Linking a digital currency to gold is an intriguing concept.Various countries want to issue national digital currencies linked to their regular valuta. OneGram, a company in Dubai, is doing things very differently. The Islamic financial services and technology company is looking to establish the world’s first gold-backed digital currency. For some investors, this will create a product combining the best of both worlds.
Combining digital currency and a gold-backed asset is an intriguing turn of events. Investors often see gold as a safe haven asset during turbulent financial periods. At the same time, the interest in digital currency and cryptocurrency has never been higher. OneGram acknowledges both trends and aims to provide the best of both worlds to traders around the globe.
Through a partnership with GoldGuard, this project is expected to come to fruition in the coming months. GoldGuard is building one of the world’s biggest gold vaults in Dubai. OneGram feels now is the same to issue tokens linked to the value of one gram of gold. It is not the first time a similar project has been tried, though. Some cryptocurrency projects have tried to peg their tokens to the value of gold in the past. So far, none of these ventures have been overly successful.
Be Wary of What OneGram Claims To Offer
OneGram wants to be compliant with Islamic finance requirements. The company is working with Sharia scholars to ensure their full compliance with existing regulation. It is expected 12,400,768 OneGramCoin tokens will be issued in the coming months. All of these tokens will be sold during a crowdsale. Specific details regarding this sale have yet to be announced, though. The team hopes to raise US$555m in the process. The bigger question becomes whether or not there will be a big demand for these tokens in the first place.
It is true the Islamic finance sector managed 1% of global GDP. Seeing such a venture come from this industry should not b underestimated by any means. OneGram aims to provide a Sharia-compliant method to keep gold in a digital format. The question is whether or not this digital currency will be accepted by vaults all over the world. If it is just linked to one or two vaults, the currency will not be a great success by any means.
Investors always need to be wary when it comes to these types of ICOs. Not every crowdsale in the cryptocurrency world is a success. The sale will take place on the GoldGuard exchange. Tokens can be exchanged across major cryptocurrency exchanges once the ICO ends. It seems rather difficult to find the GoldGuard exchange platform, though. Be very wary when dealing with this investment opportunity for the time being.