INTRODUCTION
The world economy is littered with miscellaneous cryptocurrencies that fail to deliver on their promises and fiat currencies that are controlled by governments for the benefit of themselves. In response to this growing problem, Secured Gold Coin Pty Limited; based in Australia, has developed Secured Gold Coin (SGC coin), a cryptocurrency that is initially released 60 percent gold-backed coin, is completely decentralized, and is free from manipulation by any single entity. The initial released 60% gold backed coin means that the quantity of gold backing the coin at the time of initial release is not affected by the price volatility of SGC coin or Gold in the future. SGC coins are unique because they have been created specifically for global usage with a virtual wallet that eliminates the need to carry physical cash.
The advantages of SGC blockchain based software contracts (smart contracts) enable SGC coins to be decentralized, secure, and transparent for all users. SGC will initially employ standard digital coins that are exchangeable for specified cryptocurrencies and fiat currencies. SGC holders will have the ability to buy and sell their coins following the official listing on the public cryptocurrency exchange. All users of SGC coins are entitled to use their coins to make payments or remittances, to sell their coins on the cryptocurrency exchange market or to trade-in any amount of SGC coins. All physical gold bullion is stored and housed in a secured vault under the safe-keeping of Gold Silver Central Pty Limited in Singapore and the gold certificate will be updated at the end of every month. Contents insurance is provided by Lloyd’s of London. This insurance is applied to all gold bullion and covers the value of gold bullion in the event of theft, damage, or loss starting from 100 US Dollars.
Our strategic objective is to change the global market by providing a decentralized cryptocurrency to all users globally. At the same time, our vision is to serve the global community by advocating a fair market on the basis of actual demand and supply. By April 2020, Secured Gold Coin Pty Limited is estimated to have at least 250,000 users in the global market. This user base is expected to rise to 500,000 by December 2020.
Key Objectives
We focus on achieving three important goals. We believe the achievement of these goals is in line with SGC's best interestsusers and will provide intrinsic value to the community that receives SGC coins.
- First objective is to develop a secure, stable, and usable asset backed hybrid currency, thus digitizing the real-world assets.
- Secondly, we aim to supply digital assets that incorporate ease-of-access, transparency, and reliability in digital assets that can be used daily or held long-term.
- Finally, it is essential that principals of security, stability, and usability are embedded within the concepts of SGC.
Other than our key objective of providing a universal cryptocurrency for the users to trade hybrid digital assets (asset + utility), and make
payments, we are looking forward towards the goals that will lead the SGC coin to become global. With our SGC PAY Debit Card integration, the
SGC coin will be adopted as mainstream. The SGC PAY will open new ways of spending and sending SGC coins. The SGC Online Shop aims to
provide ways of utilization for our hybrid (asset + utility) coin. And finally listing our coin on global exchanges will make trading easier for the
users.
PROBLEMS IN CRYPTO MARKET
Challenges In Banking System
In the banking system, there are several monetary issues specifically in the cross-border payments settlement which is the base of our businesses today. The system has many inherent flaws and challenges that we need to overcome. Many of our businesses are struggling because of the drawbacks of our conventional banking system. The centralized banking system has been the root of the challenges. Banks being controlled by a central authority who demands the users and businesses to be dependent on it. So, even if it is a cross-border payment or even a transaction of one’s money from the banks, one is dependent on the banks to perform the transaction which also charges heavy fees in turn. These high fees in itself are not favourable for businesses as they gallop a part of the company’s profit. Moreover, we’ve not yet developed a fully automatic banking system and thus manual work is involved in making it prone to human errors. We’re dependent on a central bank for our data security and financial matters and thus are vulnerable. The databases where our financial ledgers are stored are also susceptible to hacking attempts. The biggest case ever recorded by FCA was the Barclay Bank case, where the bank was fined with the highest amount ever fined by FCA which was £72 million for poor handling of financial crime risks1 . However, the issues still persisted and Barclays Boss Mr. James Staley was again fined in the year 2018 jointly by FCA and PRA by an amount of £642,430 over the whistleblowing scandal2 .
