VoltrexGold (VXG)-A Gold-Backed Cryptocurrency
Introduction
Since the advent of bitcoin in 2018, cryptocurrencies have always been criticized for not having a physical backing. Added to this, there is high volatility, one of the main obstacles hindering mass adoption. VoltrexGold intends to disrupt the cryptocurrency landscape by launching a fully gold backed Ethereum based token and a payment solution. Furthermore, this will be the only coin in existence that will pay its coin holders a dividend.
VoltrexGold aims to create an inclusive financial system that empowers people to take charge of their finances. Also to reshape the global economy by democratizing wealth distribution, fostering economic growth, and promoting financial literacy. By leveraging the power of blockchain and smart contracts, we are paving the way for a more equitable and inclusive future.
VoltrexGold digitizes the value of gold with VXG. VXG gives holders the ability to own gold digitally, that are transferable with comparable low transaction fees.
To mitigate challenges in the landscape, the concept of gold-backed token has emerged. These tokens operate similarly to traditional tokens, except that they are backed by tangible gold, via allocated or unallocated gold storage. Stablecoins are a form of asset-backed cryptocurrency which was developed to address cryptocurrencies extreme price swings. A stablecoin is a cryptocurrency whose value is “pegged” to assets with stable value, including fiat currencies (e.g. USD, EUR e.t.c.) and precious metals. Gold-backed cryptocurrencies are special forms of stablecoins, the value of which are pegged to that of gold. Combining the innovative capabilities of blockchain technology with gold offers a convenient solution to the highly volatile cryptocurrency market. Furthermore, VoltrexGold will be attached to tangible mines which will eventually pay dividends to coin holders.
Global Gold Mining Market
The Global Gold Mining Market was valued at USD197.58Billion in the 2021. Global Gold Mining Market witnessed healthy growth during the historical period, on account of a significant increase in disposable income of consumers across the globe. Further, major factors driving sales of gold products include increasing, changing consumer preferences coupled with the rising population of high-net-worth individuals. Additionally, different customs followed by people across the world regarding the adoption of ornaments and gems are further anticipated to boost the purchase of products significantly.
Gold Mining Market 2020 turned out to be one of the most volatile in contemporary history, with a number of unusual events. The pace with which COVID-19 pandemic spread, the severity of the lockdowns, the scope of global government stimulus efforts, and the extent of the equities market bounce were all major factors. Further, higher gold prices and weaker local currencies drove the domestic price of gold to historical highs, negatively impacting the demand for jewelry.
Gold Mining is a global business with operations on every continent, except Antarctica, and gold is extracted from mines of widely varying types and scales. The rising demand for gold jewelry is driving the supply of gold. Many central banks, particularly in developing nations, are continuing to diversify their assets away from the dollar and euro, and are likely to increase their holdings in the near future. Gold has been considered one of the best sources of investment for centuries and is always in high demand regardless of any fluctuating economies and happenings in society. The high demand for gold ensures that jewelry holds its value and will always be easy to liquidate when needed, thus impelling the market growth.
Gold Market
From the time of an ancient civilization to the modern era, gold has been the world’s currency of choice. Today, investors buy gold mainly as a hedge against political unrest and inflation because of gold’s low correlations with other asset classes. In addition, many top investment advisors recommend a portfolio allocation in commodities.
There are many opportunities to invest in gold, including bullion (i.e., gold bars), mutual funds, futures, mining companies and jewelry. Many people think of gold bullion as the large gold bars held at Fort Knox, Ky. actually, gold bullion is any form of pure, or nearly pure, gold that has been certified for its weight and purity. This includes coins, bars, and other forms of gold of any size. A serial number is commonly attached to gold bars as well, for security purposes.
One alternative to a direct purchase of gold bullion is to invest in one of the gold-based exchange-trade funds (ETFs). Each share of these specialized instruments represents a fixed amount of gold, such as one-tenth of an ounce. These funds may be purchased or sold just like stock. This method is, therefore easier and more cost-effective than owning bars or coins directly especially for small investors, as the minimum investment is only the price of a single share of the ETF.
VoltrexGold (VXG)
For thousands of years people have relied on gold as a secure, stable and safe store of their wealth. Physical gold carries no counterparty risk, particularly when considering the current elevated valuations of many global asset markets and large debt levels in many economies.
