A company is building a decentralized platform to allow users to trade tangible assets such as gold for virtual currencies. It’s a novel idea which would also create a new digital token that wouldn’t be as volatile as other cryptocurrencies — its price would be pegged to gold.
Intrigued? Read on for details.
The Digital Gold Exchange
The name of this blockchain-based platform is Digital Gold Exchange, or DGE for short, and it promises to make trading with others “quick, safe, and without intermediary intervention.” Also, since the service would “live” in the “digital realm” — it would be accessible to both individuals and companies all around the world. The conversion rates will be based on the official market prices listed on gold exchanges in South Korea and around the world.
Beyond gold — which will be a primary focus for the platform — DGE’s white paper says the company will eventually expand to other precious metals, including diamonds, platinum and white gold.
For start, the idea is to make changing gold into tokens a fast and seamless experience, one that is well designed and not too dissimilar from the payment processing systems commonly used on e-commerce sites.
Establishing an ecosystem
It is hard to do it all by yourself; therefore, DGE has established partnerships with recognizable brands that should make for a “stable and reliable ecosystem.”
Among its partners are the Korea Gold Exchange 3M, the country’s largest gold merchant; and Happy Money, which is offering gift cards that can be used to make purchases with more than 500 brands in Korea. As a result of the latter deal, users will be able to exchange coins for these vouchers, and then use them in bookstores, restaurants, cinemas, music shops, coffee houses, and so on.
And that, apparently, is just a start with DGE aiming to struck even more partnerships over the coming months.
Two kinds of tokens
Digital Gold Exchange will have two different tokens; the first one is a utility token marked as TMTG, which stands for The Midas Touch Gold. It will be used for purchasing other cryptocurrencies on the platform.
A different token, marked as MDG, will be available for purchase with TMGT tokens and is only tradable on the platform. Pegged to 1g of gold as a certificate, it can also be traded to real gold at any time.
Digital Gold Exchange held presale for its tokens in three stages throughout May and June, and this was followed by an initial coin offering which ran from July 10-25.
The company aims to list its tokens on a number of coin exchanges over the coming months. By February 2019, it hopes to commence with diamond trading.