Challenges Of Cryptocurrencies
To overcome the issues of traditional investments and stock exchanges, cryptocurrencies were introduced. A cryptocurrency is a digital asset designed to work as a medium of exchange using cryptography to secure transactions, to control the creation of additional units, and to verify the transfer of assets. Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies. Initially, they seemed to solve the problems faced in the traditional investment procedures but they have there inherent limitations and challenges as well. Over a period of time, cryptocurrencies are evolved in the following manner,
Currency Coins
Currency tokens/coins like BTC, ETH, and LTC were made just as a replacement for fiat money. They are used as a payment method and can be traded for real fiat. users have used them as investments owing to the trends of various cryptocurrencies showing an increase in valuation Bitcoin being on the top. But these currency coins specifically bitcoin have been incredibly volatile since its inception. The price volatility of bitcoin can be visualized from the graph below where the bitcoin index value for the end of October 2016 was 679 U.S. dollars reaching to 19,783.06 U.S. dollars on December 17, 2017, in just a year.
Utility Coins
Utility tokens/coins came into being after the evolution of currency coins. These coins are mostly used in ICO’s and expect an increase in value to the users by providing practical utilities to the users and platform users. The valuation of these coins is dependent on supply and demand cycles and are thus vulnerable to outside stimuli. One cannot guarantee a future profit while investing in a utility coin. Here’s a plot of 118 coins that have been floated onto the markets that have achieved at least an average of $250,000 market cap in any one year of their existence. The graph clearly depicts how the value of
most of the coins has fallen11
The visualization comes more interesting when the researcher zooms it by year. We can observe that an average coin performance is getting worse
over time.
Security Tokens
Security tokens and Security Token Offerings (STO’s) are the new things in the market. They were introduced to tackle the problem of currency
tokens and utility tokens. Security tokens offer dividends from the company’s profit to the users. They work the same as the stock exchange shares.
Security tokens are however more secure than utility currencies but the problem of losing all the investment in case of loss is still there. There is
just a need for a digital asset that can assure users of some guaranteed value to remove the insecurities. The predicted hype cycle also foresee a
fall in the liquidity of the security tokens in the upcoming years.
ASSET-BACKED HYBRID COINS - THE HOPE
After the introduction of Bitcoin and Ethereum, there has been constant research on improving the cryptocurrency market. The cryptocurrencies have kept on improving from a basic investment based tradable currencies to utility coins, security coins, asset-backed coins, and now the hybrid coins.
Asset-backed coins are the invention for the future. These are the blockchain coins backed by real valuable assets mostly at 1:1 ratio but can be changed depending on the need of a platform. Backing a coin with the real-world tangible or intangible object of economic value makes the worth of coin exactly the value they are backed for. Thus, there is never the risk of losing digital assets until or unless the worth of asset falls.
Of asset-backed coins, gold-backed coins are most secure and mainstream because of the stable gold prices. SGC, in order to provide the audience with the best asset backed payment option, has developed an initial released 60% gold backed coin that has the stability of gold and usability of crypto. The SGC coin will be 60% gold backed at the time of initial release which means that the quantity of gold backing the coin at the time of coin being released, will not get affected by the price volatility of SGC coin or gold in future.
SGC coin is not just an asset-backed coin but a hybrid coin that can be used for various payment options ranging from paying on an online e-commerce platform to point-of-sale payments through SGC PAY Debit Card. Hybrid coins are a thing of the future. Withholding all the properties of a secure and stable asset-backed coin as well as the usability of a utility coin, SGC is the solution to all the payment, and crypto problems the world is facing.
SGC HYBRID COIN
Benefits of Asset- Backed coins
Tokenizing assets has become a very advantageous source of making investments as it is turning the world into a massive stock market. There are some benefits of asset-backed coins given below:
Liquidity enhancement Asset tokenization enhances the liquidity of assets that otherwise have very low liquidity. It allows asset owners to capture liquidity premiums from assets that otherwise, due to low liquidity would not be actively traded because of low liquidity results in making assets expensive to trade.
Instant traceability via exchanges Liquidity matters when introducing a new type of asset; users will be nervous and so will want to avoid long-term lock-in. Real-time settlement offers instant traceability via crypto exchanges, which is the first step towards liquidity.
Diversification of risk Through tokenizing assets, people who cannot make huge investments can invest in some percentage of the whole asset making them able to get the ownership of one cheap part instead of an expensive whole. Tokenizing the asset allows diversification of risk such that one owner won't be much affected if the whole asset is damaged and lose its value because he has invested in a part of different assets.
Ownership transference without restrictions Asset-backed coins let the dealers and owners transfer ownership without the restrictions of temporal and territorial barriers as the coins can be sold globally.
