How is the future of projects with gold-based tokens?

[MrSpasybo]

I just have read this article on asia.nikkei:

Mystery of $2bn of loans backed by fake gold in China

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?

[TomPluz]

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.

[Istiak]

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.

[Leonardo]

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?

[masterrex]

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/

[hair]

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?

[bigcash2011]

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.

[Octoalts]

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.

[KryptoBull]

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.

[Renampun]

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.

[carcas]

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

[MrSpasybo]

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.

[Good Eve Igwe]

Me too I don't believe, I hope this is not another scam

[Absolutep]

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.

[Quart]

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