Years ago, a pseudonymous cryptographer known as Satoshi Nakamoto introduced Bitcoin as a digital analog to gold: limited in supply, but secured by modern cryptography, and made for the internet age. Following in Satoshi’s footsteps, many tried to improve his original vision and thousands of alternative cryptocurrencies were born.
Despite significant recent developments and innovation, the market for cryptocurrencies remains somewhat niche. Cryptocurrencies have shortcomings that currently discourage mainstream use, in particular, high volatility and barriers to entry and exit. Karatcoin aims to solve these issues by creating a business ecosystem to solve the entry and exit issues. Backing each coin/token with 1 gram of gold at launch to address the volatility issues and use blockchain technology to solve any outstanding problems. In short create a unique cryptocurrency.
About Karatcoin
Karatcoin, found online at https://karatcoin.co/, is a platform to trade gold certificates, exchange Karatcoin tokens, as well as save and exchange currency using gold cards. The team aims to build a platform where millions of investors can go to find the best gold opportunities to invest, trade, and exchange without worrying about traceability.
Karatcoin vision is to create a people-powered new economy that focuses on decentralized financial services that ensure both stable and aggressive investments linked to market fluctuations, and which also fuel the financial collateral needed for future projects. At the same time, Kratcoin will also create an ecosystem for developers to utilize Karatcoin tokens (KCG) as a framework for various Ðapp developments, thus accelerating adoption of blockchain technology. The Karatcoin Project is a consultancy system that focuses on the development and mining growth of carefully selected gold mining companies.
Karatcoin's ICO provides a unique opportunity to invest both in crypto and real worlds by backing digital tokens (KCG) with a defined amount of physical gold. The amount of gold, assigned to each token initially, is constant and equals 1 gram of 99.99% LBMA standard gold secured in Safehouse Vaults.
How It Works
Karatcoin’s Platform is directly linked to operational gold mines that will receive financing to help increase their gold production. The more Karatcoin’s financing increases, so will the aggregated gold production of their mines, which in turn will increase the value of circulating Karatcoin tokens.
These mines will pay the interest due with physical gold extraction (doré gold bars, gold nuggets, gold dust, etc.) which will be stored at the official refinery and turned into gold ingots on Karatcoin's behalf. By leaving the raw material in its place of origin and protected in an authorized vault, Karatcoin will be able to minimize the costs related to transport and related taxes, thus optimizing transactions on the blockchain and allowing a more advantageous price for gold.
Karatcoin Products
Gold Certificates
Asset Gold Certificates consist of the PoA information permanently uploaded into the decentralized database. These gold certificates have a specific duration and a fixed revenue, ideal for anyone who needs a safe investment.
Each Gold Asset Certificate represents 1,000 USD of value. It also have different maturity dates and associated semiannual coupons with a bond yield ranging from 5 to 6% depending on its duration, which is paid in KCG. At maturity date, the redemption will be in KCG.
Gold Cards
Each Gold Card represents a personal wallet inside the Karatcoin Blockchain where Gold Products are stored. This card has several advantages:
- The physical gold asset is safely stored in a protected area (Vault);
- Gold Asset Card refers to allocated asset;
- All Gold Card Certificates are held in a Cold Storage Wallet.
Karatcoin Cryptocurrency tokens
Karatcoin Gold Token (KCG):
KCG is the token used in the Karat Blockchain. It represents 1 gram of 99.99% LBMA standard gold secured in Safehouse Vaults, which means the gold is safe from political influence and will preserve and increase its value over time.Karatcoin DAO Token (KCD):
KCD is the coin token that will be created during the Token Sale and deployed on Ethereum (ERC20 Standard Smart Contract). KCD will migrate to the Karat Blockchain in a 1:1 ratio once the Blockchain is ready.Karat Blockchain Token (KCX):
KCX is a crypto-currency that is a fast and comfortable payment method with a worldwide scope; it's private and anonymous enough to serve as payment method for several markets and any other economic activity.
KCX will give owners the right to vote for all the activities of the Karat Foundation (including the choice by vote of the gold mines to be financed), as well as the operational and fundraising activities that the Foundation provides for participating mines and their surrounding communities.
KCX will also be used as stake to validate blocks on the blockchain (DPoS Consensus).
Conclusion
The basic concept behind gold-backed cryptocurrencies is that a token or coin can be issued, which represents a given value of gold. The gold is then secured by a trusted third party and can be traded with other token holders. Doing so makes sure that a minimum value of the token is kept. The gold’s value is based on the price of the day, so even if it hits the minimum, the token will still remain equal to the current gold price.
Karatcoin cryptocurrency value backed equals 1 gram of 99.99% LBMA standard gold secured in Safehouse Vaults. Karatcoin works by financing the operational gold mines to help increase gold production. The mines will pay the interest due with physical gold extraction, which will be stored at the official refinery and turned into gold ingots on Karatcoin's behalf.
However, like all investments, gold-backed cryptocurrency also comes with some risks, mainly concerning the physical storage of gold. Investors are urged to carefully assess the third-party backing their prospective crypto-investment, as well as the security measures in place.
For more information about Karatcoin, you can visit the following links:
Website: https://karatcoin.co/
White paper: https://s3-eu-west-1.amazonaws.com/karatcoin.co/files/docs/KC_WP.pdf
ICO Webpage: https://karatcoin.co/#tokenSale
ANN Thread : https://bitcointalk.org/index.php?topic=4932340.0
Telegram: https://t.me/KaratcoinGroup
Author: Binar Bumi
Bitcointalk Profile : binar234