China-based cryptocurrency company Macau Quantum Gold Blockchain Technology Limited announced a partnership with two Chinese resource mining groups earlier today.
The company aims to create a cryptocurrency backed by physical gold reserves. Quantum Gold was established in Macau last year to launch its Quantum Gold Token, or QTG. Now, that company has taken the next step in the development of that cryptocurrency by entering a partnership with Shanghai’s Zenda Gold Mining Co. and a smaller private company. Both Chinese companies operate active mines in Africa.
To be clear, these are physical resource mining companies – not crypto mining companies. Macau Quantum is expected to use resources from the two companies to continue building its gold reserves – which are currently valued at approximately $120 million USD.
“Every time we get a mine partner our value will go up,” explained Quantum Gold founder Steve Pang in a statement to shareholders as reported by Macau News Agency (MNA). “We are not targeting an explosive increase; we are aiming at a stable price […]. In the future we will be able to collaborate with other gold industries such as jewellery.”
The company has also announced plans to launch a partnership with an Australian-listed gold mining and exploration company. Quantum Gold has not announced the name of that company, although they claim to already be in negotiations. They also claim that the Australian company possesses more than one million ounces of premium quality and high-grade zone gold reserve. That gold is expected to serve as a solid physical asset backing for the Quantum Gold Token.
The Quantum Gold Token (QTG) itself is an ERC20 token on the Ethereum platform. The cryptocurrency is listed on the Singapore Crypto Exchange (OEX), and the company plans to list it on Yobit Exchange in the near future.
Company founder Pang claims Quantum Gold has received investments from 2,000 backers. Those backers collectively purchased approximately one third of the 120 million QTG tokens issued by the company for investors. An additional 40 million tokens are reserved for the management team, with another 40 million allocated to marketing, sales incentives, bounties, operations, and administration expenses.
Meanwhile, Quantum Gold continues to build its gold reserves. The company claims to have already amassed 2.8 tonnes of gold in its reserve fund, worth a total of approximately 750 million RMB (or $120 million USD).
Ultimately, there are a number of companies seeking to establish asset-backed cryptocurrencies – including gold-backed tokens. However, Macau’s Quantum Gold Blockchain Technology Limited may be further along than any other project. Stay tuned for more information as this gold-backed cryptocurrency continues to roll out over the coming months.