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Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: MrSpasybo on July 01, 2020, 03:00:25 PM

Title: How is the future of projects with gold-based tokens?
Post by: MrSpasybo on July 01, 2020, 03:00:25 PM
I just have read this article on asia.nikkei:

Mystery of $2bn of loans backed by fake gold in China (https://asia.nikkei.com/Spotlight/Caixin/Mystery-of-2bn-of-loans-backed-by-fake-gold-in-China)

(https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fs3-ap-northeast-1.amazonaws.com%2Fpsh-ex-ftnikkei-3937bb4%2Fimages%2F8%2F4%2F9%2F0%2F27950948-3-eng-GB%2FCropped-1593391336RTX3SM5S.JPG?source=nar-cms)
The 83 tons of purportedly pure gold that Kingold creditors held in their coffers as of June would be equivalent to 22% of China’s annual gold production.   © Reuters

"More than a dozen Chinese financial institutions, mainly trust companies, loaned 20 billion yuan ($2.8 billion) over the past five years to Wuhan Kingold Jewelry Inc. with pure gold as collateral and insurance policies to cover any losses.

Kingold is the largest privately owned gold processor in central China's Hubei province. Its shares are listed on the Nasdaq stock exchange in New York. The company is led by Chairman Jia Zhihong, an intimidating ex-military man who is the controlling shareholder.

Well, plenty, as at least some of 83 tons of gold bars used as collateral turned out to be nothing but gilded copper. That has left lenders holding the bag for the remaining 16 billion yuan of loans outstanding against the bogus bars. The loans were covered by 30 billion yuan of property insurance policies issued by state insurer PICC Property and Casualty Co. Ltd. (PICC P&C) and other smaller insurers."

Immediately, I thought of projects that want to issue tokens of value guaranteed with gold.
Miraculously, gold-based tokens of projects can be issued based on an enormous amount of fake gold!
I used to believe that these tokens would be able to directly compete with stable coins because the USD or EUR could depreciate, but gold is more secure.
Now things are different and I have no basis to believe in those values ​​anymore, like the scandal related to Tether's Proof-of-Reserve.

Do you think gold-based projects will be affected by this fake gold scandal? Will these projects have a bright future?
Title: Re: How is the future of projects with gold-based tokens?
Post by: TomPluz on July 01, 2020, 03:06:37 PM
I hope this another big scam will not be affecting Bitcoin as what happened to PlusToken. Inevitably, many frauds will be flooding the market and they can somehow diminish the attractiveness of the cryptocurrency industry. Let's see if there will be successful prosecution of the people behind this fake gold project.
Title: Re: How is the future of projects with gold-based tokens?
Post by: Istiak on July 01, 2020, 03:45:54 PM
Hope it will not cause another market crash like we have seen before because of plus token scam. Crypto world becomes safe heaven for scammer and they use the limitation of local laws in their advantages. Recently we have seen a lot of gold-backed the crypto projects in the market and I am concern about their future.
Title: Re: How is the future of projects with gold-based tokens?
Post by: Leonardo on July 01, 2020, 04:40:51 PM
Generally I don't believe in gold or any precious metal-based projects, simply because it's very difficult to verify the genuineness of them. Even a famous project like Tether prints tokens without US dollars back up. Anyway, does the article give us a hint that gold-based + China = stay away?
Title: Re: How is the future of projects with gold-based tokens?
Post by: masterrex on July 01, 2020, 05:01:36 PM
How could that happen, especially in the communist party governed country like China for me that was a complete stupidity, there are plenty of ways nowadays to test if it was a pure Gold or not, how come that it was only a gilded copper thats insane for me I don't believe it. By the way, many previous projects that were backed by Gold is a fraud, especially with those who are doing ICO, But those Goldbacked projects that have no ICO were good, example DIGIX, and GoldToken

