How are they going to be different with XAUR?
Its interesting to see that holders will receive dividends which the team is likely going to resolve with legalization. Seem too good to be true already specially upon seeing the team speculate about he price to be $16 already by next year.
Target asks:
1.How are they going to be different with XAUR?
asdlolciterquit asks:
2.I don't understand how this token works..it is a token connected to a gold mining company?
Hi guys. These are serious questions and deserve non pr answers.
I’ll try…
With respect to XAUR etc.
It is not my business to critique different individual approaches to collateralised crypto. And definitely not in public. There are various acceptable and creative approaches. (it is a bit like designing a derivative or an maybe an equity offering at a bank. Lots of ways work and depends a little on what you want to achieve.)
But here is root problem: How do collateralise something in a way that dampens downside volatility, yet keeps upside participation?
I don’t favor vanilla wrapping i.e. 1 unit crypto backed by 1 unit of something (say gold, but it could be copper or live hogs). This is legitimate: but it raises the question…why not just invest in the underying product? You would however dampen downside volatility if you took this derivative design approach. It is questionable that you would get any extra upside juice.
Actually: you need to figure out how to either add gold to a fixed amount of crypto or possibly subtract crypto from a fixed amount of gold on an ongoing basis. This can done in a regular way or in lumps based on some milestone (price etc.)
There are various shops trying to create crypto structures that work in this respect. And i think that various counterparties are prepared to invest considerable effort in this sector gives weight to the core idea. In fact, my own interest stems from the fact that I think huge chunks or both equity and derivative like instruments will migrate to crypto.
So. And the white paper says this clearly. Yes they have mining partners. So that physical gold stream gets added into the Jinbi Token. Essentially they are financing a certain amount of gold production. As more gold gets added you can rationally expect the token to maintain loaded upside exposure. Hence their token price predictions.
It all makes sense and I am happy to take PMs via telegram to dig hard into details. I just don’t want to go nuts here for general audience.
Thanks
Crake
