Bitcoin Forum

Looking for an Altcoin that is backed by something; akin to the Gold standard as opposed to just speculation....

Thanks in Advance

I think I know a coin backed by gold. According to the project description, one of their GOLD tokens is backed by 1 gram of 99.99% pure gold. And their gold is stored by BuillonStar, you can also easily check their gold at BuillonStar through their account number. This is their website.
https://gold.storage/en/market

There are lots of coins/tokens that claims they are backed by gold but I don't think that they are really backed by gold.  They just use this scheme to entice investors to invest on their project.  I have seen several projects that claims to be backed by real asset but they failed on proving that they really are backed by what they claim and eventually, the project die or the developer runs with the collected money.


I can say their gold is too little to back up their entire token.  It is misleading to say that 1 token is backed up by 1 gram of 99.99% pure gold since they have 979,582 token and their gold reserve is only 100 gram x 72 .

Are you looking for an altcoin backed by real assets that are not stable coins (or planning to be)? If so, I don't think there is any.
Other than gold, I have seen projects claiming to be backed by diamond or gem but I'm no longer sure if they took off.

Monetran has created an asset backed stable token called Moneda.

Info here: www.startengine.com/monetran-llc  (http://www.startengine.com/monetran-llc)

I do not see anything wrong there. If you look at it closely, you will see that:
1 Gold(Their token) = 0.00465858 BTC, and if you calculate it. It is about $48 per piece, here we are talking about gold per gram. And based on the data I gathered here https://goldprice.org/gold-price-per-gram.html, For every 1 gram of 99.99% gold is $48.4
that means they are indeed backing their coin/token to 1 gram of gold each. That is totally fine and not misleading at all.

A brief explanation of the Gold Standard and why a currency backed by gold wouldn't work today:

www.monetran.com/currency-support/ (http://www.monetran.com/currency-support/)

XAUR is backed by gold https://coinmarketcap.com/currencies/xaurum/
There is also a project by the Populous Team which is named XAUP, I think its not yet on the market right now. This is the ANN thread of this project https://bitcointalk.org/index.php?topic=5100378.0

I think there is also a gold backed project in the WAVES platform, I just can't remember the name of the project.  If by real asset includes real properties then I guess there are more of the projects, you just have to search for it.

There are dozens of projects that are claimed to be backed by real-world assets! However, there is no easy way to confirm their claim because all of them are not audited by any credible auditor. So think before you leap into such tokens so save yourself from future regrets. read the below article to know the list of some asset backed cryptos,

https://www.goldscape.net/gold-blog/gold-backed-cryptocurrency/

However, nor I will not take any responsibility if their claim turns out to be false Neither I am promoting any of them. This is purely informational purpose only!

Yes, there are gold backed tokens issued by various companies. The point is, gold is a sometimes volatile commodity. This prevents any coin or token backed by gold (or any other precious metal) from achieving two important goals of any cryptocurrency which is striving for mass adoption: price stability and the ability to serve as a store of value. 

Without price stability, a crypto can't be reliably used as a medium of exchange because its value will fluctuate, often significantly.

Without the ability to serve as a store of value, it can, and often will, lose value over time.

Backing by gold is not a guarantee of anything other than it is not backed by zero.

This is so true. None of them that claims they backed by hard assets were true. Even Tether is proven to be running as a fractional reserve. Another unbelievable asset-backed coin is Petro, cryptocurrency by Maduro's government which is turning out to be scam.

BitcoinPanther,

Thank you for your time and feedback.

Based on that feedback, it's obvious I should have been more thoughtful in formulating my question and I shall do so below in response to other members generosity.

Gold, gems and the like serve a niche purpose, but for me, are too centrally controlled, not to mention the issues of transport, fungibility.... thus susceptible to manipulation. 'Stable Coins', on the other hand, are more accurately termed 'pegged' coins, whatever the underlying commodities, financial instruments or any other basket of published valuations, translating into unavoidable exposure to volatility and the inherent cyclical risks.

Again, thanks for pausing and giving consideration to a noobs meandering.

nreal,


Thanks for the reply.

