Gold Backed Cryp - Squarespace

Insights, Ideas and Tools for the New Economy

October 2017 - Report #4

GOLD BACKED CRYPTOCURRENCY The Price of Gold /SWOT Analysis / GBC

THE LURE OF GOLD “Put forth thy hand, reach at the glorious gold.” -William Shakespeare

We take a look at the evolution of gold as a store of value to the advent of digital currencies and the use of gold therein.

SWOT ANALYSIS We analyze the current state of gold backed cryptocurrencies by way of a SWOT analysis in order to determine the strengths, weaknesses, opportunities and threats facing them as they move deeper into the consciousness of the financial mainstream.

GOLD BACKED CRYPTOS AND EXCHANGES “Although gold and silver are not by nature money, money is by nature gold and silver.” - Karl Marx

We provide an overview of current, pending and past digital currencies that are backed by gold in addition to new gold blockchain exchanges being introduced.

© The Hutch Report

www.thehutchreport.com

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Introduction The Lure of Gold Gold. One of the 92 natural elements occurring on earth and thought to be produced from the collision of stars as the earth was being created. It is the most pre-eminent precious metal on the planet. The human fascination with gold dates almost as far back as we can see as evidenced by collected gold bits found in Paleolithic era (40’000 BC) caveman dwellings. It is currently estimated that approximately 185k to 200k metric tons of gold are mined and above ground. While no one seems to know for sure, scientists estimate that there are vast reserves for gold still buried within the earth, however, at some point mining it will no longer be economical. According to the World Gold Council as well as the US Geological Survey, most of the mined gold has ended up as jewelry. Following jewelry, the next wide spread use of gold is as money and stored value in vaults as bullion Only about ten percent of gold is used in industry. Among the most interesting industrial properties of gold are that it is resistant to corrosion, highly malleable, ductile (eg. it can be stretched very thin, for example into wires for carrying electrical current or used within electronic components, without losing its toughness), is not toxic to man, and is resistant to most acids. © The Hutch Report

Up until the 20th century most governments used a gold standard as a monetary policy. In other words, each economic unit of currency was based on some fixed quantity of gold that governments would hold in reserve. Most governments moved away from a gold standard to fiat currency. Fiat currency is legal tender that is not backed by any physical commodity. The principal reason governments moved away from a gold standard was to enable the ability to stimulate their economies through monetary policy. The primary two levers of monetary policy are the quantity of currency in circulation and interest rates. When currency was tied to a gold standard a government would have to procure more gold in order to increase the currency supply. In effect, the gold standard was conceptually a precursor to digital currencies. Instead of a digital ledger insertion and public key, people would exchange pieces of paper with each other that represented a stored value in gold. That paper become very expensive for governments, not only because of the increasing amount of gold to procure and manage, but also ever increasing costs for special papers and inks in order to avoid forgery. In hind-sight it looks quite obvious that the evolution of computer technology would enable more efficient systems than paper for exchange of value and lead to the development of digital currencies. Bitcoin and blockchain technology were not the first such steps in the evolution of digital currency, albeit they are major steps. The specs for Bitcoin were only published in 2008. There were several pre-cursors. One of the most notable was DigiCash. DigiCash which was founded in 1990. While it was not a gold based digital currency, it was notable in its use of public and private keys and digital signatures. It ultimately went bankrupt in 1998. Despite the move away from a gold standard, gold has retained an eminent position as a store of value. With the evolution of blockchain technology it seems quite natural that developments would be made to deploy gold backed cryptocurrencies. Aside from developments such as DigiCash, others had begun experimenting with more efficient ways enabled by computer technology for the buying, selling and spending of gold well before the advent of the blockchain. www.thehutchreport.com

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There are many systems for digital gold currencies that were developed. Some of these are still around today while some have crashed and burned. While the development of cryptocurrencies rages on with all sorts of niches, bubbles and real value yet to emerge we thought it would be worthwhile to take a look at what determines the price of gold, in addition to, the Strengths, Weakness, Opportunities and Threats (SWOT) of digital gold currency systems and evolution in light of blockchain technology.

This chart of historical data for real (inflation-adjusted) gold prices per ounce goes back to 1915. The series is deflated using the headline Consumer Price Index (CPI) with the most recent month as the base. The current price of gold as of September 12, 2017 is $1,330.60 per ounce. 

© The Hutch Report


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WHAT DETERMINES THE PRICE OF GOLD? The establishment of gold prices is complex. This is just a short introduction to some of the principal actors involved in influencing how much you would actually pay or receive when buying or selling gold. Further complexity is added when these mechanisms are combined with the market forces impacting the trading prices of the cryptocurrency tokens based on gold. Before discussing gold prices a distinction should be made between spot prices and future prices. A spot price is the price to settle a commodity contract immediately including both price and delivery terms. It is being settled "on the spot", hence the name "spot contract." A futures contract occurs in the future, not immediately, hence the nomenclature "futures contract." The actual price of gold that can be bought and purchased on exchanges and through precious metal dealers is influenced by what levels gold is trading at for both its spot price and its futures price. The two main influences of gold contract prices are the prices that are set in London by the London Bullion Marketing Association (LBMA) and on Comex in New York. Comex is the name of the precious metals commodity exchange and is run by the CME Group. The LBMA Gold Price is set twice daily in US dollars at 10:30 am and 3:00 pm, local time in London, each business day. According to the LBMA website, the direct participants who have been accredited to contribute to the LBMA Gold Price are: Bank of China, Bank of Communications, China Construction Bank, Goldman Sachs International, HSBC Bank USA NA, Industrial and Commercial Bank of China (ICBC), INTL FCStone, JP Morgan, Jane Street Global Trading LLC, Morgan Stanley, Societe Generale, Standard Chartered, The Bank of Nova Scotia ScotiaMocatta, The Toronto Dominion Bank and UBS. Comex is an exchange and allows trading between clearing firms. The hours in New York for gold futures trading are 8:20am to 1:30pm, local New York time, each business day. Outside of these hours, gold is traded via the CME Globex exchange which allows almost 24 hour a day trading. For further reading on the price of gold an interesting scholarly paper has been published by authors Hauptfleisch, Putnins and Lucey respectively in coordination with University of Technology Sydney, Stockholm School of Economics (Riga), and Trinity College Business School (Dublin). This paper is currently available here: https://acfr.aut.ac.nz/__data/assets/pdf_file/ 0009/29790/T-Putnis-GoldILS-v4.3.pdf 

