Gold Backed Cryptocurrency Zengold Solidifies Ties with Shanghai Gold Exchange for Physical Gold Storage

by Kenneth Schortgen, The Daily Economist:

When both Zengold and Onegram implemented their ICO’s (Initial Coin Offerings) last month, investors flocked in much larger numbers towards the Zengold model, allowing them to sell out their initial offering in just a few hours time. And perhaps one of the biggest reasons for this was the fact that Zengold catered to an Asian market where millions of investors were already seeking a conduit to get their wealth out of sovereign currencies such as the Yen, the Yuan, and the South Korean Wan currency.

But over in the West there was some trepidation about trusting in a new company that used a cryptocurrency to represent physical gold, and as such there was limited buying of the ICO from investors in Europe and the United States. However, this caution may have been shortsighted since it has now been revealed that the gold being stored to backstop Zengold tokens will be kept and audited in the world’s largest physical gold market.

The term gold standard in the monetary system is long gone, but the new-age cryptocurrencies with no historical connection to physical assets are increasingly working on creating a new gold standard in virtual space. ZenGold is one such cryptocurrency platform that is involved in the creation of gold backed smart assets.

Built on the recently popularized Metaverse blockchain, ZenGold allows investors to buy, sell and trade gold on the blockchain indirectly. The crypto asset on ZenGold, referred to as ZenGold tokens are backed by actual physical gold, which ensures the store of value of each token. At the same time, the highly divisible nature of crypto tokens makes it possible for the community members to use gold as an efficient payment mechanism for both small and huge transactions, which is otherwise impossible with the yellow metal.

In addition to acting like an absolute store of value, least affected by volatility as in the case of Bitcoin and other cryptocurrencies, ZenGold presents itself as an attractive investment opportunity for many. Each ZenGold token (ZNG) represents the value of one gram of gold which is physically stored in the secure facilities of the Shanghai Gold Exchange. It also offers freedom to the token holders to burn their ZNG tokens and receive an equivalent value in real gold when required. – News BTC

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