ICO Scams and Cryptocurrency Backed By Gold #26
In this episode, we are talking about cryptocurrencies backed by gold, OmniCoin, and ICO Scams.
Since 1971, the US dollar is no longer backed by gold. It is essentially just a piece of paper, backed by faith in the US government. There are currently no government-issued currencies that are 100% backed by gold or any other valuable material.
If you’re one of the many who wants a currency backed by precious metals, the emerging token assetization market is creating digital tokens that represent shares of gold, silver, palladium, and other metals, held in different mining reserves and private vaults. What if you could even trade your Bitcoins for gold? It’s now possible. But be careful, there are a tremendous amount of scams!
A thing to beware of is that many of ICOs are actually for gold mining companies. You get an equity share of the company while they mine for actual gold. However, there are no promises of actually finding any. These ICOs can be repeated indefinitely by the same people, suckering people who are hoping for a huge payout that never comes.
There is a list of gold-backed tokens that have become legitimate enough to make it onto www.coinmarketcap.com. There are, however, dozens of others out there, which are in ICO, pre-ICO, or are too small to have made any waves in the market.
Again, we are not endorsing the following projects and you must do your research before investing in any ICO or cryptocurrency.
At the time of writing (July 16th, 2018) price of one (1) gram of gold: $39.87
AurumCoin (AU) - http://www.aurumcoin.com
DigixGlobal (DGX) - https://digix.global
GoldMint (MNTP) - https://www.goldmint.io
HelloGold (HGT) - https://www.hellogold.org
Xaurum (XAUR) - https://www.xaurum.org
GoldBlocks (GB) - https://info.mygoldblocks.com
Dignity (DIG) - https://cryptobontix.com
Omni (Known as Mastercoin) - The first altcoin was named Mastercoin. 5 years after its birth, Omni’s market cap is little over 7 million USD. The ROI for the initial ICO investors is about 700% and the value of the token has grown from an initial price around $1.5 USD to $12 USD by the time of writing. The most famous offspring fostered by Omni are Tether and MaidSafe - not exactly the hallmarks of a failure. But the truth is that compared to the grandiosity of Bitcoin and the explosiveness of recent ICOs, holding a rank of 499 on www.coinmarketcap.com is nothing to brag about.
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