GoldMint – Gold-Backed CryptoAsset Blockchain For Digital Gold?
GoldMint is an Ethereum-based platform that will provide gold-backed investments to cryptocurrency investors. Here’s our GoldMint review.
What Is GoldMint?
GoldMint, found online at GoldMint.io, is a blockchain-based platform that offers gold-backed crypto-assets. The platform uses the Ethereum blockchain.
The ecosystem revolves around a token called – appropriately enough – GOLD. The value of GOLD is based on physical gold. GoldMint buys, sells, and repurchases GOLD at the current market price for physical gold. One gold crypto asset is worth one unit of real gold.
To buy and sell gold, GoldMint uses exchange-traded funds, or ETFs, or transacts with physical gold (of 999 quality). GoldMint claims to have gold reserves that “equal or exceed its mined amounts” of the GOLD cryptocurrency.
How Does GoldMint Work?
The GoldMint platform is based on a private blockchain, although it also appears to be linked to the Ethereum blockchain in some way. The platform itself is also based on Graphene technology. Graphene is an open-source, multi-featured platform that was chosen for its strict security standards.
Some of the key features of the platform include:
- Private Blockchain: GoldMint’s blockchain uses a proof of stake consensus.
- Vending Gold Storage: GoldMint has safe storage that gives the platform the ability to quickly and safely take out loans using gold or gold jewelry as security.
- GoldMint App: The app creates and processes blocks within the blockchain. Users receive a commission for the processed transactions.
- GoldMint API: The API allows any financial institution to use GOLD crypto-assets as a means of payment. The API also allows any third-party holder of large gold assets to tokenize their assets and create their own protocol.
Overall, GoldMint claims to have created a cryptocurrency that’s 100% backed by gold, purchased either through ETFs or in the form of physical, high-purity gold. Why wouldn’t you just buy gold ETFs yourself, or purchase physical gold?
The developer behind GoldMint claims that its customers enjoy the benefits of cryptocurrency – including easy use as a hedging solution, easy payments (it turns gold into a more transactable currency), and better investment performance (GoldMint specifically mentions that it “guarantees the investors with a 10% ROI a year in gold”).
The other advantage is that GoldMint can be used to issue loans on gold.
Ultimately, tokenizing gold turns it into a more transactable, usable asset – kind of like how fiat currencies were originally designed, until they abandoned the gold standard.
Who’s Behind GoldMint?
GoldMint was founded in 2016 by the founders of the LOT-ZOLOTO company. That company purchases unwanted gold securities from pawn shops, processes those assets, then supplies them to jewelers. In the first six months of 2017, LOT-ZOLOTO turned over an equivalent of $50.2 billion USD, according to the GoldMint whitepaper.
GoldMint is led by CEO Dmitry Plutshevsky, co-CEO Konstantin Romanov, and CTO Konstantin Pichugin.
GoldMint will take a commission of all GOLD token purchases. GOLD is subject to a 5% purchase fee and a 3% sales fee.
GoldMint also plans to release a separate currency called MNT, which will be used as a utility token for operations, smart contract implementation, and block creation/transaction confirmations. In exchange for running the blockchain, MNT owners will receive 75% of the commissions taken from processing GOLD transactions. MNT will initially be sold and distributed on the Ethereum blockchain.
GoldMint is a unique endeavor that aims to provide GOLD tokens to investors. Each GOLD token is backed by one unit of real, high-purity gold. GoldMint doesn’t purchase all of its gold in the form of physical gold – it claims to purchase some of its gold in the form of ETFs.
GoldMint’s whitepaper also describes an audit program, although they don’t go into a great level of detail. The company will partner with a “top 100 audit company” that will objectively verify the amount of gold held by GoldMint.
Overall, GoldMint isn’t the first company to provide gold-backed crypto-assets to investors. You can learn more about the project online today at GoldMint.io.