Sudan Gold Coin – abbreviated to SGC – is a self-described “blockchain option for gold mining” according to the company website. The project, currently in ICO, is crowdfunding for the establishment of a gold mining plant in Sudan; the company then plans to allow investors holding the SGC cryptocurrency sold in the ICO to then be entitled to an equivalent amount of gold from its mining operation.
SGC is owned and operated by the Sudan Gold Mining Company, founded in 2015 by a trio of partners – Dmitrii Konoval, Yuriy Mochonyy, and an unidentified third party. Besides this, there’s not much concrete information on the company – no physical office locations are listed. More telling, though, is that the site of the company’s gold mine in Sudan is likewise not mentioned anywhere we were able to find.
This does not bode well for SGC. Lack of transparency, especially when the company is touting the development of a “transparent blockchain,” is generally frowned upon, making it difficult to trust SGC is actually going to see through its claims of building a gold processing facility.
About Sudan Gold Coin
The core product SGC is offering at the moment is its ICO. Individuals can invest in the company in return for its SGC cryptocurrency, with the proceeds of these coin sales allegedly being devoted to finds for building the company’s mining operation.
The SGC token sale, which is currently underway at the time of this writing, begins by offering a discounted price of $0.50 USD per coin. As the token sale progresses, this discount eventually diminishes until the full price of the token – $1 USD per coin – is reached. The SGC site does not specifically state any beginning or ending dates for its ICO, making it difficult to determine exactly how much an SGC token costs without physically purchasing them.
There are two main opportunities associated with investment in SGC. First is the speculative profit opportunity, as SG Mining plans to buy back SGC tokens at a stated price of approximately $2 per coin once the mining plant has been constructed and has reached profitability.
Secondly, SGC does have an affiliate program that seems to keep track of affiliate referrals and rewards affiliates for bringing in new investors. However, there is very little information available about how the affiliate program works in detail; there’s no commission percentage rate provided by the website or how the payout process works. This makes it difficult to evaluate the affiliate earning opportunity.
The Sudan Gold Coin Verdict
There’s a lot of problems with Sudan Gold Coin. First and foremost, we feel that there hasn’t been enough evidence provided by the company to bring us to trust that it’s being honest with its stated goals.
While the company website and whitepaper are detailed, most of the technical information contained therein reads as an academic explanation of gold mining. There are no direct references to what techniques the company plans to adopt in their own mining operation; likewise there’s no direct evidence that there’s even a real mine somewhere.
This makes the entire operation problematic. Without being able to verify the company’s holdings, there’s no way to determine if the money it gathers from its ICO will go towards the building of a mining operation. This places the entirety of the ICO and its ability to be used as a speculative investment into question.
Any ICO is, of course, a high-risk investment opportunity. However, with SGC’s amorphous, vague, and possibly even purposefully misleading corporate doublespeak, this raises too many red flags to justify even a modest investment in SGC.
In other words, we do not recommend investing significant amounts of resources into SGC, as we don’t have much of any expectation that the company will make good on its promises. Don’t invest anything in this company that you aren’t prepared to lose, as the odds do not appear to be in its favor.