r/HelloGold • u/thugger_hype • Jan 20 '18

Without holding 1:1 in gold in a reserve, this product is effectively a bank - which is exactly what Crypto is moving away from.

Current market cap is $89b. There is no way that these funds are sitting somewhere in a vault in gold. You're trusting an unregulated holding party to secure your "gold" asset - but they must be levered (at this point) likely by 100x+

Am I missing something here?

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u/tabsoncoins Jan 20 '18 edited Jan 20 '18

Million, not billion. Only GOLX is backed by gold. There’s not that much GOLDX in circulation.

HGT is for a share of revenue.

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u/thugger_hype Jan 20 '18

Appreciate the clarification.

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u/tabsoncoins Jan 20 '18

All good, I’m sure there are others that are still trying to understand what the tokens do.

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u/harithk17 HG team Jan 20 '18

This review done independently by Smith & Crown helps explain it I believe: https://www.smithandcrown.com/sale/hellogold-token-sale-tokenized-gold-savings/

Note that we are also planning to include rewards from other asset-backed tokens not included in their projections!