GoldCoin is an ERC-20 coin that is backed by gold that prides itself on being the “Digital Gold Standard.” As an ERC-20 coin, the token is built on Ethereum and uses the (GOLD) ticker symbol. The idea behind the coin is to offer a secure method of buying gold that provides all the benefits associated with cryptocurrency.
Gold has been one of humanity’s universal currencies throughout history. Over the years, it has maintained a reputation for preserving purchasing power even if government-backed currencies fall or fail.
This stability and preservation of purchasing power come to Gold Coin. The project team knows those characteristics are particularly relevant since the world is dealing with financial instability. At the same time, gold has been historically inaccessible to the general public, and the token has several features that help overcome this.
It Is Fractionalized
While (GOLD) is not the first gold-backed cryptocurrency, it is the first one that is fractionalized and available to buy directly with cryptocurrency or fiat.
By being fractionalized, the token makes it possible to buy the quantity that you want, without dealing with a large minimum purchase. This results in a very low threshold for entry.
As mentioned, the fractionalized nature of Gold Coin means that you can buy incredibly small quantities that would not typically be possible to purchase in real gold. Buying just one ounce of gold is usually challenging, but that single ounce of physical gold is the equivalent of 1,000 Gold Coins.
This pricing structure and the ties to physical gold mean that Gold Coin’s price depends on that of the precious metal. When you divide the price of a single ounce of gold by 1,000 to get the price of just one cryptocoin, it is easy to see how this cryptocurrency can make buying and owning gold more accessible.
To show just how accessible it is, at the time of writing, a single Gold Coin was just $1.92.
Liquidity for Purchase
To increase accessibility, the project also acts as a liquidity provider. Higher liquidity helps ensure that you get the best prices from the market, regardless of the size of your purchase. In other words, the liquidity helps keep costs down.
In addition to being a more affordable method of owning gold, Gold Coin requires less effort. You do not have to spend time and energy filling out paperwork to buy gold then find a secure location to store it. The gold is physically stored in the project’s vault, but you still own it.
Backed by Physical Gold
Speaking of the vault, the gold (which is 99.9 percent pure) that backs the cryptocurrency is securely stored in the project’s vault. This ensures that it is genuinely backed by real gold and, therefore, should be more stable than cryptocurrencies due to the metal’s stability.
For transparency, anyone can view the project’s gold holdings online, and they are fully audited.
You Can Redeem the Gold
If you ever want to redeem your Gold Coin for the physical metal that backs it, you can do so. Anyone who redeems their crypto for 99.9 percent pure gold gets one ounce for 1,000 GOLD, the real value of the coin.
To redeem the gold, start by making an account on the official Gold Coin website, then sending the project the appropriate amount of cryptocurrency to redeem. You will then see a pending purchase order in your account. At this point, you will need to validate your identity, as this allows Gold Coin to ensure it gives the physical gold to the right person at the storage facility. Your account will also display the contact information and address for the storage facility at this point. You can visit the facility to redeem the gold, along with your purchase order number and identification.
The Tech Behind GoldCoin
Now that you are familiar with the accessibility of the project, we can explore some of the technology behind it.
As mentioned, GOLD is an ERC-20 stablecoin that uses the Ethereum network. Ethereum smart contracts developed by the team power Gold Coin. Because the coin is built on the Ethereum blockchain, which is immutable, it is impossible to limit or block payments.
Further security comes from the fact that you must use two-factor authentication. This helps prevent the theft of your gold.
The nature of the blockchain also supports privacy by hiding your information. For further privacy, you do not need to show identification before buying Gold Coin. All you need is your Ethereum wallet address.
The lack of information required to purchase the cryptocurrency is a sharp contrast to that needed to buy gold, especially because there are no limits to the quantity of GOLD that you can sell or buy. Selling or buying larger quantities of physical gold would require special forms for tax reasons.
The following are some key features of the smart contract:
- The token symbol is GOLD.
- The minimum transfer amount is 0.001 GOLD.
- There are eight decimal places for the token.
- The recommended gas limit is 25,000.
For security, GDA Capital audited the GoldCoin Smart Contract.
Where to Store GoldCoin
If this information has piqued your interest, you might be ready to make a purchase. So, where do you store your new cryptocurrency?
Because it is an ERC-20 token, you can store it in any crypto wallet that supports ERC-20 coins or is Ethereum-compatible. The project suggests some of the popular wallets, such as MetaMask, MyEtherWallet, Atomic Wallet, Guarda Wallet, Exodus, Ledger, or Trezor. However, any Ethereum-compatible wallet works.
GoldCoin is a gold-backed ERC-20 stablecoin, and 1,000 GOLD is equivalent to an ounce of physical gold held in the project’s vault. As an ERC-20 coin, it can be stored in any Ethereum-supported wallet, making storage accessible. The cryptocurrency itself also is accessible, as there are no limits to buying or selling GoldCoin.