The lending industry is the latest target of the initial coin offering ecosystem. There are now many different blockchain based solutions that are aiming to address the issues that plague the current lending paradigm, most of which are focused on generating the capital necessary to launch though initial coin offerings.
The decentralized, transparent, and trustless nature of blockchain technology makes it uniquely suited to facilitating peer to peer lending free from the delays, fees, and other issues associated with the lending industry as it stands today.
The smart contract capacity of the Ethereum blockchain in particular, combined with the relative ease of generating new ERC20 tokens, has made it the vehicle of choice for blockchain based lending platforms. With so many different platforms touting themselves as the ultimate solution for blockchain lending, it can be hard to determine whether newer players in this somewhat saturated industry are worth investing in.
Goldgate is a new lending initial coin offering that has the stated goal of creating a lending platform that is built on trust and reputation on the Ethereum blockchain. Instead of offering peer-to-peer lending, however, the Goldgate platform is focused on providing investors with the opportunity to lend crypto to the platform itself, which is then used to fund bot trading.
Is the Goldgate ICO worth investing in? In this article, we’ll take a look at the specifics of the Goldgate platform to find out.
What is Goldgate?
Goldgate is a fairly straightforward blockchain lending platform that uses investor capital to fund trading bot investments. There are now many “lending” platforms that saturate the initial coin offering ecosystem, but don’t be mistaken- Goldgate doesn't facilitate peer-to-peer lending- it simply takes investor capital and uses it in various investment strategies
In this sense, Goldgate is essentially a high yield investment program, or HYIP. High yield investment programs can be profitable, but suffer from a number of issues. Most commonly, many HYIPs use new investor funds to pay out legacy investor withdrawal requests, which inevitably results in the collapse of the entire system.
Goldgate essentially provides investors with the opportunity to deposit their capital, which will then be used by Goldgate to generate up to 48% ROI on a monthly basis. While Goldgate does present some compelling information on their website and, interestingly, does offer a white paper, it doesn’t provide any details on the specifics of the Goldgate trading bot or how the profits the platform offers are actually generated.
Goldgate does offer a smartphone app, provides wallet services, and facilitates fast deposits and transfers. It’s clear that there has been a significant amount of capital invested in the development of the Goldgate platform, but at the end of the day the Goldgate offering still consists of a highly speculative high yield investment program.
The Goldgate ICO
The Goldgate ICO will launch at the end of November 2017, and will make 26,000,000 BGG tokens available. 1 BGG token will be equal to one USD, with the crowdsale lasting 30 days.
Interestingly, the greater portion of the funds generated in the Goldgate ICO will be reserved for the platform itself. Just 30% of the tokens generated by Goldgate will be available for purchase, with 70% reserved for “marketing and development” and the Goldgate team.
The GoldGate Verdict
The Goldgate platform is essentially a complex high yield investment program accompanied by a wallet service, dressed up in an ICO. If you’re interested in gambling on a HYIP, Goldgate is worth a closer look.