I've read dozens of the whitepapers from these type offerings, so far they have all fallen short in multiple areas. However, the one area I have found that all of them have in common in a word, yield.

Yield as we know, is the wisest and truest protector from inflation's ills and preserver of wealth and the formation of capital. Without high-quality income-producing assets at the foundation of the cryptocurrency, there will be no mechanism for true price/value discovery in the open markets that transactors can rely on.

Just search in the web, but be aware. There are a lot of projects that will try to fish you, because this theme is very popular nowadays. You can even find 3-5 bounties at the moment, that are collecting funds for projects with the same purpose. (backed by gold, diamonds, real estate)

I can see some altcoins or tokens where using the name of real assets but I don't know if it was backed by it. Example, the price of Tether(USDT) is the same as the price of USD and the price will not increase higher or lower 1$ even you will invest a million dollar on it, the value will remain 1$ because it was manipulated. So what do you think about it?

After several researches i haven't find a project backed by real gold assets that i can trust, there are few ones but i don't trust them, real estate backed projects is another case, i seem to trust AQRE platorm by chellecoin among others

rosezionjohn,

My question was ill-considered at best.

It should have read 'akin to gold with a yield', or more descriptively, a blockchain authenticated portfolio of high-margin income-producing assets, secured by community-audited net asset value and guaranteed conversion into the underlying products and services. Net asset value and income, defined and measured as; blockchain-audited cash and cash equivalents from operations, modest earnings margin/growth multiple and blockchain-audited net asset value of portfolio holdings: productive land, buildings, equipment, natural resources, finished goods inventory and the like.

Enabling true price/value discovery creating a method of exchange, a reliable store of value, a yield protecting one's wealth against inflation, and a sure basis for competent price appreciation and a dividend.

I agree wholeheartedly with your observation that this has not been engineered and brought to market yet.

target,

Income producing real estate as a part of a diversified portfolio of blockchain authenticated income-producing assets would fit the bill for me.

Thanks

Yes, these are stablecoins like USDT, PAX, USDC ... all of them are backed by USD and real assets.

avikz,

Appreciate the link.

The big issue for me in all the offerings I've seen is a simple lack of authenticatable yield; no income, no basis for discovery of true price/value. Just pure speculation; or better yet, gambling. I think this is best illustrated looking at the historical price charts, especially the last 5 years. For all coins, including Bitcoin. You will see they move almost in tandem; a glaring indication they're pretty much all 'me too' coins. Although recently Altcoins have, on occasion, led Bitcoin, especially to the downside.

Agreed, with one caveat; 'price stability' should rest on a foundation of appreciating value. To me, this translates into a price discovered through authenticated net asset value and community-audited income from operations. What else can protect you from orchestrated inflation and the devaluation of whatever assets the so-called 'stable coin' is pegged to?

Thanks for your considered response.

There are a number of solutions to authenticating and auditing the claims these offers are making.

An example that pops immediately to mind would be an audio/video surveillance system with web-accessed live streaming video; whereby any member could access visual confirmation of all income-producing assets and their associated accounts of cash and cash equivalents.

The only project that i know of with real life working product and backed by big company this year so far is still bitwings but either backed with real asset or not this doesn't guaranteed the success of new projects this days since many projects are just failing like they are jokes

In my ideal cryptocurrency, whatever the assets might be, they must produce an income sufficient to maintain those assets and acquire new ones organically or otherwise; and must be blockchain-community audited.

Its a pegged coin, enough said.

Again, without a yield, these are a no-go for me.

There are many tokens as such but they come with a great caution. Majority of such coins may have existed already as nonprofitable companies but just using crypto as an avenue to get more people into their business (either to grow better or to scam them(mostly the case)). Just be careful out there.

Not stablecoins; these are 'pegged' coins. Their stability rests on the the risks and volatility of the underlying assets. We've got plenty of that already, how is that working out for us?

There are many coins on the market that claims to be backed by real gold and other physical assets that have high value. But for a coin to be backed by reals assets such as gold does not mean that the project  or coin cannot fail in the end.

