Magnum Link bills itself as a new cryptocurrency platform that plans to issue several different digital tokens that will be backed by tangible assets, such as gold, silver, platinum, and diamonds. These precious metals and minerals will be sourced, primarily, from the company’s mining operations in Sierra Leone, Africa.
What Magnum Link?
Magnum Link was founded by Konstantyn Buialo and Andrey Popov sometime before 2013, which is when the company supposedly received a license for exploratory mining activities in a parcel of land in northern Sierra Leone. It’s been hard to find additional information about either Buialo or Popov, possibly due to a language barrier – the pair are from Russia and/or former Soviet bloc countries such as the Ukraine.
Magnum Link Product
Magnum Link is preparing an ICO for a suite of tokens, all of which are to be tied to particular precious metals. There will be one for gold, one for silver, one for palladium, and one for 0.01 karat’s worth of diamond. The goal for such activity is to make token exchanges synonymous with buying and selling tangible assets, therefore making it easier to do so.
The ICO, which has yet to go public, is slated to have 500,000 tokens available for purchase. These tokens will have an initial price of $1 USD per coin, according to the Magnum Link website.
Magnum Link Opportunity
Magnum Link’s incipient ICO represents an opportunity to not just invest in a new digital token but also to accumulate an equal amount of real-world value in tangible assets such as gold or silver. That is, at least, what Magnum Link is claiming will happen once its system goes live.
Magnum Link Conclusion
Magnum Link starts off with an excellent premise – creating a digital currency that’s pegged to the price of a specific precious metal. Purchasing a set amount of this currency means that, in a vault somewhere controlled by Magnum Link, there’s a commensurate amount of real, tangible asset put aside for the owner.
That’s all well and good, but we’re unsure how Magnum Link itself will make money. If users purchase tokens from Magnum Link, and then the company uses that revenue to buy and hold whatever precious metal the customer is interested in, there doesn’t seem to be much room for profit unless the company is planning on charging its customers a large array of service fees.
That is, of course, if Magnum Link is on the up-and-up and the company is a legitimate precious metals mining outfit. We’ve seen little hard evidence of that except for a few map images on the Magnum Link website. We’re not saying the company is fabricating anything, but the world of cryptocurrency is ripe for the plucking when it comes to scam artists, forcing us to keep highly vigilant in the case of possible schemes.
In the end, Magnum Link seems to be a rather high-risk scenario. Not that all ICOs don’t have certain inherent risks; it’s just that this one seems even riskier than normal.