The Singapore-based HelloGold Foundation announced on Tuesday that it is launching GOLDX, a gold-backed ERC20 coin to serve as a new stablecoin.
The token's smart contract has been audited by ChainSecurity and ZK Labs, while the bullion itself was audited by Bureau Veritas. HelloGold also has insurance provided by XL Group. The gold is "99.99% investment-grade gold independently vaulted in Singapore". Anyone who wants to trade GOLDX can use bitcoin or ethereum., but it is being sold at a minimum order of 100 GOLDX.
Depending on gold as the guarantor of the token, rather than the U.S. dollar, is not a vote for the return of the gold standard. However. gold serves as a form of insurance asset during volatile times. During the great recession, investors transformed their funds to gold, while the stock market was tanking. Gold's stability and tangibility renders it an attractive option in an unpredictable market.
"GOLDX is an alternative to a USD hedge," HelloGold's CEO, Robin Lee, told CNBC. "GOLDX is taking gold into the cryptocurrency space by applying the best practices from running SPDR GLD to create an arguably more trustworthy technical product. It's the perfect stablecoin for sophisticated crypto investors who are looking to hedge their funds."
The announcement comes on the heels of mounting doubt about tether (USDT), the most popular so-called "stablecoin" in crypto trading right now. Last week, a new dollar-backed token, TrueUSD, made its debut on the market. At the end of 2017, algorithmic stablecoin, DAI, also saw release. Concerns that USDT does not hold the promised reserves to back its growing supply, especially that 850 million new tether were printed in January, is ringing alarm bells with many in the industry.
"The USD 500 billion cryptocurrency market has been searching for a viable stablecoin - a cryptocurrency whose price is stable - that is both liquid and shows reserves transparently," HelloGold said in a statement. "GOLDX provides both."
The idea has been around for some time to use gold's stability to bring balance to the crypto force. Last week, Australian gold refiner, Perth Mint, announced its plans to launch a gold-backed ICO in the next 12-18 months. Last June, Dubai-based OneGram launched a Sharia-compliant, gold-backed coin. Current gold-backed coins, which are in the pre-ICO phase, include XGold (XGC), GoldCrypto (AuX), and Gold Bits Coin (GBeez).
The token's smart contract has been audited by ChainSecurity and ZK Labs, while the bullion itself was audited by Bureau Veritas. HelloGold also has insurance provided by XL Group. The gold is "99.99% investment-grade gold independently vaulted in Singapore". Anyone who wants to trade GOLDX can use bitcoin or ethereum., but it is being sold at a minimum order of 100 GOLDX.
Depending on gold as the guarantor of the token, rather than the U.S. dollar, is not a vote for the return of the gold standard. However. gold serves as a form of insurance asset during volatile times. During the great recession, investors transformed their funds to gold, while the stock market was tanking. Gold's stability and tangibility renders it an attractive option in an unpredictable market.
"GOLDX is an alternative to a USD hedge," HelloGold's CEO, Robin Lee, told CNBC. "GOLDX is taking gold into the cryptocurrency space by applying the best practices from running SPDR GLD to create an arguably more trustworthy technical product. It's the perfect stablecoin for sophisticated crypto investors who are looking to hedge their funds."
The announcement comes on the heels of mounting doubt about tether (USDT), the most popular so-called "stablecoin" in crypto trading right now. Last week, a new dollar-backed token, TrueUSD, made its debut on the market. At the end of 2017, algorithmic stablecoin, DAI, also saw release. Concerns that USDT does not hold the promised reserves to back its growing supply, especially that 850 million new tether were printed in January, is ringing alarm bells with many in the industry.
"The USD 500 billion cryptocurrency market has been searching for a viable stablecoin - a cryptocurrency whose price is stable - that is both liquid and shows reserves transparently," HelloGold said in a statement. "GOLDX provides both."
The idea has been around for some time to use gold's stability to bring balance to the crypto force. Last week, Australian gold refiner, Perth Mint, announced its plans to launch a gold-backed ICO in the next 12-18 months. Last June, Dubai-based OneGram launched a Sharia-compliant, gold-backed coin. Current gold-backed coins, which are in the pre-ICO phase, include XGold (XGC), GoldCrypto (AuX), and Gold Bits Coin (GBeez).