Blockchain technology has the potential to solve existing issues and improve efficiency, not only in finance. Many projects have launched in recent years, and their potential is garnering attention. This article will summarize the results of our research on and introduce the project HelloGold.
What is HelloGold?
HelloGold is an Ethereum-based project that enables everyone to buy and sell gold via mobile terminals without location or time restrictions. Most cryptocurrencies, including Bitcoin, are not backed by any salable commodity, so their price are generally unstable. HelloGold backs its tokens with gold - the standard and most stable commodity. In doing so, they are able to stabilize the value of their product and take advantage of the many benefits of cryptocurrency.
Additionally, they can reduce the risk of fraud, tampering, etc. by uploading information regarding gold ownership and subsequent sales (tokens representing physical gold) onto a blockchain, and it is possible to digitally manage it through Smart Contracts.
How to Maintain Reliability?
HelloGold already operates a centralized gold-trading platform, and has many affiliated companies. The gold itself is investment-grade pure 99.99%. It is safely and securely stored in a safe in Singapore, which was approved by the London Bullion Market Association (LPMA).
Tokens backed by the aforementioned gold bullion are issued on Ethereum, and it is possible to trade tokens through mobile applications. Furthermore, transparency and security of customers’ gold transactions are guaranteed, thanks to Smart Contracts and the blockchain ledger. The management team has extensive experience; members have worked at organizations such as the Boston Consulting Group, Deloitte, KPMG, Bangkok Bank, Malaysia Securities Commission, etc. Users can trade without fear, as reliability is guaranteed.
Similarities and Differences
In HelloGold there are two kinds of tokens: GBT token (Gold Backed Token) and HGT token (HelloGold Token). The GBT tokens are valued at a 1-to-1 ratio with gold. Meanwhile, one GBT token has the value of 1g of gold.
HGT tokens do not have any salable value and are currently being sold in ICO. If the project is successfully raises funds and launches, HGT token holders can then receive GBT tokens as dividends. This will bridge exchange of GBT tokens on the HelloGold platform with other cryptocurrencies.
When trading on the HelloGold platform, management fees are collected. These fees fund the token’s value as well as working as a revenue source. The profit model is simple and effective.
The Future of HelloGold
The value of gold is generally stable and is has proven useful as a means of storing value remotely. Recently, gold is showing increase in value accompanying rising demand during times of weak dollars and other financial crises.
However, each time an individual purchases cash on delivery, it is necessary to provide personal information. This is called KYC (Know Your Customer) and is required in order to reduce the risk of money laundering and illegal transactions. The complexity of this purchasing process and the difficulty of management have lowered the liquidity of gold.
In comparison, GBT tokens backed by the value of gold can be exchanged very easily from any mobile device. This will contribute to improving liquidity of gold.
The ability to receive part of the transaction fee as a dividend may be very attractive among financial products similar to gold. Holders tend to keep them as part of their medium- to long-term portfolio. They are ideal financial assets in the sense that they can be held mid- and long-term holders and develop income.