On a second thought, gold is a natural asset; VoltrexGold believes everyone should have it irrespective of who we are and what we are. VoltrexGold is developed to enhance digital assets and give it more value for its users in the community, we want to build a vibrant ecosystem and give all our community users the luxury to physical gold. VoltrexGold is an Ethereum Blockchain-Based (ERC20 Token), gold-backed cryptocurrency. VoltrexGold is expected to share operating profits by the possibility of offering quarterly or annual dividends. This will only be the first cryptocurrency in existence to produce a return for their investors.
Our mission is to redesign the DeFi by building gold mines and incorporating it with the technology of blockchain which will be mining gold on a daily basis, refined and be kept under a custodian, VXG price will be pegged to a physical gold price in our reserves. VoltrexGold ecosystem is building a bridge linking a digital asset and a physical asset under one portfolio for everyone regardless of their financial status. With VoltrexGold holders can have access to gold anywhere in the world.
VoltrexGold will incorporate with LBMA (London Bullion Market Association) and will be producing a standard gold which will meet the specifications of LBMA; VXG will be indirectly fungible with the interbank market, because VXG will also be registered under CME (Chicago Mercantile Exchange) and our gold quality will be a minimum of 99.5% fineness. This uniqueness will make VXG fungible with CME Futures Contracts that currently trade on average $45 Billion per day.
VXG holders therefore will have the ability to trade the arbitrage between CME Gold Futures and VXG, taking advantage of mispricing between these markets.
VXG is also designed to close gap between Traditional Financial Markets and Digital Assets Markets. A VXG holder can participate in both markets; Trading the physical asset for another commodity in the traditional financial markets or trading the digital asset for another digital asset in the digital assets markets.
VXG will be a tool for holding and rolling EPP trades. VXG will give gold investors physical backing without associated cost of holding and also come with guarantee on the physical gold.
VXG focus on three use cases; investors can gain direct exposure to the price of gold, having access to traditional financial assets like ETFs and a digital token for transactional purposes. Its main motive is to keep its value according to its own pegged asset, which is gold.
How It Works
New investor who wants to buy VXG needs to sign up on VoltrexGold official website, complete the mandatory ID verification process (KYC requirement as part of Anti Money Laundry policies). Registered and approved user can buy VXG on the official website or follow the link on the official website to the exchange platforms where it’s listed.
VXG will be trading against ETH, USDT and BTC. Holders that want to sell VXG can do so by going to any of the exchanges where VXG is listed.
VXG is fully compliant with ERC20 Standard; it can be swapped for other ERC20 compatible tokens which are on the same Ethereum blockchain on exchange platforms (centralized or decentralized).
Each VXG token will be pegged to the current price of 1 gram of gold (1 VXG = 1 gram) and will be capable of being fractionalized up to six decimal places and the smallest denomination of VXG is 0.000001. Same precision will be used for our ETFs; VXG holders can use the tokens for utilities and peer-to-peer transactions.
Redemption & Conversion
VXG holders can redeem their tokens for ETFs and convert back into physical gold or fiat currency.
VXG holders can convert their tokens to ETFs which gives holder the access to gold indirectly. A lookup link will be available for holders to check the quality and standard of the gold reserved. Holders ETFs can be traded on stock exchanges such as; CME.
VXG tokens can be redeemed for a physical gold stored with a custodian, which a service fee will be charged for the redemption.
Note: for holders to convert their VXG to ETFs or redeem to fiat currency/gold, identity verification will be required. For verified holders, the minimum redemption requirement for gold is 15000g and a service fee will be required.
Liquidity
VXG aims to become one of the leading asset backed token on Ethereum blockchain. In other to do this, liquidity will be vital. If there is not enough liquidity available in the market, the cost to buy will be higher and cost for sale will be lower than what’s considered fair market value.
We have three key factors that will drive significant liquidity in VXG:
- 1.Arbitrage relationships between VXG and traditional gold products
- As we know, VXG is indirectly fungible and will be tradable with traditional gold products, arbitrage forces will help VXG to closely track the price of spot gold.
- 2.Partnership with top market makers
- VoltrexGold will partner with top market makers who have access to both traditional financial markets and digital assets markets, which will be the key enabler for trading arbitrage in large scale.
- 3.Access to grade gold
- VoltrexGold will refine and distribute more than USD 5 Billion worth of physical gold each year, allowing VoltrexGold issues billions of dollars worth of VXG from its inventory. VoltrexGold will provide liquidity even in times of high demand to their users.
