The first cryptocurrency made its way into the world in 2009. Over the years, more cryptocurrencies have emerged, and the adoption of digital coins and blockchain technology will be significant in various industries globally.
However, even with the progress made over the last decade, cryptocurrencies are yet to achieve the milestones we would expect after ten years of existence. The primary reason why these digital currencies are yet to grow significantly is because of all the excitement surrounding the coins.
One area that cryptos are yet to explore fully is the gold mining industry. Crypto and financial experts have previously disagreed on the possibility of a partnership between gold and cryptocurrencies. However, it seems that the integration of blockchain and gold has begun with the world’s first such project looking to mine gold in Sudan; the Sudan Gold Coin.
So, what is the Sudan Gold Coin? Is it just another gold-backed cryptocurrency? Keep reading to find out more about this new project and what impact it will have on the crypto-space.
Introducing Sudan Gold Coin Project
As we have mentioned above, the excitement around cryptocurrencies is often the major hindrance to the growth of the digital coins. This is mainly because the stimulation increases the cryptocurrencies’ volatility. As a result, investors risk holding cryptos since the value of the money can increase or decrease at any time. Also, investors risk transaction inconveniences that are often too expensive to hedge.
The Sudan Gold Coin project aims to solve the problem of cryptocurrency volatility. Through this project, the team developers strive to develop a decentralized platform for trading gold and other precious metals. Investors on the platform will also be able to access market information about the precious stones from the platform.
This project is the world’s first attempt at integrating the blockchain technology with gold mining. The SGC project will see to it that the seamless integration of the blockchain technology into the production chain of gold mining establishes a high-tech and profitable mining in the country.
One of the critical features of this project is the SGC digital coin which will have its value anchored to that of gold. By backing SGC’s token price to that of gold, the project provides real-world value for the digital coins. The result is increased token price stability, thanks to the high stability and low risks of gold.
The pre-determined token price to gold ration is 1 SGC=0.001 oz of gold which translates to 1 SGC= 1.5 USD. After the IEO, free-market forces will determine the price of the SGC token. In total, there are 20 million SGC tokens for sale.
Sudan Gold Coin Project Legal Framework
This framework was designed to help maintain transparency during the IEO and project realization stages. It also helps to protect the investments already made on the SGC platform. Before any SGCs are issued, the three key players in the project have to agree.
The project uses smart contracts that require private keys. The three critical players all have unique signatures. All three signatures are required before the emission of any amount of SGCs is authorized. These three elements are:
- SGC Token- The SGC token will help finance the entire project, and as such, it is quite critical. The Sudan team will primarily focus on the coin’s stability. The revenue collected from the gold mining and sale will be used to purchase more SGC tokens from the exchanges, which will, in turn, guarantee the stable growth of the token price.
- Gold Storage Partners – The project will also bring on board large banks that would wish to tokenize their gold reserves. These banks and other storage facilities for precious metals have to consent to the exchange of their gold for tokens. Without this permission, there can’t be new token emissions. The project’s storage partner is a UAE company that will also act as a Foreign Direct Investor and trade the tokens on the platform.
- Audit Companies – These companies will help audit the entire gold production process. The companies will ensure that every SGC token has a gold reserve. They also have to give their signatures to authorize any new token emission. An Estonian company will provide the auditing facilities and act as the primary depository entity of the cryptocurrency
SGC Token Price Stabilization
Although investing in cryptocurrencies could be quite rewarding, the instability of the crypto markets and the high volatility of the digital coins often discourage many investors. The SGC token is offering better stability, given that its value is pegged to that of gold.
One of the team’s critical functions is to make sure the token’s price is always stable by regulating its supply on the blockchain. The project aims to achieve using a monetary policy that will be automatically executed by trading bots. These bots will use funds in the stabilization funds to either buy or sell SGC tokens as needed.
SGC will burn all the tokens used to buy physical gold from the gold storage partners. The token price will, therefore, increase each year, following the reduction of the SGC token supply in the blockchain. As a result, the tokens to the gold ratio will increase each year, which is good news for every investor.
