A Malaysian Company’s Islamic Certified Cryptocurrency Is Fully Gold-Backed
This one though, is worth its weight in gold.
Which is a bad analogy because cryptocurrencies are virtual and don’t weigh anything.
Anyway, say hello to new kid on the block GOLDX. A cryptocurrency that’s sharia-compliant and fully backed by 99.99% investment grade gold.
What is GOLDX?
Each alternative cryptocurrency – or altcoin – provides different functions and are targeted at different communities. This is in order to set themselves apart from their contemporaries.
Malaysian company HelloGold has introduced an altcoin that might shake things up.
Named GOLDX, it might just be the most stable yet. In a world where nobody bats an eye when a cryptocurrency plunges to 30% of its value in a week, this is especially important.
Investors can purchase GOLDX with Bitcoin or Ethereum, two of the biggest cryptocurrencies out there.
However, where it differs is in its backing by physical gold. 1 GOLDX is always tied to 1g of gold, making it an “anchor of stability” to cryptocurrency investors.
This gold is stored in a secure vault in Singapore, looked after by custodian BullionStar Singapore.
For everyone’s ease of mind, BullionStar sends something called a bar list daily that details what they hold for HelloGold, the owner of GOLDX.
According to its website, GOLDX’s meets the two following conditions that satisfy Sharia law restrictions:
- The process of buying and selling is sufficiently transparent
- It’s backed by physical gold that is fully allocated
- The process of buying and selling physical gold is completed in the time allowed by the standard.
The Sharia Compliance process was conducted by Malaysian firm Amanie Advisors, who have a team of Islamic scholars who maintain and ensure the integrity of the process.
You might be wondering why anyone would purchase gold through GOLDX, instead of investing in the auric metal through conventional means.
Well according to the FAQ on HelloGold’s website, GOLDX makes the process far easier for those who are already holding cryptocurrency.
Fiat currency = Nerd speak for legal tender.
Basically, GOLDX cuts through the hassle and provides a more convenient way of converting your cryptocurrency into one that is more stable.
HelloGold issues GOLDX tokens only when they have an equivalent amount of gold to allocate.
Risk-averse folks who want to future-proof themselves from the trials and tribulations of investing in cryptocurrencies might find a safe haven in GOLDX.
Definitely worth checking out.
The first stablecoin?
The idea of a stablecoin – a crypto that eschews the volatility normally associated with the virtual currencies – is currently a pipe dream for investors.
Could HelloGold have created a “holy grail” in GOLDX?
It’s way too early to tell, considering it was only launched at the end of 2017.
We’ll just have to wait and see.
Featured image from paymentweek.