out their project here: https://www.goldmint.io/
Check out their ICO page: https://www.goldmint.io/ico
Disclosure: This is a Sponsored Article.