For maintaining those assets, the hire financial analyst has to carefully analyze the market conditions due to the inflation risk on the token supply. I have participated in the bounties which promised to send the real estate backed tokens but these tokens are not going to pay the costs of the electricity consumed by the mining equipment, really ironic. Looking for the reliable real asset-backed up project will take your time and I suggest to compare the shortlist of candidate projects before deciding to invest.

Xaup  (gold pokens) from the famous Populous platform was promoted here early this year and its an altcoin backed by Gold. What I am not sure is how things has really gone on for it since then.

I just checked Google just now and the only info I can find on them is their bounty program on Bitcointalk on February. I hope it is still alive

Recently several projects have emerged that claim to be supported by something tangible, such as gold, real estate, and supercars. That is a pretty good strategy for tokenizing, attracting more investors to join and get to know cryptocurrency. This is a sign that the use of cryptocurrency is getting closer to daily activities, hopefully, it can bring a positive impact.

What I meant is the whole token is not backed by gold.  only around 7200 of it.  It is not the price of token but rather the token supply as a whole if you get what I mean.  What if someone who is holding 100k of token wanted to change them to gold?  Does the team have the sufficient amount of gold to accommodate this token?

There are a number of gold tokens, as already mentioned by others. You'll find one in my signature too. I'm also aware of paxgold, which is relatively new.

Eventually I think a lot of assets, including stocks and bonds will be tokenized. I believe there is a german bond (forget the name) that has been tokenized. Even an NBA player is trying to tokenize his contract.

Not to cannibalize or abandon this thread, I have however, started an
additional thread that I believe to be a broader and perhaps deeper,
if not complimentary exploration as well.

https://bitcointalk.org/index.php?topic=5186522.0 (https://bitcointalk.org/index.php?topic=5186522.0)

I have yet to see any project backed by real assets. Most of them are fake, even USDT is fake and always under strict inspection

Regretfully so, your findings are reflective of my own research.

My intent with this discussion is to tap into the collective wisdom, experience and skillsets of the Bitcointalk community to explore, perhaps flesh out, and even create from whole cloth, an Eco-system that is incorruptible by virtue of end-to-end transparency in all transactions.   

This is a new project and they can deposit more gold into their reserves, the token number is not fixed, it only represents the amount of gold circulating in the market. Add tokens if their number of users is greater. Anyway, the project is so transparent they give you a direct audit of the gold they hold.

Once its in the market, there isn't a guarantee that its price will keep as is.  But if its just a store of value and pegged to certain fiat, what good does it give to its holder?

Cryptocurrency or any other type of token released by blockchain companies may dip to the bottom but will bounce up again.

We can't be ensured by their words, i have seen many projects who claimed they are backed by gold like Bitdepository, Jinbi and so on. But in the end, they all failed badly.

That is true, asides Us dollar and Gold, I have not really come across any cryptocurrency backed by physical assets like crude or other precious stones. However, I belive it will come soon or later as cryptocurrency adoption gains momentum worldwide

I doubt such coins exist at this point in time. How can they be supported by something if cryptocurrency is almost never legalized anywhere?

The technology to audit their words is available off the shelf. It has been with us since the smart phone. Now, with blockchain authentication, the greatest enemy to price/value discovery is fear, uncertainty and doubt (FUD). That is mitigated by community line-of-sight audit.

Forget about it being legalized or not, because that might not be obtainable due to some issues surrounding it, but inasmuch as it is sure and well proven that is has a physical backing to give it some value, then it's fine. With time, we might see the full legality on crypto.

They don't need to be backed buy assets. What the hell is a "real asset" what makes it real? Money isn't even backed by gold. You don't need it to be backed by anything. It is backed by an idea or miners and hardware.
Unless you mean a real functioning company and the asset is the actual company?

Bingo. Winner, Winner Chicken Dinner!

I had not intended to come off as flippant, although I will confess, I was two glasses deep into my weekly indulgence.

Please allow me to redress by providing a fuller answer to your thoughtful comment.

