Bitcoin Forum

Full disclosure: I am a team member and advisor of a similar token which is about to launch our ICO to fuel growth, not initial development of the product.

I am interested in any ICO, Crypto, or other investment vehicle that is secured by a physical asset like precious metals, gems, land, etc. Does anyone know of these existing in the current market?

Yeah, there are several projects launched already backing value of their coins with traditional physical assets. Some of them are:

1. Xaurum: Gold backed cryptocurrency launched in 2015
2. Xaurum Gamma: Land backed cryptocurrency launched in 2017
3. SLVR Mine: Cryptocurrency backed by Silver launched in 2017, planning another round of ICO in 2018
4. Cedex: Diamond based blockchain exchange, launching its ICO in March 2018, worthy project with huge buzz already.

There maybe several more projects. I could only recapitulate these at the moment. Will add more if I remember.

Never heard of this before but it got me curious. What is the real advantage of getting into these ICOs? At first glance it looks like you would "own" something close to a virtual version of these assets, but what's the advantage in that compared to ETFs, that also let you own a "virtual version" of these precious metals? Also, are these things even legal?

Tbh if you want to invest in precious metals then it is better to invest directly in those assets (or at least in their futures) and not in the coins. I've got questions to almost every coin that claims to be backed by some real asset. Everything seems to be fine untill the market is stable.But when they have some problems then they will 100% have big problems with liquidity. I'm not sure if it worth investing in such coing because you definetely won't get x2-4 profit.

VLB and Parkgene are your ICO project what you are looking about bro. These both ICO are related to automobile and parking industry so you will be able to invest this and understand the project since you mentioned the vehicle as a good assets.
All the people are not involved in the crypto community does not know the potential of bitcoin or altcoins in the market. So first they should learn about cryptos to make profit.

You can not compare gold, silver with bitcoin, if that is what you are trying to say, they are very different things and you should know that no one can compare them.
Gold is a common currency, but it has been created to be for holding purposes, it is increasing by aproximately 3% a year.

This is very interesting. Thanks for sharing

Precious metal definitely.  But then for volatility profit, I am into cryptocurrency to take advantage of the wildly fluctuating market.  It is always best to have ownership of physical stuff than items that were created out of thin air with added scheme.  Anyways, I still believe that it is still up to the developer if that digital asset will remain an air or materialize/

There have been numerous projects like those in the past and most of them have not amounted to anything, to me there is no point in trying to combine the two, gold is great but there is no point in trying to back a cryptocurrency with gold or silver, since most of the gold and silver is in private hands and you will need a huge amount of it to try to expand the money supply of your coin.

GoldMint: Gold backed cryptocurrency. Launched in 2017 as well.

Sorry for this, but none of the ICOs that are on the market, or well, they are going to be listed in some time, is backed by gold or gems, just like you are saying.

They are backed by trust, and with air, because that is the real description of almost all the ico's thar are around us at the moment.

And seriously, i do not think that you will find one that is really going to have their entire project based on something like that.

i know of two ICO schemes where tokens were purportedly backed by real estate and diamonds, respectively. the schemes were shut down by the SEC, who froze the operator's assets (https://www.sec.gov/news/press-release/2017-185-0). these were particularly egregious cases of fraud, but my point is that you need to be very careful about due diligence with any such schemes.

i feel that any commodity-backed token is a derivative. that comes with significant legal and compliance issues. when it comes to investing in ICOs, i much prefer tokens that are unlikely to be defined as securities. and i would definitely steer clear of derivatives. i suspect that we will see a lot of action from the SEC this year. i don't think they will stay quiet for too much longer.

in general, asset-backed cryptocurrency doesn't interest me because it requires centralized entities (third party trust) to maintain pegs and store the assets in question.

I don't know of many, I think Xaurum is one, I always saw them as being held back by the fact that are backed by precious metals, let's not forget the crypto market lately has grown much more rapidly than that of precious metals.

It's interesting though if I wanted to get involved in precious metals, I'd probably try getting an actual bullion first before investing in coins backed by such.

Guess I'm just paranoid but I have a "if you can't hold it or don't have the keys, you don't own it" mentality.


How would Xaurum Gamma even work? Is the land only from one country? I believe a lot of country have restrictions on land ownership for foreigners.

This question has fascinated me too initially when project was launched. Actually, project belongs to single island namely KRK in Croatia. Team had conducted ICO to pool enough money to buy villas on this island. Next they are aiming to increase their investment value through raise in the value of Land and villas. To integrate cryptocurrency into project, team is providing rent for as low as 100 Euros if someone pays from XGM coins which is much lower than real rent. Along with it, person can even convert his XGM token to real villa property.

Read more here: https://xaurum.org/gamma/

While buying an "asset secured" coin you are simply exchanging one more profitable coin ( BTC / ETH / whatever) to less profitable one while you are still taking a risk of holding a cryptocurrency. IMO it is not a smart move. As you can see from the link in previous comments the problem with asset backed coins have mostly a legal nature. So if you just want to secure your money in gold you can just trade it in other markets. For example most of the forex brokers allow you to trade with some other assets (some of those brokers also axxept deposits in BTC or LTC).

I will suggest you the bitcoin for sure.Bitcoin is not at all equal to gold,diamond or silver.It's greater than all of this,If you have some bitcoin means,you will get this all easy by selling the bitcoin.The price of this will slightly increases,but in bitcoin you may see any high change in short period of time.

I would certainly be interested in other asset secured coins, similar to USDT, but perhaps a coin where the underlying asset is set to appreciate in value.

Gold, silver and platinum are good bets, as are other resources such as crude oil, natural gas, or even property.

Come to think of it, I think a crypto-coin secured against property could be highly successful, perhaps even paying dividends (tokens) on rental income or property development gains.

In all honesty, the project I was asked to advise which is doing just this (1 token equals 1 redeemable oz. of precious metal) solves an issue I thought of in graduate school for economics: How do you prove you own a tangible asset like you can an intangible. For example: in the EU, the sourcing of sustainable wood is required by law. How can you prove it's really not from an endangered area or over forested batch?

Blockchain, and intelligent contracts combined with low cost RFID or NFC chips could revolutionize supply chain management and solve an issue greater than just having a coin go "to the moon".

Also, having the asset tied to the weight of the metal, not the value, and allowing it to be redeemed by the token holder allows for users to have a secure method of maintaining their asset and even if the market crashes with other coins, this coin by not being fiat based will never have fluctuations in price. The cost of the coin tied to the asset is based on the value of the asset.

I do not like investing in secured assets. Because it was so stable, it did not bring me much profit. But to some extent, I would like to hold about 20% of my wealth on gold and dollars, which is my reserve if all the wealth I accumulate in the cryptocurrency market is gone. Having a backup plan is a good thing for investors.

I do not here yet any ICO like that since when I was started. Well if you are the one who get first to use gems in cryptocurrency, I will congratulate you in advance for the success of your project. You have the authenticity of the project so I am hoping that your coin will not be a shitcoin like what some of ICO's here.
I hope I can participate with your campaign or token sale.

There are ICO or alts that backed by tangible asset but they are not widely known so far, this alts could be good since the value will be more secured due to the fact that it has reserves, i don't know if something like that could affect the price of crypto.

I'd love to talk more with you about this. I'm still a noob with this account , but if we can pm it'd be great.