Beware of fake gold backed tokens

[Barbut]

Right now I'm telling you guys that few projects that are backed by gold aren't even real and they are successful in this space, it all comes to say thing, there is no proof, imagine what kind of regulations it will required for a crypto to be backed by real gold? People are too foolish

Some new projects are ready to promise anything to attract people. Except for gold, I saw bounties that claim how they are backed by other precious metals, big industries, and markets. I don't fall on that, and it's stupid someone to believe in that. If they really are backed they would invest more and make better marketing campaigns, and all that would be paid in Bitcoins, not in their worthless tokens.

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[shaheer001]

Thanks for the good info Gold-backed tokens are more expensive thank normal altcoins and most investors lost their precious money. I never bought the gold-backed coins as they are expensive and riskier.

[OcTradism]

To beware of scam gold-backed tokens, people should know the legit project for digital gold token. They are definitely legit and you can check their legitimacy.

Gold availability can be checked in real-time on the website https://www.bullionstar.com/myaccount/audit account number 17081. The total amount in the vault is 9200 grams of gold.

[ANN] GOLD - First 100% Liquid Stablecoin Backed by Gold
Website: https://gold.storage/en/home
Whitepaper: https://gold.storage/wp.pdf
Marketplace: https://gold.storage/en/market. You can exchange BTC, ETH to GOLD or GOLD to BTC or ETH.
https://coinmarketcap.com/currencies/digital-gold/

[Reid]

Precisely.
We all have to be aware of any coin that is backed by any commodity.
It's not just gold out there. I saw diamonds and oil and whatever they will make up just to look like a legitimate project.
I haven't gone through checking them yet, I am not that keen into investing with those types.

Do you have any listing already of some of this gold-backed ICO that is trying to scam people?
I mean, just so we can warn them in advance.

[memed97]

Right now I'm telling you guys that few projects that are backed by gold aren't even real and they are successful in this space, it all comes to say thing, there is no proof, imagine what kind of regulations it will required for a crypto to be backed by real gold? People are too foolish

If you say "People are too foolish" then you are also foolish because you are already here even though you don't support the gold project, but projects like that are also born through this forum and there are those who support it and some who don't support it.

[OrangeII]

many projects in the name of gold in the making. Well, I don't really believe in such things. there are only a few projects that have proven to date that 1 coin they make is 1 gram of gold, and can be exchanged at any time. Well, because the project was a success, many projects tried to use the same concept. still pay attention to the development of projects like that so as not to be hit by a scam.

[aemma]

I'm forced to create this topic today because it's getting annoying how some new developers are creating gold backed tokens on this forum, please listen to me, some use cases are foul play in crypto space and gold backed tokens are one of them, many so called devs are building tokens but they have no proof that those tokens are backed by any gold yet some investors believed them, it's all lies, open your eye people...


The only way I can trust a token that's backed by real gold is if the project is from a gold company, verified and certified, I'm talking about well known real gold companies like

1. Kinross Gold
2. GoldCorp
3. Agnico-eagle mines  e.t.c
 
These are examples of real life gold companies, stand for the truth and stop promoting or patronizing unrealistic crypto projects

This is just the truth about these gold backed projects, it looks like I have even come across silver backed project as well, maybe one day we will see diamond backed project too. The thing is, most of these gold backed project are not realistic, they are just out to steal from investors with beautiful whitepapers and nothing more. Therefore I agree with you, the only way to prove they are authentic and really backed by gold is by getting registered and certified via prominent gold companies, anything short than this will likely end up being scam just like others.

[Vishnu.Reang]

I have never trusted any of the stablecoins, which claim that they are backed up with the United States Dollar or any other fiat currency. For the coins which claim to be backed up with gold or silver also I am going to take a similar position. These "backups" go against the principle of cryptocurrency. If anyone want to invest in gold, then let him invest in gold bars or gold ETF. What is the need to create a gold backed coin?

[Horionion]

You have made a good point, we have got some many fake dev and team parading themselves around claiming to have developed gold backed token. We need to be careful because we only have few that are truly backed by physical gold. We also need to understand that physical gold does not guarantee the success of any project.

