GoldMint has created a new cryptocurrency, GOLD, that will be backed by physical gold as well as gold exchange-traded funds (ETFs). GoldMint will use a decentralized blockchain platform to bring transparency to its users.
The GOLD cryptocurrency will be denoted as MNT internally on the GoldMint platform and on exchanges. The blockchain platform, based on Ethereum, will allow users to see GoldMint’s GOLD reserves as well as the market price for the cryptocurrency that can be bought back by GoldMint. In total, there will be 10,000,000 MNT tokens created, which will ensure that the cryptocurrency maintains value due to the fixed supply. By contrast, fiat currency has a tendency to lose value due to inflation year after year, as the money supply grows.
GoldMint aims to differentiate itself from the majority of cryptocurrencies by backing its own with a tangible asset with intrinsic value. Gold has been used as money for thousands of years, and today is universally recognized as a precious metal. Any person from any country in the world can convert their gold into fiat currency fairly easily. Gold’s unique physical qualities, such as its durability, divisibility, and malleability, have made it the ideal form of money through much of history.
GoldMint will allow individuals and companies to transfer their assets to GoldMint’s trust management for investment returns. GoldMint will provide loans to individuals and businesses with collateral in GOLD provided. Should a borrower default on a loan, GoldMint will take possession of the borrower’s GOLD. GoldMint will also allow users to apply for a credit card at pawnshops and other businesses, and the credit limit of users will be determined by the amount of their GOLD ownership.
The consensus algorithm used by GoldMint is proof-of-stake (PoS), which will allow MNT owners to mine the cryptocurrency to receive additional MNT. Mining MNT will require a certain level of computational power, which can be rented from other miners if needed. It also requires the use of GoldMint client software.
Central to the plan for the growth of GoldMint is the distribution of Custody Bots to pawnshops, gold dealers, and other places of business. Custody Bots appear similar to coffee machines, at 1.5 meters tall, .65 meters deep, and .8 meters wide. The Custody Bot can retrieve gold, inspect it with scales and a spectrometer, and deposit it in a unique safe deposit box inside. The Custody Bot accepts gold jewelry and coins, as well as gold ingots up to 100 grams. Eventually, GoldMint aims to capture 10 percent of gold reserves in the world, valued at more than $100 billion.
The Custody Bot is linked to the blockchain, where its determination of value is instantly recorded and credited to depositors. To ensure the accuracy of the process, an operator will also visually inspect the gold. A user who wants to receive their gold must enter a code linked to their safe deposit box.
GoldMint, registered in Singapore, was created in 2016 and its executives have extensive experience in the gold market. The founders also created the company LOT-ZOLOTO, which has managed over $50 million of gold transactions. For the initial coin offering (ICO) taking place from September 20 to October 20, 2017, residents of the United States, Canada, Singapore, and China are prohibited from participating. However, the company will work on expanding its presence in these countries by working with regulators.
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