Novem is building the safest, fastest, and first gold-backed token launched on NEO. #NovemGold
This article was originally published on Medium, here.
Trust is one of the most sensitive topics in the world of investing. Whether it’s in cryptocurrencies or in gold, investors are always seeking safe and transparent assets to invest in.
However, opaque organization and full-on Ponzi schemes in both the crypto and gold industry has driven investors away.
In the crypto world, a majority of scam projects that made investors reluctant to participate in public crowd sales happened last year.
Right at the beginning of 2018, Bitconnect (a company that claimed to be a cryptocurrency lending platform) dissolved into the sands with millions of dollars of investor’s funds. The company had barely finished a year since its founding when it announced its shut down that ended up as one of the biggest exit scams in the history of cryptocurrency.
Just a month after that, another cryptocurrency startup by the name “Loop” also pulled off an exit scam that left those who had invested in the startup’s ICO short of $4.5 million. These two are only an example of the multitude of scams that have been rampant in the crypto industry for years.
The gold industry is also not new to sordid dealings. Normally, investors looking to get in the gold market go for gold ETF offers as the most convenient option. However, one has to go through popular gold ETFs like the SPRD Gold Trust which is authorized to obtain underlying assets necessary to create gold ETF shares. The SPRD Gold Trust then uses a custodian such as the HSBC bank to store and source for the gold.
Entities like the HSBC, however, have a history of shoddy dealings not to mention involvement in money laundering cases. Besides, the entire process of investing in gold ETFs like the SPRD Gold Trust is full of multiple levels of counterparty risks that make it hard for casual investors to gain confidence with their investments.
As elusive as it might be, trust still remains to be one of the most valuable assets of both the gold and crypto industry. Perhaps through the use of Blockchain and smart contracts, both the cryptocurrency and gold industry can become part of a new transparent smart economy.
Companies like Novem Gold are already at the forefront of this change. Novem Gold is combining the best of both the crypto and gold industry to bring about trust and accountability for investors. By using a gold-pegged stablecoin (the 999.9 token) Novem Gold is making it easy for investors to buy and store gold.
After all, gold is known to perform positively during recessions throughout history. So why not use Blockchain’s transparency with gold’s proven stability to create a powerful innovation that investors can use to shield their portfolios against risks?
Novem Gold’s entire approach is based on safety and transparency. Through the use of the NEO’s Blockchain, Novem Gold is providing institutional as well as retail investors a transparent stablecoin project that can handle secure storage and transfer of physical gold.