HelloGold, according to its website, is a gold-backed financial services provider through the creation of what it refers to as “simple and accessible gold products for everyone.” HelloGold does this through creating what it refers to as “gold-backed” cryptocurrency tokens.
What Is HelloGold?
HelloGold is a product of the HelloGold Foundation, based in Kuala Lumpur, Malaysia. The CEO is Robin Lee, formerly the Chief Financial Officer of the World Gold Council. Based on his experiences in the late 1990s during the Asian financial crisis, Lee has since devoted his life to developing ways to prevent similar fiat currency devaluations.
With the development of digital currencies, this paved the way for Lee to create the HelloGold foundation in Malaysia, providing an avenue to democratize gold investment as a hedge against the vicissitudes of a volatile economic collapse and how it can negatively impact the valuation of fiat funds.
Lee and HelloGold is attempting to do this by pinning the value of HelloGold’s crypto tokens to the price of gold and then backing every token with the same physical amount of the precious metal, stored in a vault in Singapore.
HelloGold is an investment platform that allows individuals to purchase Gold-Backed Tokens (GBT), which literally entitle the owner of a token with a commensurate amount of physical gold stored in HelloGold’s Singapore vaults.
As limited to Malaysia, the service only allows users to purchase these tokens using the Malaysian Ringgit (RM). Individuals can purchase any quantity of 99.9 percent pure investment-quality gold starting at simply 1 RM, can either be sold back to HelloGold or shipped directly to your door, and is fully insured by the company against loss.
Additionally, as Malaysia has a large Muslim community, HelloGold adheres to Shariah law when it comes to handling gold investments.
HelloGold does charge transaction fees. Buying and selling gold incurs a 2% fee, and there is a 2% annual management fee (calculated and billed monthly) for maintaining and keeping your gold safe in its vaults. There are also associated redemption fees for receiving your gold in the physical world, but these fees are unspecified as it relies upon several different variables, such as insurance, shipping costs, etc.
The opportunity presented by HelloGold is to provide avenues for investing in gold through blockchain-based gold-backed tokens, safely and securely over the internet. However, since this opportunity is (for now) limited to individuals living in Malaysia, the utility of HelloGold is extremely limited unless you’re a citizen or a resident.
HelloGold has excellent technology underpinning it, a well-respected CEO, and has is coming off a very successful first-round investment cycle just a few months before this time of writing. It looks to be poised for success when it comes to its goals of simplifying and democratizing investment in gold as a hedge against the volatility of economic disaster.
Of course, this is fantastic news for everyone in Malaysia, but otherwise – for the rest of the world, really – it’s practically useless unless HelloGold goes global.