Everything You Need to Know about Sudan Gold Coin Project

News / 08.03.2020

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 in the crypto-space. 

Sudan Gold Coin Project 101

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. 

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 emission of any amount of SGCs is authorized. 

These three elements are: 

  • SGC

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 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 gold ratio will increase each year, which is good news for every investor.

SGC Debit Card

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. 

Featured image courtesy of SudanGoldCoin team.

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.