Topic: [ANN] GOLD - First 100% Liquid Stablecoin Backed by Gold - page 73. (Read 31537 times)

It just my thinking though and I think it will be good if I tell the team about it since part of not easy to use of gold was one of the reason why fiat currency was implemented then.

I don't misunderstand the bolded quote, I disagree that it's true, especially the part that says

Because you can't, even theoretically.
Here's why:
1) The physical gold in the vault is stored under a certificate in the name of Digital Gold, not yours. They own the gold. Period.
2) The physical gold is stored in 100g bars, so if you buy 50 tokens, what do you own? Half a bar? Half of which bar? Neither. You own 50 tokens.
3) If you live in/travel to Singapore, can you walk into the bullion office (a facility they offer), present your tokens, pay the $100 admin charge, and walk out with physical gold? No.
Digital Gold have stated quite clearly
This implies, by their use of "now", that this situation may change. Because of the points in 1) and 2), I don't see how it can. Or, more to the point, whether they want it to.

Redeemability for physical is not a "feature," it's a fundamental aspect of the project and any investors should be very clear on exactly what they are buying when they buy a [GOLD] token and that is a token, nothing more.
I don't claim that that necessarily makes this a scam or anything of the sort, but I can't help but take issue with the project admin on this subject, as they have made equivocal statements regarding this.


For example, the use of the word "redeemed" in reference to tokens. You "sell" tokens everywhere else.
More blatantly, in their T&C's


That's bordering on disingenuous, you are not the owner of that gold, you are the owner of a token issued by a shell company which owns gold. That's a big difference.

Nothing personal my friend, just asking for some clarity. I hope people don't think I'm FUDing because I'm not...

You literally roasted me there mate, these are all legal questions you presented and I'd wait for gold team's response on that.

That's correct, and has been my point all along.
It does beg the question however, what happens in the "Worst Possible Scenario"?
The WPS being that we wake up one morning and all the gold has been legally collected from the vault by Digital Gold Ltd. representatives on presentation of their Vault Certificate at the bullion office, and they've walked off down the street with it.
The current stock would fit in cabin luggage.
Remember, every gram of physical gold has already had 100% of its value realized by Digital Gold Ltd. by the sale of [GOLD] tokens, but they still retain legal and physical ownership and possession of it.
Cute.
What are the tokens worth in that scenario?
What is the smart contract worth then?
What do you, a token holder, do to track down the anonymous Digital Gold Ltd. team that "consists of highly skilled and experienced group of experts in finance, banking, legal, wealth management, IT and blockchain industry"?
Do you go to their registered office in the St Vincent and Grenadines? That's Suite 305 in the Griffith Corporate Centre, an address shared by many controversial companies?
Or do you phone their Hong Kong phone number, which runs on Central European Time?

I'm afraid @Posi was right when he said he guess you understand this project concept because you definitely misunderstand what the BM said when he said "Theoretically, you can do that, but practically it does not make any sense. You will have to pay for delivery and other payments when the gold will arrive in your country. It is much easier to sell GOLD token after the investment term will end and buy for that money physical gold in your country."

I will answer, you can not redeem gold token for real gold, however for every gold token, equivalent amount of gold is stored in BullionStar wallet. Gold token's purpose is to act as an stablecoin, to help crypto people from market volatility.

Well I am not so sure and would be better if anybody from the team confirms or deny this because this quoted above situation was only a hypothetical one and additionally OP stated that:


This question was about only a 50 gram of gold and the fees are just too high to do this, so in this particular situation it would have no sense, but I think it is still possible.

We need a clear answer from the team: yes or no?

We need a clear answer from the team: yes or no?

Meanwhile, this project was created a couple of weeks back.

Well, you guess wrong, my friend, I both understand and have read the "concept".
When you buy a [GOLD] token, all you own is the token, nothing else.
And those tokens are not redeemable for physical gold.
Got it?

Read this, just the bolded bits, that should be easy for you:

...When you buy a [GOLD] token, all you own is the token, nothing else...

Theoretically, you can do that, but practically it does not make any sense.

I guess Tmfp doesn't understand or don't even bother to read the concept of this project because having or holding Gold token is also an act of possessing physical of Gold which is securely saved in the vault.

Dear capcaypro,

Theoretically, you can do that, but practically it does not make any sense. You will have to pay for delivery and other payments when the gold will arrive in your country. It is much easier to sell GOLD token after the investment term will end and buy for that money physical gold in your country.

For us is extremely expensive to take 50 grams of gold out from the vault and send it. Therefore, we will not provide such a service in the near future.

Regards,
Support Team @ Digital Gold
https://gold.storage (https://gold.storage)

Then there is no problem at all. If somebody wants to have a brick of gold at home is free to do so and for such people, the GOLD token even could not exist.

But we are talking here about cryptocurrency and blockchain supporters who want to benefit from holding gold but don't want to store or secure it when additionally token provides possibilities like transfers, payments, and easy liquidation. I think that are obvious benefits of the GOLD token that physical gold just can not deliver.

Then there is no problem at all. If somebody wants to have a brick of gold at home is free to do so and for such people, the GOLD token even could not exist.

But we are talking here about cryptocurrency and blockchain supporters who want to benefit from holding gold but don't want to store or secure it when additionally token provides possibilities like transfers, payments, and easy liquidation. I think that are obvious benefits of the GOLD token that physical gold just can not deliver.

The difference, crucial to some, is that you physically possess real gold, you own GOLD, not a [GOLD] token, which is an IOU, a derivative.

Now when you compare holding real gold and how much hassle, additionally real gold and provides no other possibilities, only problems. You can't sell it right away online, you can't send it, you can't pay with it, you can't trade it on exchanges, you have to store it, secure it and I can continue like this until the end of the page.
 

I understand that, if one think about it, there is really no need of exchanges, Digital Gold's own marketplace is simple, instant and works.

I said top tier exchange as it can help with visibility, that's it.

I understand that, if one think about it, there is really no need of exchanges, Digital Gold's own marketplace is simple, instant and works...