SGC Debit Card, One Most Significant Features of Sudan Gold Coin Project
The SGC debit card is one of the most significant features of the project. This card will help solve the problem of cashing in and out while facilitating real-world payments using SGC tokens.
To use the card, users will first make a payment that will be processed by Visa or Mastercard networks. Aurix USD banking account will then transfer the USD payment to the merchant. SGC will then receive tokens from the user’s account, which it will use to exchange for gold and then back to USD, where necessary, to maintain assets in the stabilization funds.
Other key features that may soon be integrated into the SGC platform include crypto exchange functionality, funds withdrawal, an affiliate program, among others.
Key Players in this Sudan Gold Coin Project
According to the Sudan Gold Coin white paper, the project is a cutting edge blockchain project that aims to develop a revolutionary decentralized platform for trading gold and other precious metals and for receiving markets’ information on the same.
The project promises high transparency and high profits. As such, the Sudan Gold Coin project makes use of Ethereum Smart Contracts to maintain high levels of transparency and security of the investments already made into the project.
This blockchain-based technology also allows investors to keep up with real-time ICO legislation developments globally. A holding company in Estonia will be monitoring the investments to allow for an easy audit of the ICO project.
The Estonian holding company will be responsible for the development of the SGC platform. It will be the primary depository entity of the funds collected from the IEO and token sale. Besides the Estonian company, other key players are a Dubai Company and a Sudanese Company.
The Dubai Company will act as an FDI and will be the sole custodian of the gold mined in Sudan, while the Sudanese will hold the rights to mine gold in the country and accept foreign investments from the UAE company.
Key Advantages of this Sudan Gold Coin Project
Sudan covers quite a large area, and the country has quite an active mining sector. However, with the country’s diversified geology, the mineral potential in Sudan is yet to be fully realized.
Doing so would require vast amounts of capital and other resources that are not available in the country. As such, the government of Sudan is taking large measures with the SGC project to ensure that gold mining in the country is fully maximized by allowing a Foreign Direct Investor (FDI) to bring in the necessary funds.
Besides taking advantage of the country’s gold mining power, here are a few other advantages of the SGC project, including:
- Price stability. The use of the decentralized exchange model ensures that the SGC tokens offer more price stability than other tokens. This is primarily because the token’s value is connected to that of gold, making it just as volatile.
- Credible. Since the inception of the idea in 2017, the government has been looking into the place of mining operations. The government has put in place and continues to work on regulations, laws, and initiatives to protect the mines.
- Mobility. SGC has partnered with several key players in the banking industry. These partnerships will allow SGC token holders to exchange their SGC for fiat within a few seconds.
- Tax exemptions. Sudan exempts all mining projects from taxes during the first ten years of commercial production. The projects are also exempted from customs and other charges during exploration.
- Smart tracking. SGC project uses linked data and smart tags, which help to keep track of the supply chain process. Investors can track their operations from the point of origin until it gets to them.
- Airdrop Campaign. The project’s airdrop campaign is already live and set to end in about 28 days. Participating in the campaign could earn you 100 tokens, which are worth about $10.
Sudan Gold Coin IEO on ChainX, DobiTrade, and Exmarket
Following the announcement of the launch, the token SGC will be up for sale at 14.00 (KST) on 26th February. The sales period will continue up until 00.00 (KST) on 1st May, immediately after which the exchange will carry out the token distribution.
During the sales session, the price ration of the SGC to the USD will be 1:0.1 and will be based on the 14.00 (KST) coinmarketcap of the ETH price. The IEO project has a hard cap of 5,000,000 USD and a soft cap of 2,000,000 USD. Besides on ChainX, SGC also open IEO on Exmarket Launchpad and DobiTrade Launcpad. In 2020/3/16, SGC Start IEO on on both ExMarkets & Dobi LaunchPads.
Link to ChainX IEO: https://chainx.kr/announcements/1351b3d5-0388-4da9-8f5d-c3a4e69e6634
Link to Dobi Exchange IEO: https://www.dobitrade.com/ieo/sgc
Link to Exmarket IEO: https://exmarkets.com/launchpad/sgc-btc
For more information, please visit:
Official website: https://www.sudangoldcoin.com/
Telegram (en): https://t.me/SGCeng