I agree with your statement in general, and of course in theory. They don't need to be backed by assets in the practical sense; however, widely accepted methods of exchange that have withstood the test of time are all backed by something, either by faith, military, GDP, natural resources, strong-arm aka cartel/mafia....or any combination thereof.

Although there are many ways of defining the term "real asset", because of my background owning, operating, buying, and selling businesses and assets from turnarounds and bankruptcies, I define assets very narrowly. They are productive processes, equipment, buildings, real estate, plants. Not only do these assets have tangible net value in and of themselves, these activities produce an income stream of present and future cash flows. This and only this can cycle, otherwise you will eventually run out of other peoples money.

Your corollary point "money isn't even backed by gold" is exactly why the U.S. dollar has lost more than 95% of its purchasing power since the tricky dick administration took us off the gold standard in '71.

And the "Bingo" reference, of course, was a recognition of what I'm looking for, an offering in the crypto space that is built atop "a real functioning company" and the assets I speak of is that company producing profits back to the community, not out of some sense of altruism, but because they have earned it.

One more confession, as I close; I've been looking at this ICO/Crypto/Blockchain/..... space for more than 3 years, meaning I had very little expectation, after having read literally hundreds of whitepapers in that time, that I would receive notification or recommendation of the existence of any such project out there or currently in the pipeline, that, "Are there any Altcoins out there backed by real assets?"

Some coins claim to be backed by something tangible like Gold and silver. Well some are scared to enter the market, they say they are waiting for a better robust market, I only hope they have not scammed investors. Ixinium is still ongoing project, I can't tell how it will end.

Of course, many of them will turn out to be tricksters. For old investors, this is very bad. Well, for a new stage of investing, this only plays into the hands. After all, when the market begins to get rid of fraudulent projects, top projects will begin to attract more and more new investments.

It seems that simple google search would give you plenty of information, i often see such projects.
Tokens backed by gold, metals, USD and even diamonds.
The legitimacy is something different. Diamond example - cedex.

Its going to be really difficult to see one though as there is huge difference between claiming that they have and what is really in play. A lot of alt created make claim of being backed by real assets but there is no way to verify such claim and because there is no regulatory body to ensure that, the moment they can have a tight evidence to back up their claim, its assumed that they are saying the truth.

I would like to see one though most like from already established businesses maybe in retail or production that it won't he difficult to get verification on their claim.

Pegged, not backed.

There are over 2600 of them out there now and double that have come and gone.
Your Google search will find only "pegged".
Backed implies convertibility.
Almost all of these can be converted into nothing. This is the issue we strive and struggle to remedy.

Thank you for your contribution toward that noble and worthy outcome.

Difficult only in the sense that it has yet to be conceived, designed, engineered and brought to market.

Since you cant actually see the backed asset I really doubt there will be one at the end of the days So be very careful with those project Blockchain is decentralized and most time there is absolutely no way to arrest scammer You can end up losing money....Just learn trading and maybe try it out a bit

Will it hope that there is something we could find and have to prove that crypto isn't just an illusion but it is real.
If there is, this could be a big help either...because of what (most) people think is that crypto is a scam and having them in doubt.

Searching is the only way to find them but somehow some sites are misleading/

I have searched for such projects a lot and you can find plenty of them, but unfortunately, they are not my favourite coins, because they do not have any real use case, besides being backed by some precious metal.

On the matter of 'seeing' and/or auditing the assets that are claimed to be backing, or better yet, the core value behind the method of exchange (MOE), I can think of a number of different system configurations whereby any participant with a web-enabled device could see with their own eyes 7/24, every aspect of operations from input to output to experience outcome. In fact, I have installed a number of these systems in the companies I have bought, sold and started over the years.

One example was a business a few years back that was bought mere weeks before planned bankruptcy filing. The biggest factor to the enterprise's sad condition was loss directly attributable to shrinkage/theft. I installed a simple, relatively inexpensive (in fact it paid for itself within about 72 hours) audio/video surveillance system throughout the production plant and its satellite operations.

