Quantum Gold, or QTG, claims to be the first cryptocurrency backed by gold and the mining industry. Find out how it works today in our review.
What is Quantum Gold?
Obviously, there are a number of companies seeking to link the value of gold and other precious metals with digital currencies. Quantum Gold is one such company.
The Quantum Gold ICO begins on November 1. You can participate in the ICO or learn more about the company today by visiting QtumGold.com.
How Does Quantum Gold Work?
The Quantum Gold token, QTG, is a cryptocurrency built on Ethereum. That currency is backed by physical gold reserves owned by the developers of the currency. The value is also attached to the future production of selected gold mines.
QTG aims to use blockchain technology to enable transparency across the industry. Their goal is to create a trusted P2P exchange that revolutionizes the ecosystem in gold-related businesses, including mining, production management, exchange, and storage.
QTG also aims to offer low transaction fees, high security, and “unlimited uprise” (the website appears to mean “upside” here, but they spell it “uprise”). There are dozens of spelling mistakes across the website and the whitepaper.
Quantum Gold Features
Quantum Gold’s developers advertise all of the following features:
- Minimum downside and maximum upside with limited operational risk
- Peer-to-peer marketplace
- Low transaction fees
- Privacy and anonymity
There’s limited information about any of these features available online. In fact, they seem to just be buzzwords that you’d find on any blockchain technology’s website. We would have liked to have seen more details about how the company plans to offer transparency, privacy, security, and strong investment potential.
Who’s Behind QTG?
Quantum Gold is led by C.Y. Pang, Director and Project Head, described as an entrepreneur “with more than two decades of experience in finance” across Singapore, Hong Kong, China, Malaysia, and South Korea.
The team behind Quantum Gold first came together in September 2016 to develop and validate their concept. By January 2017, their whitepaper and website were published online (although the latest version of the whitepaper is dated from October 2017).
By December 2017, they hope to start liquidating assets, distributing tokens, and listing their tokens on exchanges. The real work begins in 2018, when the company plans to launch a DAO prototype by October 2018, and announce two gold mines by November.
By January 2019, the company plans to purchase .999 gold for its gold reserve.
The Quantum Gold (QTG) Token Sale
The company is issuing a token sale where they’re selling 200 million QTG tokens. 60% of all tokens, or 120 million QTG tokens, will be available through the public sales. 20% of all tokens, or 40 million QTG tokens, will be used for marketing, sales incentives, bounty programs, operations, and administration. The remaining 20% of tokens (40 million) are allocated to the management team.
The company is targeting a price of 0.002 ETH per token, or about $0.60 USD.
Quantum Gold will have a buyback policy in the future, allowing you to earn money from your tokens as long as the company is profitable. The price of the tokens is expected to rise based on the value of Quantum Gold’s real gold reserves and gold production.
The QTG token sale begins on November 1.
How Will Quantum Gold Make Money?
Quantum Gold plans to make money by investing in “harvest in gold mines”, as the official whitepaper explains. The company will send “appointed mine experts” to “explore potential mine partners in different countries.”
They plan to select two mines every calendar year. Those mines will be sent to the DAO for a decision. The selection criteria include whether or not the mines will accept crypto tokens in exchange for future gold production, the expected production of the mine, and the mine’s willingness to adopt blockchain technology.
The company has identified one sample mine in Chifeng, Inner Mongolia, China. Quantum Gold’s whitepaper cites a third party report showing that the mine will produce 7154kg of gold and 36,582kg of silver in around 18 years.
In addition to investing in real mining operations, the company plans to allocate half of its proceeds (net of expenses) to purchase .999 gold as part of its year-one “Real Gold Reserve”, or RGR.
It’s not totally clear if the gold reserves will have a specific target – say, if each QTG token will represent x amount of gold. Instead, it seems like the tokens will just represent the basket of Quantum Gold’s assets overall.
Quantum Gold’s token sale for QTG tokens begins on November 1. You can invest in tokens that represent gold reserves and gold production in mines around the world.
Overall, Quantum Gold’s English language whitepaper doesn’t have many details about the company’s future business plans or strategies. It’s not clear how much gold is linked to each token, or whether or not the tokens are linked to any concrete gold reserves. The company also doesn’t mention any type of auditing system in place to verify those gold reserves exist.
Ultimately, you can decide for yourself if Quantum Gold is worth an investment by visiting QtumGold.com.