A secure and cost-efficient way of getting ownership Asset-backed coins on blockchain provide secure, cost-efficient, and fast way of getting ownership as the transactions on the blockchain have low to no transaction cost.
Referral incentivization for influencers An influencer who has fractional ownership of an asset through asset-backed coins is incentivized for bringing more users or buyers into the asset.
Low administrative costs
Tokenization diminishes the administrative costs: due to
excessive documentation because smart contracts instantly
execute agreements that improve the speed of settlements.
Availability of assets’ ownership history
Trust through verifiability, transparency, and immutability.
This is where regulation is critical as we are in the scammy
era of Blockchain today. Tokenizing the assets using block
-
chain makes the asset securitization easier because the
owners can know the history of the asset about previous
ownership. Moreover, lawyers can make use of the transac
-
tions history to transfer ownership of the asset. In this way,
the frauds like occupying land illegally, in the real estate
industry would be minimized as complete history would be
available.
Tokenization provides several other security advantages
owing to its major prospects like unique, unable to be imi
-
tated, copied or double spent.
MARKET ANALYSIS
The Market Potential For Asset-Backed Coins
People often question how digital currencies can have value without being backed by any tangible asset. The answer is: they are more durable, divisible, fungible, scarce, and transferable than fiat currencies. But there are several digital currencies backed by tangible asset known as asset-backed tokens/coins. The most popular of asset-backed digital currencies are Gold-backed coins that have physical gold to sustain their value. The potential asset-backed coin market size is much bigger and encompasses different assets such as oil, gold, fiat currencies, diamonds, real estate, shares of companies, artwork, intellectual property etc.
Each of the different categories of assets: tangible and intangible assets (e.g., gold and copyright), fungible and non- fungible assets (e.g. crude oil and artwork), movable and non-movable property (e.g., cars and real estate), requires a different procedure and protocol of storing and tokenizing. Thus, it is needed that the assets must be held by a trusted party who can issue them in the form of coins, consider the substance of the assets, their storage capacity, and their valuation mechanism.
Market Stats For Debit Card Payments
The debit card payments have been increased massively as they have doubled as compared in 2006. SGC PAY Debit Card functionality will increase its demand owing to the huge usage potential of debit card payments. A study conducted by the US Federal Reserve in 2016 found that the value of transactions made using debit cards in the US rose from $2.1 trillion in 2012 to nearly $2.6 trillion in 2015; the volume of transactions in the US increased from 56.5 billion in 2012 to 69.5 billion in 2015; that is an increase in value and volume of 23.81% and 23%, respectively.
In India, the number of transactions using debit cards doubled from 133.97 million to 267.51 million in a period of 12 months14. Similarly in 2016, there were 13.11 billion debit card transactions in the United Kingdom; 3.74 billion in the Netherlands; and nearly 3 billion in Germany. This upward trend is forecasted to continue which only enhances the need and demand for SGC coins. SGC will carry the essential function of being able to be transferred between debit card holders as a result of Master Card and Visa Card integration. Similarly, according to statista, the USA has around 210 million Master Card debit cards in circulation at that time. Not only this, the stats in this regard say that there are 867 million debit cards being used by the users around the globe.
WHY SGC
Competitor Analysis
Most of the companies offering gold-backed digital currencies are reluctant to store any physical gold for avoiding the headache of security or any other risk involved. Moreover, they do not want to be dependent on any third party to get involved in their systems to ensure the security of their gold reserves. Secured Gold Coin with its partners, is ready to face the challenges as they store physical gold in a secure vault. Thus, when you become the user of SGC coins, the physical gold equivalent to 60% part of your initially released SGC coin will be attached to your wallet address and displayed on the SGC Blockchain Explorer. So whenever a user buys SGC coins, a gold certificate is attached to the wallet address of the user. Once the certificate is issued, the wallet address shall remain the same even if its traded to other addresses. Which means that the price and quantity of gold mentioned on the certificate against the SGC coin being purchased, will remain the same and cannot change on the re-selling, valuation, or devaluation of the same coin.
Another reason that sets SGC apart from other asset-backed digital currency based systems is its usability through the SGC PAY Debit Card. Secured Gold Coin Pty Limited is providing its users with this SGC PAY Debit Card functionality to increase the utility of SGC coins as the users can purchase different items by making payments via SGC PAY Debit Card: containing SGC coins.