GOLD TOKEN was issued and operated by DIGITAL GOLD LTD. a company incorporated in St. Vincent and Grenadines. each token that was minted is certified backed with 1 gram of pure Physical Gold 99.99 purity. and It was also audited by ChainSecurity one of the world's best in blockchain security. The GOLD TOKEN is also promoting transparency thats why anyone can access the real-time Gold deposit data at BulleonStar Vault base in Singapore. for more information just visit https://gold.storage/en/audits  anyone can confirm the Physical Gold Deposit including its serial numbers of each PAMP Gold Cast Bars. GOLD TOKEN is an Ethereum ERC20 standard token and It's currently traded in the following exchanges:

https://gold.storage/en/market


https://cryptex.net
 

https://livecoin.net


https://www.bitforex.com


https://catex.io


https://coinsbit.io


https://coinmarketcap.com/currencies/digital-gold/

Note: for reference purpose only
https://www.bullionstar.com/
Title: Re: How is the future of projects with gold-based tokens?
Post by: hair on July 01, 2020, 06:29:53 PM
Quote from: Leonardo on July 01, 2020, 04:40:51 PM
Generally I don't believe in gold or any precious metal-based projects, simply because it's very difficult to verify the genuineness of them. Even a famous project like Tether prints tokens without US dollars back up.
I also think so, will there be a guarantee that the gold based token is sufficient to supply the investors who want it? of course we also need real gold as a long-term investment. what's the solution?
Title: Re: How is the future of projects with gold-based tokens?
Post by: bigcash2011 on July 01, 2020, 11:08:10 PM
The gold backed tokens will only survive if they are legit and serve the purpose for which they are developed, if a gold backed token comes out to be fake or suspicious that will lose market rapidly so market will automatically define the worth of each token.
Title: Re: How is the future of projects with gold-based tokens?
Post by: Octoalts on July 02, 2020, 02:17:56 PM
I think all have the same potential, if gold-based token/altcoin has a large community and strong support.  Certainly altcoin will be able to survive and compete with other top ranked Altcoin.
Title: Re: How is the future of projects with gold-based tokens?
Post by: KryptoBull on July 02, 2020, 03:21:12 PM
This happening at this point can be considered a need for us to reconsider the issue of trust in tokens supported by assets such as fiat or precious metals like gold & silver.
In China, everything is possible, but investors will suffer if the assets in the bank are not worth the amount of coins/tokens circulating in the market.
Hope projects will have the best solution for Proof-of-Reserve, perhaps they will need 2-3 independent audit agencies.
Title: Re: How is the future of projects with gold-based tokens?
Post by: Renampun on July 03, 2020, 07:00:09 PM
no one can be sure...
since 2017 many crypto back-up gold projects have emerged, but only a few have survived until now, the rest ends with a scam, my advice is to be more careful and doesn't be easily attracted by the sweet promises of developers who say their platforms are safe because they are backed up by gold.
Title: Re: How is the future of projects with gold-based tokens?
Post by: carcas on July 03, 2020, 07:36:36 PM
This will be great news because many projects say their products are backed up in gold to preserve their value. I don't fully believe in the project and am more interested in projects such as applications, health and exchange platforms
Title: Re: How is the future of projects with gold-based tokens?
Post by: MrSpasybo on July 04, 2020, 12:26:10 PM
Quote from: Renampun on July 03, 2020, 07:00:09 PM
no one can be sure...
since 2017 many crypto back-up gold projects have emerged, but only a few have survived until now, the rest ends with a scam, my advice is to be more careful and doesn't be easily attracted by the sweet promises of developers who say their platforms are safe because they are backed up by gold.
There are some who say that the USD will lose value, while gold will not. But this also needs to be checked again, because gold can be counterfeited.
Just as KryptoBull said, perhaps those projects need to use many independent Auditing companies in order to have reliable Proof-of-Reserve.
Title: Re: How is the future of projects with gold-based tokens?
Post by: Good Eve Igwe on July 04, 2020, 12:35:53 PM
Me too I don't believe, I hope this is not another scam
Title: Re: How is the future of projects with gold-based tokens?
Post by: Absolutep on July 05, 2020, 05:30:27 AM
Gold backed token should be a good choice but I guess we are now having some fake gold backed token. Scammers are now taking advantage of gold backed token, although we still have some good one like "Digital gold", and so on. We must be careful not to be a victim of scammers.
Title: Re: How is the future of projects with gold-based tokens?
Post by: Quart on July 05, 2020, 11:36:30 PM
It is now very popular about the purchase with coins paid in the other exchanges. In this case, gold is something that is very solid and the price of the gold will be always increasing. Gold also has a future for good and bad impacts. For now, the gold is not available to buy, only by recichilung the money to be modal of business
Title: Re: How is the future of projects with gold-based tokens?
