Topic: How is the future of projects with gold-based tokens? - page 2. (Read 276 times)
Enough of all this gold token, they are all scam no matter how hard you want to belief in them they will fail you in the end, even the few gold backed token that works have no real proof that it's really backed by gold
As far as I know and can possibly remember, there haven't been any gold-based token or gold backed project which is still functioning, at least that I can remember, unless there is any which I don't know. Nevertheless, good backed projects has shown almost all the time to be fake or scams, just a means to deceive people into investing, however this was rampant during the ICO era. Also, I can only comment if there were any gold backed project leveraging the services of this institution that just had a problem, but since there isn't any, the future of gold backed projects in the crypto space isn't bright as little to no attention is given to them.
I'm not ready to take any risks with gold backed tokens, I will definitely pass by, thank you very much, if tokens can really be backed by gold then it's all based on lies still, you create that token through erc20 tokens which is extremely easy and you want people to start buying because you have gold or gold company? The risk is very huge, to get me confused I will need more than just mere proofs, check this post out too, it's mainly talking about scam gold tokens
https://bitcointalksearch.org/topic/m.54707352
https://bitcointalksearch.org/topic/m.54707352
Unless they have proper certification or some license I steer clear of gold-backed coins because of two reasons first they are quite expensive and secondly if the project turns out to be a scam then we will lose a big amount.
I think yes, after reading the news that you quote before looks like it's gonna affect others Gold-Backed crypto project and maybe making it more negative but also positive, It's will make more people to aware to investing on this and do more deep research, Well just hope it's not really will be affected, Cheers.
I just have read this article on asia.nikkei:
Mystery of $2bn of loans backed by fake gold in China
The 83 tons of purportedly pure gold that Kingold creditors held in their coffers as of June would be equivalent to 22% of China’s annual gold production. © Reuters[/center]
"More than a dozen Chinese financial institutions, mainly trust companies, loaned 20 billion yuan ($2.8 billion) over the past five years to Wuhan Kingold Jewelry Inc. with pure gold as collateral and insurance policies to cover any losses.
Kingold is the largest privately owned gold processor in central China's Hubei province. Its shares are listed on the Nasdaq stock exchange in New York. The company is led by Chairman Jia Zhihong, an intimidating ex-military man who is the controlling shareholder.
Well, plenty, as at least some of 83 tons of gold bars used as collateral turned out to be nothing but gilded copper. That has left lenders holding the bag for the remaining 16 billion yuan of loans outstanding against the bogus bars. The loans were covered by 30 billion yuan of property insurance policies issued by state insurer PICC Property and Casualty Co. Ltd. (PICC P&C) and other smaller insurers."
Immediately, I thought of projects that want to issue tokens of value guaranteed with gold.
Miraculously, gold-based tokens of projects can be issued based on an enormous amount of fake gold!
I used to believe that these tokens would be able to directly compete with stable coins because the USD or EUR could depreciate, but gold is more secure.
Now things are different and I have no basis to believe in those values anymore, like the scandal related to Tether's Proof-of-Reserve.
Do you think gold-based projects will be affected by this fake gold scandal? Will these projects have a bright future?
Mystery of $2bn of loans backed by fake gold in China
The 83 tons of purportedly pure gold that Kingold creditors held in their coffers as of June would be equivalent to 22% of China’s annual gold production. © Reuters[/center]
"More than a dozen Chinese financial institutions, mainly trust companies, loaned 20 billion yuan ($2.8 billion) over the past five years to Wuhan Kingold Jewelry Inc. with pure gold as collateral and insurance policies to cover any losses.
Kingold is the largest privately owned gold processor in central China's Hubei province. Its shares are listed on the Nasdaq stock exchange in New York. The company is led by Chairman Jia Zhihong, an intimidating ex-military man who is the controlling shareholder.
Well, plenty, as at least some of 83 tons of gold bars used as collateral turned out to be nothing but gilded copper. That has left lenders holding the bag for the remaining 16 billion yuan of loans outstanding against the bogus bars. The loans were covered by 30 billion yuan of property insurance policies issued by state insurer PICC Property and Casualty Co. Ltd. (PICC P&C) and other smaller insurers."
Immediately, I thought of projects that want to issue tokens of value guaranteed with gold.
Miraculously, gold-based tokens of projects can be issued based on an enormous amount of fake gold!
I used to believe that these tokens would be able to directly compete with stable coins because the USD or EUR could depreciate, but gold is more secure.
Now things are different and I have no basis to believe in those values anymore, like the scandal related to Tether's Proof-of-Reserve.
Do you think gold-based projects will be affected by this fake gold scandal? Will these projects have a bright future?
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