[Tervelatuk]

I have encountered a lot of those kinds of projects and I don't really notice that they are successful. Some of them saying they have deposited gold on a particular bank somewhere but we can't really prove if it's real. So I guess that is why there are only few projects that succeed in that field. I know one project called DGX https://coinmarketcap.com/currencies/digix-gold-token/ the price is really equivalent to 1 gram of gold in USD, I am not shilling it just take a look.

i really doubt with their gold back up. how many fund they will allocated to this , and how do we proof it. many project developer thinking they will took advantage if admit their token backed by real gold. beside digix gold there is another projects that really have value with 1 gram of gold and also they have bounty campaign here.

[bitgolden]

I seen many project before claiming that they are gold backed and where they are now? ,they are not even give updates to their investors after the bull run happen and more of them is already forget their project ,.that gold backed thing has been use before don't be fall for a fake project they even made a silver backed project which we don't know if they really have the gold/silver that they are saying backed by it. Other project is using the form of mining a gold with fake proof that you can even see in Google once you search for it.

Yes, I am sure at least 10 to 15 projects had claimed like they were holding gold/bullion as reserve for the circulating supply of their coins/tokens but ended up like most other non-back-up based projects. Just claiming like having gold for reserve cannot help us, it seems. Some tried to trick us like they are having ETF kind of gold funds but none of them managed to sustain; it means announcing gold as reserve must be another way for deceiving investors of this community.

Fortunately I have never tried investing with the any of such good backed projects because when I was hunting for potential coins for investing I have come across people were asking lots of questions about proving the actual amount of gold being held up with one project. Some devs were thinking like if they are announcing like they are having big amount of gold as the back up for their coins, then people will easily start believing them; this must be the reason why we are having lots of gold backed coins.

There can be any one or two legit gold backed coins, still we must need to verify them in all possible means before investing with them. It is not that easier to hold gold for million dollars worth. So, there could be very less possibility for such a real project.

[LbtalkL]

I have encountered a lot of those kinds of projects and I don't really notice that they are successful. Some of them saying they have deposited gold on a particular bank somewhere but we can't really prove if it's real. So I guess that is why there are only few projects that succeed in that field. I know one project called DGX https://coinmarketcap.com/currencies/digix-gold-token/ the price is really equivalent to 1 gram of gold in USD, I am not shilling it just take a look.

i really doubt with their gold back up. how many fund they will allocated to this , and how do we proof it. many project developer thinking they will took advantage if admit their token backed by real gold. beside digix gold there is another projects that really have value with 1 gram of gold and also they have bounty campaign here.

We have the same perspective I have some doubt too, even they show some documents we can't say that it is real and genuine. But this project has already a value in the market and already trading, but who knows if they will disappear someday I hope not.  This is their website you can see some Audit documents reports https://digix.global/ Their total supply is 120,400 DGX so maybe they have deposited 120,400 grams of gold too somewhere if it's real.

[danherbias07]

I have encountered a lot of those kinds of projects and I don't really notice that they are successful. Some of them saying they have deposited gold on a particular bank somewhere but we can't really prove if it's real. So I guess that is why there are only few projects that succeed in that field. I know one project called DGX https://coinmarketcap.com/currencies/digix-gold-token/ the price is really equivalent to 1 gram of gold in USD, I am not shilling it just take a look.

I think I bumped into this once in this forum.
But their volume looks really low or is it because there are no market pairs in exchange? What happened to this project?

Being valued at $56 is right if it is equivalent to 1 gram right? So they are still on the right track.
Somehow they passed the nightmares of being dragged down whenever it is backed by gold.

Edit:

We have the same perspective I have some doubt too, even they show some documents we can't say that it is real and genuine. But this project has already a value in the market and already trading, but who knows if they will disappear someday I hope not.   This is their website you can see some Audit documents reports https://digix.global/ Their total supply is 120,400 DGX so maybe they have deposited 120,400 grams of gold too somewhere if it's real.

