I'm afraid @Posi was right when he said he guess you understand this project concept because you definitely misunderstand what the BM said when he said "Theoretically, you can do that, but practically it does not make any sense. You will have to pay for delivery and other payments when the gold will arrive in your country. It is much easier to sell GOLD token after the investment term will end and buy for that money physical gold in your country."
I don't misunderstand the bolded quote, I disagree that it's true, especially the part that says
Theoretically, you can do that
Because you can't, even theoretically.
Here's why:
1) The physical gold in the vault is stored under a
certificate in the name of Digital Gold, not yours. They own the gold. Period.
2) The physical gold is stored in 100g bars, so if you buy 50 tokens, what do you own? Half a bar? Half of which bar? Neither. You own 50 tokens.
3) If you live in/travel to Singapore, can you walk into the bullion office (a facility they offer), present your tokens, pay the $100 admin charge, and walk out with physical gold? No.
Digital Gold have stated quite clearly
Now it is not possible to redeem real gold for GOLD tokens
Therefore, we will not provide such a service in the near future.
This implies, by their use of "now", that this situation may change. Because of the points in 1) and 2), I don't see how it can. Or, more to the point, whether they want it to.
Meanwhile, this project was created a couple of weeks back and you can't aspect all features to be in place by now.
Redeemability for physical is not a "feature," it's a fundamental aspect of the project and any investors should be very clear on exactly what they are buying when they buy a [GOLD] token and that is a token, nothing more.
I don't claim that that necessarily makes this a scam or anything of the sort, but I can't help but take issue with the project admin on this subject, as they have made equivocal statements regarding this.
Unlimited amount of GOLD can be purchased/redeemed at our website instantly 24/7.
For example, the use of the word "redeemed" in reference to tokens. You "sell" tokens everywhere else.
More blatantly, in their T&C's
By purchasing Token you are purchasing a specific amount of physical gold which will remain deposited in Digital Gold vault. Hence you are the owner of that gold.
That's bordering on disingenuous, you are
not the owner of that gold, you are the owner of a token issued by a shell company which owns gold. That's a big difference.
I will answer, you can not redeem gold token for real gold, however for every gold token, equivalent amount of gold is stored in BullionStar wallet. Gold token's purpose is to act as an stablecoin, to help crypto people from market volatility.
That's correct, and has been my point all along.
It does beg the question however, what happens in the "Worst Possible Scenario"?
The WPS being that we wake up one morning and all the gold has been legally collected from the vault by Digital Gold Ltd. representatives on presentation of their Vault Certificate at the bullion office, and they've walked off down the street with it.
The current stock would fit in cabin luggage.
Remember, every gram of physical gold has already had 100% of its value realized by Digital Gold Ltd. by the sale of [GOLD] tokens, but they still retain legal and physical ownership and possession of it.
Cute.
What are the tokens worth in that scenario?
What is the smart contract worth then?
What do you, a token holder, do to track down the anonymous Digital Gold Ltd. team that "consists of highly skilled and experienced group of experts in finance, banking, legal, wealth management, IT and blockchain industry"?
Do you go to their registered office in the St Vincent and Grenadines? That's Suite 305 in the Griffith Corporate Centre,
an address shared by many controversial companies?Or do you phone their Hong Kong phone number, which runs on Central European Time?