Security
> The users will be able to track all transactions and these transactions will be immutable courtesy
blockchain technology
Stability
> The SGC coins are stable with their value because their value will not fluctuate or deplete as other
cryptocurrencies’ values have become.
> SGC coin is backed by gold which will remain on high demand that will keep its value stable. So the
users will get a definite benefit when they exchange SGC with fiat currency at a high exchange rate.
Usability
> Users can use secured gold coins for making payments while purchasing different items.
> They can use SGC coins for trading and exchanging them with other cryptocurrencies or fiat from
the global exchange.
> SGC coins are available to any new user as the Signup process is quick and easy.
SGC PAY
Debit Card
> As cryptocurrency has not been accepted everywhere till now, therefore it is a very useful way of
spending SGC coins using your SGC PAY Debit Card as it makes SGC coins usable everywhere.
SGC BLOCKCHAIN
The blockchain is a decentralized distributed ledger that allows secure, fast, and cost-efficient transactions to be made in no time. With blockchain, the data stored cannot be changed once entered which makes it an immutable distributed ledger. Being a decentralized and distributed architecture, blockchain allows everyone on the network, to take part in the transaction validation mechanism called consensus making it a highly trustworthy, secure, anti-fraudulent, and durable for data storage.
Due to these features, blockchain technology has been able to attract many of the industries so far in the recent times. The ultimate benefit of blockchain is that it allows digital information to be distributed but not copied, which can be accessed by anyone but prevents attempts at deletion, alterations, concealment, or falsification. Digital information can be duplicated over a network of thousands and this information can be updated regularly which is then instantly reflected in the network. Irrespective of how many times SGC coins are sold, the ledger of accounts will reflect the latest information. Each block in the blockchain consists of data that is embedded within the network as a whole, and by definition, it is within the public domain.
> Records and validate every transaction made, which makes it secure and reliable
> Discards the ned for any third-party for peer-to-peer transactions
> Users are in control of all their information and transactions
> Complete, consistant, timely, accurate and widely available
> Reduce transaction time to minutes and are processed 24/7
> The decentralized system, therefore, it is less risky to be hacked
COIN ECOSYSTEM
SGC coin is a hybrid coin which is being developed on SGC blockchain. SGC coin is a mintable, burnable, capped and pausable coin. The first released SGC Coin is 60% backed by gold and the rest of 40% is utility crypto part. The SGC coin shall be 60% gold backed at the time of initial release, launch and/or mine only, the gold weight will then remain static and the price shall vary depending on the latest gold price. An increase in the price of crypto (40% utility section of the coin) will not cause an increase in the price, value, or weight of the gold part and vice versa. It is important to note that the prices of both sections are independent of each other. SGC will be issuing gold certificates attached to the wallet addresses of first users, which can be validated from the SGC Blockchain Explorer as well.
For example if the SGC Coin at the time of release/launch/mining is worth $1, gold equivalent to 60% of this price will be allocated for the coin and the certificate shall be attached with the wallet address of the first users’ account. The coins details and gold per coin will be as follows.
Afterwards, the gold per coin shall remain the same and will be controlled by the latest gold prices, whereas the coin price of the rest of the part shall depend on the market demand and users.
Coin at Time Of Initial Release
Total Price Per Coin (USD) : $1
Utility Part Price Per Coin (USD – 40%) : $0.4
Gold Part Price Per Coin (USD – 60%) : 0.6
Current Gold Price Per Gram (USD) : $40
Gold Per Coin (Grams) : 0.015 gm
Coin at Time Of Initial Release
Total Price Per Coin (USD) : $10
Utility Part Price Per Coin (USD – 40%) : $8.8
Gold Part Price Per Coin (USD – 60%) : $1.2
Current Gold Price Per Gram (USD) : $80
Gold Per Coin (Grams) : 0.015 gm
ROADMAP
OFFICIAL LINKS:
WEBSITE - https://www.securedgoldcoin.com/
TWITTER - https://twitter.com/SGC___official
FACEBOOK - https://www.facebook.com/sgccoinofficial
TELEGRAM - https://t.me/securedgoldcoin_SGC
MEDIUM - https://medium.com/@SGC_official
AUTHOR
Bitcointalk Username: lani123lani
Profil Bitcointalk: https://bitcointalk.org/index.php?action=profile;u=1220105
Telegram Username: @lani123lani
SGC Wallet Address: 0xb4207BfB10326B405070Ad88dCAEe1dF938F8eb0
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