Thanks for the info.

[RealMalatesta]

We had something similar in our nation as well. They kept saying that they were backed by gold, and we asked them where the gold is and is there a proof and they kept saying that during the ICO process they haven't bought any and they would be when the ICO is over and they get the funding.

So what they were saying is, even if they are 100% legit and real, they do not have any golds and they want us to fund them to buy the gold and in return they would cover all the coins we have to gold when they get the money. What happens if gold increases during that period and they can't afford the same amount? It is hilarious to think that they failed to make a project that wouldn't work even if they are 100% real and not a scam, that is a very rare thing to achieve in the market these days.

[meanwords]

I think the fault here are the investors himself because of how investors tend to not ask for audit of the gold stored. Why would they invest in a project that doesn't have a legit audit anyway? There are good gold stablecoins projects out there that are doing their best to deliver services that the customers would want. Just like the DIGITAL GOLD project where you can see the gold audit and the certificate that they are legit (here). You can even contact them to verify. To be honest, I don't know how people are getting fooled by fake stablecoin projects when it's really simple that they are fake (when they don't have a products to present to the investors or doesn't have proofs that they own something).

[Sundilhan]

This has become the common practice by project developers, using the idea of tokens backed by either gold or other precious metals just to lure investors into parting with their funds of investment and at the end of the day, they exit with several millions of dollars in investors funds. Most of these projects often times have nothing to offer other than inflated and deceitful Whitepapers. Truth is, people need to be careful and do proper research and investigations before investing in any project. They aren't as they claim.

[Sebas.tian]

We all must be very careful about the projects we embrace, also, those projects we invest our hard earned money into. Gold backed projects came into cryptocurrency sphere during the 2017 which made thousands of them to claimed that they are backed by Golds. Today almost all of these projects can't be found as many have long gone into extinction. Don't be fooled again because most of these projects are just milking out  funds from behind, beware of them because most of them are scammers behind the scene.

[nicecrypto]

Such project claims they are backed by real gold yet some of them can't afford listing fee,  all this projects with such claims should be avoided, such project like jinni tokens, sudan gold coin, this project claims they are backed by gold since 2017 they have been in existence, although i can't even say if it is true but one thing I do know is this project manage to fool hunters without payment, very shady project.

[Mahanton]

I'm forced to create this topic today because it's getting annoying how some new developers are creating gold backed tokens on this forum, please listen to me, some use cases are foul play in crypto space and gold backed tokens are one of them, many so called devs are building tokens but they have no proof that those tokens are backed by any gold yet some investors believed them, it's all lies, open your eye people...


The only way I can trust a token that's backed by real gold is if the project is from a gold company, verified and certified, I'm talking about well known real gold companies like

1. Kinross Gold
2. GoldCorp
3. Agnico-eagle mines  e.t.c
 
These are examples of real life gold companies, stand for the truth and stop promoting or patronizing unrealistic crypto projects

Are you sure that these projects are really backed with real gold? I have known some projects that actually been backed with gold but not able to get traction nor become success due to lack of interest.
Its nothing new that project devs will be tagging off other ideas just for them to imply it into their own project and make it look more interesting. When we do talk gold then it do simply spark out someones interest thats why you cant really stop nor get rid of those people who do deal up even with fake ones.This isnt only limited on gold niche but also in others as well.

[XCANA]

The moment you heard it's backed by real gold FOMO spirit will take you, thinking this will be a easy shortcut to getting rich, since 2017 all tokens that are backed by real gold are now abandoned, left for dead, a big lesson have been learned already, I just hope newbies won't repeat the same

Very correct, once they read about the projects and finds backed by real gold, the next thing you hear is BOOM℅. This has made many investors loose their funds to scammers during the era of ICOs. I could still remember that, series of projects which I participated during the era of 2017 cryptocurrency bullrun never see the light we envisaged for them as good projects. They deceived us during that process and still coming back with same projects, we're tired and have learned our lessons. For those who still don't learn from the past, might be victim again.