Road Map
- Q1 2023:
- Social media launch: VoltrexGold will be launched on various social media platforms to build awareness and grow its community.
Start listing & DEX liquidity program.
- Q2 2023:
- Engage and earn tool: VoltrexGold will launch an engage-and-earn tool on its Discord server, which will allow users to earn VXG for their participation in the community.
Start advertising program and marketing roadmap.
Website launch: The official VoltrexGold website will be launched to provide users with information about the platform and its offerings. - Q3 2024:
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Gold Mine Acquisition: VoltrexGold will acquire gold mines where gold mining activities will be carried out. All gold mined will be refined to the standard gold requirements of LBMA (London Bullion Market Association) 99.5% fineness transported to chosen custodians which will be insured and kept safe for users redemptions.
Expansion of Service: VoltrexGold will expand its services by providing a payment solution for online payments
Partnerships & Collaborations: VoltrexGold will form partnership with LBMA, CME and some other exchange platforms which runs commodities/digital assets exchange to expand its ecosystem, reach more audience and enhance its offerings.
Team
VoltrexGold is designed by a devoted developer and backed by a highly experienced and dedicated team with disruptive minds which come together to design the mobility of safe-haven assets (gold) by digitizing it for ease of mobilization.
Oluwadamilare .O. Odunuga
Owner/Founder/Lead Developer
WILLIAM .O. MENSAH
Co Founder/Advisor/Management
Soliu Mujeeb
Blochain expert/Community Manager
Abdulrahman Haruna
Marketing Officer
Vivian Grace
Community Admin
Aliu Naheem
Community Moderator
Otuya Icety
Web Developer
Mint Funds Allocation
- Gold Mine Acquisition
- 20% – VoltrexGold will allocate 20% of its funds towards acquiring gold mines, concession and equipments for mining operations. This will make VXG a stablecoin backed with a physical gold and makes it easier for all users to trade their holdings freely in any exchange platform, also eliminates the risk of volatility, increase holdings for existing users and attracts new investors into the ecosystem.
- Additional Liquidity Pool
- 15% – VoltrexGold will allocate 15% of its funds towards creating additional liquidity pool. With this allocation, it will help increase the liquidity in the platform and making it easier for users to participate in different DeFi protocols. Also, this will help attract more investors and users, which will increase the overall liquidity of the community.
- Airdrops & Rewards
- 5% – VoltrexGold will allocate 5% of its funds towards airdrops and rewards. This will be rewards for users who are putting extra ordinary efforts in growing the community, users participating in other activities in the community. This will help increase user engagement and create a vibrant community.
- Future Development
- 20% – VoltrexGold will allocate 20% of its funds towards future project development. Development of VoltrexGold will extend its operations, by building a multi-functional multisig wallet app that will be managing users financial activities like; peer-to-peer transactions, investment plans and payment solutions for online and mortal-to-brick merchants with DeFi ecosystem. We will also focus on research and development of new technologies that can be integrated into the community. This will help VoltrexGold to innovate in the DeFi community.
- Presale & ICO
- 10% – VoltrexGold will allocate 10% of its funds for presale and ICO for early adopters to purchase at discount rates before emerging the market fully.
- Audits
- 15% – VoltrexGold will allocate 15% of its funds to audits, we aim to indentify and address any potential security breach in our platform. This proactive motive ensures that our community, user’s funds and confidential information remains protected from intruders or cyber-attack. Safety of the community and our users is our first priority, which is why we allocate these funds for audits, to show our commitment to continuous improvement and exceeds industry security standard.
- Team Reserve
- 15% – VoltrexGold will allocate 15% of its funds for team reserve. This reserve will provide net for the team and ensure all resources needed to continue to build on the community over the long run. This reserve will also be used for paying legal and accounting services, hiring new team members and other unexpected expenses that may arise in building a successful community. This funds allocation will help VoltrexGold create a vibrant and sustainable community that continues to grow over the years to come.
Conclusion
In conclusion, VoltrexGold is a DeFi platform that aims to create an inclusive financial system that empowers people to take charge of their finances. Our vision is to reshape the global economy by democratizing wealth distribution, fostering economic growth, and promoting financial literacy. By leveraging the power of blockchain and smart contracts, we are paving the way for a more equitable and inclusive future. We prioritize security and transparency, frequent security audits, community driven decision making. As such, VXG connects the traditional financial market with the digital assets market, high level of trust, efficiency to the new and existing blockchain ecosystem.
