What we are doing and why — a short overview

Whenever a new market emerges, the global economic community usually looks at it with some skepticism. Generally, it is small entrepreneurs and speculants who initially enter the market to test the viability of the new niche. If they find real demand, they will earn an extra profit compared to other industries.

During this initial period, large players only watch and follow the events from the sidelines. Why? Well, new markets usually lack proper infrastructure; and in the absence of an infrastructure, large players won’t assume the risk (and in any case, the shareholders wouldn’t let them).

The cryptocurrency market is a great example of this trend. Its potential is hundreds of times higher when compared to its current market cap. However, the arrival of large investors who could greatly increase the capitalization is impeded by the undeveloped infrastructure. Fortunately, there are numerous promising projects that aim to solve the current challenges present in the cryptocurrency industry.

How DIGITAL GOLD solves one of crypto’s key problems

The GOLD token, which was launched a few days ago, is the first stablecoin fully backed by gold. 1 GOLD is equivalent to 1 gram of physical gold.

The company used its own funding to purchase 7,200 grams of 99.9% purity gold, which were then placed in BullionStar’s secure vault - a well-known Singapore-based provider of asset storage solutions. A round-the-clock audit process conducted by BullionStar, as well as independent audit reports, confirms that the gold is physically present in the vault.

Subsequently, 7,200 tokens were issued to correspond with the amount of gold owned by DIGITAL GOLD, thus 1 token per each gram of the precious metal. The tokens are freely available for purchase to all individuals and businesses, including private investors, speculants, and hedge funds.

Once a part of these tokens has been sold, DIGITAL GOLD will proceed to purchase a new batch of physical gold on the free market. The gold will then be deposited in the vault, and a new external audit will be conducted. An announcement in this regard will be made as soon as the process is finalized.

A corresponding number of new tokens will be issued, preserving the exact ratio of 1 token = 1 gram of gold. These new tokens will also be sold to the public.

Thus, the number of GOLD tokens in circulation at any one time will never exceed the supply of gold deposited in the BullionStar vault.

What purpose do GOLD tokens serve?

GOLD tokens serve the same purpose as dozens of other stablecoins: they provide an entry point into the crypto market, allowing investors to take profit, store value, hedge risks, and avoid excessive price volatility.
How GOLD tokens differ.

The price of GOLD tokens is pegged to that of gold. This means that the basic strategy of buying and holding will always be more profitable with GOLD than with fiat-pegged stablecoins. Indeed, over the course of history, gold has been consistently growing in price relative to fiat currencies due to inflation.

GOLD stablecoins are 100% backed by physical gold. As such, it is superior even to most ETFs, which are nothing but derivatives that are not backed by the precious metal.

GOLD stablecoins are fully liquid: they can be instantly exchanged for BTC or ETH on the official DIGITAL GOLD marketplace at https://gold.storage/market

The company also acts as a marketmaker on all the exchanges that have agreed to list GOLD. The project’s own liquidity is distributed across both sides of the order books, ensuring that GOLD can be sold or bought for ETH or BTC, quickly and with minimal slippage even for large orders.

For all these reasons, GOLD stablecoins represent a true breakthrough for the cryptocurrency infrastructure. Market players will now have an opportunity to use a cryptocurrency that is 100% backed by physical gold. Lastly, the token is fully liquid, its volatility is low, and it offers a higher profit potential than other fiat-based stablecoins due to the gold’s constant price growth, and continuing inflation.

Website: https://gold.storage/
Whitepaper: https://gold.storage/wp.pdf

Follow us on social media:

Twitter: https://twitter.com/gold_erc20
Telegram: https://t.me/digitalgoldcoin
Reddit: https://www.reddit.com/r/golderc20/
Bitcointalk: https://bitcointalk.org/index.php?topic=5161544