Set a video conference up along with a catered lunch for the employees remaining. The gist of the conversation, was telling them what they already knew, that shrinkage and theft were stealing their jobs...explained how the system worked and how it would be used to turn the business profitable again, securing their jobs, enabling good pay raises and other benefits. After implementation, the company experienced the most profitable quarter in its 7+ years in business. 

Blockchain or digital ledger technology can be utilized for the very purpose of authentication, transparency in all transactions, whether they be payables, receivables, or any other element of operations for all to see. This is the missing mechanism whereby true price/value discovery can be made at any moment in any transaction without the FUD factor. This stops volatility in its tracks. Fungibility and utility, as well as network and scaling effects, are real, sustainable, and the sound foundation of an appreciating, highly valued and sought-after method of exchange (MOE).

A native Tor browser would do all of the above and much more and is available off the shelf, re-inventing the wheel isn't what I'm looking for or proposing here. In my 3+ years of researching these issues and more than 30 years of operations experience reveals to me that the right team with the right balance, both in breadth and depth of experience, has simply not been put together to produce even one project that successfully combines all of the elements necessary for the project to go from ICO to Apex-class competitor.

Newbie ramblings again....

Unclear on what the catalyst could be, if anything news-wise, but cryptos are collapsing across the board with altcoins leading the plunge...

Bitcoin’s network hash rate dipped a record 40% yesterday, Sept. 23, in a sudden shock for the network.

I thought that you have forgotten the meant of legal tender.
The government and regulation make it becomes a real thing even without backed by a commodity like gold. But the regulators who are issuing it and backed it with their own regulation.

Money and gold are different things and remember when the gold era was replaced by fiat standard as the main payment system.

These are all BS and you ‘youts’ know it.

There are quite a few of altcoins backed by physical real assets.  You just have to spend some time researching and reading about altcoins to identify them and check for how true they are.  Once you do that, you can personally identify what will be good and best suit your investment plans.

I have recently heard that Paxos will create a gold-backed coin, I am not fully informed about the project, but I believe that PAX is reliable.
Besides, this article is right for you, at the end there are sequence that can attract your attention: https://cryptodigestnews.com/gold-backed-cryptocurrencies-everything-you-need-to-know-c71c1c00fa38
I recommend read entire article, you will learn many things about this theme: https://cryptosis.io/asset-backed-cryptocurrency/

Be careful in finding the right project backed by an asset. Cause sometimes there are projects that are not licensed nor backed by an asset by claiming to be an Asset Backed Token(ABT). But this kind of concept is very amazing, imagine all assets in the world being tokenized. 5 to 10 years from now we may have seen that.

Tether? are you serious? USDT isn't really ideal for investors. This is a coin to convert your profits from different cryptocurrencies that you are trading like bitcoin. I don't use Tether but it's said to be backed up by dollars so I think that would count as a good answer to OP's question but being considered as an investment, I don't think it's a right choice.

It would appear thus far that the answer to my question is "not yet".

For example, the recommendations are not backed by real income-producing assets, i.e.
diamonds, gold, U.S. Dollar, as none of these produce income streams. Real assets, by definition,
must produce a yield. Without the yield, price is a pure speculation. The better bet would be owning
the underlying commodities directly, which for the vast majority of us is simply not feasible. This means
that the native token must be built on a foundation of income from operations.

No one altcoin have backed with real assets because the owner want to be rich with their coin without have money, if they have real backed assets why want to be developer of altcoin or ICO project, they want to enjoy his life with his real assets and never take risk with altcoin or ICO project selling.

For a coin to be backed by a physical asset (gold, diamonds, oil and so on), the company itself must have a reserve of these physical assets. At the moment I don't know any companies. Of course, we can say that 1 token is worth 1 gram of gold, but this will not be a reinforcement.

I don't think there is currently an altcoin that is supported by real assets because the risk is greater, but there are also some altcoins that state that they are supported by real assets, but the reality is not, all of that is done only to attract interested investors, some even in declared supported by gold but that there is no evidence yet.

of course yes, stablecoins like USDT USDC PAX .... all are backed by USD at a 1: 1 ratio.