Post by: Tanimariya on July 06, 2020, 08:09:54 AM
I have seen many tokens supported by gold precious metal resources. Which did not succeed. CEOs of many projects backed by precious metal resources such as gold have committed fraud. They see fraud as competition. As a result, many investors have suffered huge losses. So investors do not want to invest in any project supported by gold.
Title: Re: How is the future of projects with gold-based tokens?
Post by: MrSpasybo on July 06, 2020, 11:57:32 AM
Quote from: Tanimariya on July 06, 2020, 08:09:54 AM
I have seen many tokens supported by gold precious metal resources. Which did not succeed. CEOs of many projects backed by precious metal resources such as gold have committed fraud. They see fraud as competition. As a result, many investors have suffered huge losses. So investors do not want to invest in any project supported by gold.
The success or failure of an ICO/IEO project depends on many factors, and we can sympathize if they fail. What I am worried about is that in case they succeed but there is a lack of transparency on asset audits & gold quality checks. ICO scams are only one part, the fraud in audits can be 100-1000 times more, if look at the $2.8 billion worth of fake gold in China, we will see it clearly.
Title: Re: How is the future of projects with gold-based tokens?
Post by: Jaguar on July 06, 2020, 02:21:22 PM
The possible effect to gold based tokens by the scandal fake gold is great awareness. Awakening again the projects to take it seriously to prevent this to happen again. They will be more careful doing small or big transactions.
Title: Re: How is the future of projects with gold-based tokens?
Post by: UNIVERSE on July 06, 2020, 11:29:26 PM
I think that if tjey are backed by gold exactly they will have good future probability. Gold will never end and the price keeps increasing
Title: Re: How is the future of projects with gold-based tokens?
Post by: CryptoHi on July 07, 2020, 08:05:04 PM
I think this kind of project are promising but in the late future not too early.
Title: Re: How is the future of projects with gold-based tokens?
Post by: tinakoya on July 15, 2020, 04:52:11 AM
Only few project are actually backed by real gold. Scammers just make whitepaper look good for fundraising nowadays, seems that's how to lure investors. Why do an ICO if you are backed by huge sum of gold? It's better to do a thorough research before investing in such projects
Title: Re: How is the future of projects with gold-based tokens?
Post by: MasonRobert on August 10, 2020, 05:43:33 PM
In the future, as the number of traders increases, how will the demand for buying and projects with gold-based tokens increase (which can be used to reduce fees and use other services) will also affect the price of tokens. .
Title: Re: How is the future of projects with gold-based tokens?
Post by: Joyjoyce0 on August 10, 2020, 07:43:22 PM
We can not say it is an outright scam considering the fact that crypto market is constantly evolving. Gold is an established commodity, gold backed project can stand the test of timing provided the developers have good intentions.  But many scammers can take advantage of this to defraud.
Title: Re: How is the future of projects with gold-based tokens?
Post by: Renampun on August 10, 2020, 08:26:52 PM
To be honest I don't really believe in gold-based cryptocurrency. mostly I thought it would just end in a scam.
Title: Re: How is the future of projects with gold-based tokens?
Post by: cynthiaaddison on August 10, 2020, 09:44:56 PM
Maybe i'm missing something but how do you back project with gold? Will token price be based on value of gold owned by the company or what?
Title: Re: How is the future of projects with gold-based tokens?
Post by: hushpupppy on August 11, 2020, 12:29:12 AM
Gold has always been relevant in the crypto currency space and its influence cannot be under emphasized; hence the reason why a crypto currency backed token for gold is neccessary to ease the issue of buying gold.

With Digital Gold StableCoin; you get to buy gold in a decent crypto currency manner. And i can guarantee that the future is very bright.
Title: Re: How is the future of projects with gold-based tokens?
Post by: KKH84 on August 11, 2020, 08:00:05 AM
I think the scam was deliberately planned, a bad ending for the company.  Gold is a precious metal that has never experienced inflation, I believe if there is crypto backed up with gold, honestly and transparently I believe that it will be a good and profitable investment.
Title: Re: How is the future of projects with gold-based tokens?
Post by: ashraf786100 on August 11, 2020, 09:19:06 AM
Sonay's Pusht Panahi Walay Token will stay alive for a while now that he is alive and fulfilling the purpose for which he is preparing for it, The price of each token in the market will be deducted on its own.
Title: Re: How is the future of projects with gold-based tokens?
Post by: KryptoBull on August 11, 2020, 06:13:23 PM
Is it because of this fake gold event that the price of gold in the world soared recently ?!
In my opinion, thanks to the rising price of gold, tokens based on gold will also increase in price and there may be more projects creating tokens based on gold in the near future.
When the market has many of these projects, it is easier to evaluate their potential and future.