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1  Alternate cryptocurrencies / Altcoin Discussion / How is the future of projects with gold-based tokens? on: July 01, 2020, 08:54:07 PM
I just have read this article on asia.nikkei:

Mystery of $2bn of loans backed by fake gold in China

The 83 tons of purportedly pure gold that Kingold creditors held in their coffers as of June would be equivalent to 22% of China’s annual gold production.   © Reuters[/center]

"More than a dozen Chinese financial institutions, mainly trust companies, loaned 20 billion yuan ($2.8 billion) over the past five years to Wuhan Kingold Jewelry Inc. with pure gold as collateral and insurance policies to cover any losses.

Kingold is the largest privately owned gold processor in central China's Hubei province. Its shares are listed on the Nasdaq stock exchange in New York. The company is led by Chairman Jia Zhihong, an intimidating ex-military man who is the controlling shareholder.

Well, plenty, as at least some of 83 tons of gold bars used as collateral turned out to be nothing but gilded copper. That has left lenders holding the bag for the remaining 16 billion yuan of loans outstanding against the bogus bars. The loans were covered by 30 billion yuan of property insurance policies issued by state insurer PICC Property and Casualty Co. Ltd. (PICC P&C) and other smaller insurers."


Immediately, I thought of projects that want to issue tokens of value guaranteed with gold.
Miraculously, gold-based tokens of projects can be issued based on an enormous amount of fake gold!
I used to believe that these tokens would be able to directly compete with stable coins because the USD or EUR could depreciate, but gold is more secure.
Now things are different and I have no basis to believe in those values ​​anymore, like the scandal related to Tether's Proof-of-Reserve.

Do you think gold-based projects will be affected by this fake gold scandal? Will these projects have a bright future?
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