All crypto are backed by real asset and the first worldwide example of real asset is money, usd or gold among few others, the ability to be able to swap cryptocurrencies to usd says everything you need to know

Only a few altcoins are backed by real assets. Also all is just rubbish and it may crash at any time

Yes there is some of it and it was called a stable coin Like for example the Gold Stablecoin (Gold Token) it was back by a real asset like gold 1 gold token is back by 1 gram of pure Gold 99.99 % fine stored at BullionStar vault storage owning a Digital Gold is much easier today via Gold Stable coin platform. 

The term "asset"  only means something that has value and can be used to pay debts.
https://www.lexico.com/en/definition/asset

While the term "yield" is more closely related to business. An asset cannot yielding profits if it's not used in productive activities by a person or an organization.

My problem with the token built on top of income operations is that it will no longer function as a currency, but a security, or a non-dividend paying stock.

there were many legit real asset backed tokens.

DGD,golden backed ethereum token,launched in 2016.
https://digix.global/dgd/

Stablecoins,USDT,USDC....
backed by real US Dollar.

Digital collectibles, such as CryptoKitties...

and so on

I have come across several projects here and somewhere else that claim to be backed by gold. I cannot remember all of them but there was EKON which claimed to be fully backed by gold as well as audited. The ratio was 1 EKON token for 1 gram of gold. And then there is also Digital GOLD, a stablecoin which is also fully backed by gold.

I am not part of these projects nor am I endorsing any of them. I did not even take a look at their whitepaper. So any decision will be yours to make after your research of these projects.

There are a number of gold based coins, as already mentioned. Some real estate ones too .. and things like bitbond sto which is a security (bond, to be exact). Not sure if the OP considers that a real asset or not. Stablecoins in theory are based on real assets, but they aren't exactly money making endeavors for investors.

I think eventually a lot of stocks/bonds will get tokenized, but the SEC moves in slow motion, so who knows when/if that will occur.

I believe this issue is addressed in the concept paper.
Income from operations becomes a proxy mechanism
for true price discovery, convertibility, utility, etc.

And continuous self-funding of asset/income acquisition
and related on-going Protocol/DLT/SBX eco-system development.

There is an altcoin that was backed by real physical gold, and it's no other than PG-Pay. Last time, they did an ICO with their old name known as Puregold Token. But now, they've rebranded themselves as PG-Pay. Last time, their token was traded on the COSS exchange before they decided to do the token swap.

I think they're doing a private sale now and IEO later on.

The good thing about them is that their app is already up and running, and their gold ATM as well.

You can check my video review and app demo about PG-Pay here (https://www.youtube.com/watch?v=E0snxAzGZRc). I will be visiting their office in Singapore next month, as well as their gold ATM.

Also, there is a Philippine-based token that was backed by real estate property, which was known as C Estates under NEM blockchain. You can manually search that.

Only a handful of altcoins right now that are actually backed by real assets.

There are some really great projects not only with an interesting idea, but with a working product as well, the biggest problem is that because of the poor management and the lack of investors interest even great projects cannot collect enough money.

Profit is an Opinion, Cash is a Fact.

Although there are many ways of defining the term "real asset",
because of a background in operations, buying, and selling businesses,
primarily in the turnaround and bankruptcy space, I define assets very
narrowly. They are; productive ownership, processes, equipment, culture,
buildings, real estate, plants… Producing a surplus, not just a profit.

Not only do these assets have tangible net value in and of themselves,
these activities produce income streams of present and future cash flows.
This and only this can cycle, otherwise you will eventually run out of other
people’s money.

Eco-System must be, Decentralized, Anonymous and ‘Secured’
by Blockchain Validated Eco-System GDP.

Eco-System-GDP is Defined and Measured as: Authenticated Cash and
Cash Equivalents, Modest Earnings Margin/Growth Multiple + Audited
Net Asset Value (NAV+) of Portfolio Holdings; productive land, buildings,
plant, equipment, finished goods inventory, natural resources, etc.