© The Hutch Report


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SWOT ANALYSIS

© The Hutch Report


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STRENGTHS Additional Security of a commodity These cryptocurrencies offer the security of a commodity such as gold and the increased investment return potential of forces like market premium. As an example, Bitcoin has no asset backing and is trading more than the price of gold. Thus Bitcoin's value is totally market premium.

Can’t be devalued by production of more coins A fixed number of gold units (linked to and backed by 100,000 ounces of 24 karat gold) would prevent the production of more gold coins. This means that unlike fiat currencies and cryptocurrencies, a properly gold backed cryptocoin couldn’t be devalued by the production of more coins.

Trading on open market exchanges Speculators and investors trade coins on the open market and exchanges, like other cryptocurrencies, or will hold onto their investment while seeking capital gains on both the increase in gold value and the market premium driving factors.

Rapid Transfer These digital gold tokens have the benefit of technology. You can transfer the ownership of these tokens to someone on the other side of the world in seconds. It is almost just like sending gold to the other side of the world almost instantaneously.

Self-Interested, Self-Policing Communities The market and ecosystem is still young. While there can be debate about whether self-regulated industries and communities indeed work there is a lot of doubt that centralized regulation of cryptocurrencies will work. Most of the cryptocurrencies have explicit voting mechanisms built into the platform along with an active community that is interested in the health and growth of the ecosystem. By nature the distributed ledger concept requires the community to "sign-off" on transactions and any bad apples can be quickly identified by the crowd.

© The Hutch Report


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Fewer Barriers to International Transactions Sending money or making international payments in the existing banking system is not an easy process. One has to deal with multiple issues including currency conversions, different banking standards along with clunky and often insecure processes with a bank. For example in Europe the common bank identifier used now is called an IBAN (International Bank Account Number) with a specific format. Sending money within Europe is usually simplified as most banks recognize this. However, if you are sending money to or from the USA for example, the US does not use IBANs and you need to figure out whether to use SWIFT or BIC codes are ABA routing numbers. Once one has determined the right formats and mechanisms for placing an order it can then take several days to execute. Compare that to using a cryptocurrency payment which simply involves specifying the public key of the recipient, the amount to send, and sometimes a choice between higher cost and faster routing or lower cost and slower routing. It takes less than a minute to post a payment or send money to a cryptocurrency wallet anywhere in the world.

Harder for Governments to Interfere While there are certainly cases for payments to be blocked to nefarious organizations and individuals, the government mandates that financial service providers enforce OFAC blocks and sanctions. Unfortunately many of the methods used are ineffective and end up delaying or blocking perfectly valid transactions. There are countless stories of aid donations being blocked to Syrian refugees simply because the word "Syria" was used in the message or payment instructions.

Low price volatility due to gold backing Cryptocurrencies and in fact, other currencies, that are not backed by gold may be subject to extreme volatility due to factors which may include speculation, inflation and deflation. The backing of a cryptocurrency to a set amount of gold should limit the volatility of it ... at least no more volatile than the price of gold.

Smoother Learning Curve The higher transaction costs and trust requirements associated with gold-backed digital currencies puts them at a disadvantage to purely digital currencies, but that doesn’t mean that they are totally useless. Having a token that acts as a hybrid between tangible and digital media of exchange builds a useful psychological bridge for gold bugs initially being exposed to cryptocurrency. This hybrid could ease newcomers into the digital currency world, making the learning curve seem smoother. Whether or not the users of such currencies complete the transition to totally digital coins, though, depends on whether or not they value decentralization and affordability over familiarity.

© The Hutch Report


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WEAKNESSES Unpredictability The value of gold may drop. While gold has long been considered a store of value, that value is a perceived value, and that value is sustained by the belief of those that believe in it. Those that have caught the gold bug are ardent defenders of gold and will also state that it also has value in industrial usage. Fifty percent of the gold market today is in jewelry, forty percent is investing and only ten percent is in industrial usage. If the faith and belief in gold as valuable ever drops and fashion desires change, the industrial need is unlikely to make up for the difference. If gold does go up in value it usually coincides with a decrease or devaluation of paper money so the gain is nominal.

Tax and reporting if used as everyday spend Some of the gold backed cryptocurrency platforms we reviewed offer a debit card linked to the user account to enable conversion to fiat currency for every day spend. This debit card works just like a normal bank card and runs over the rails provided by the networks such as Maestro, Cirrus, Mastercard, and Visa. For countries where capital gains are taxed, such as the US, using a bullion backed debit card linked to a cryptocurrency account for every day spending incurs the requirement for gain and loss reporting for each transaction. This is true whether or not it is a short-term or a long-term gain. When you take the money out, or in this case spend it with the debit card, it means you may have extra tax to pay making your purchase more expensive. At the very least there are extra tax reporting requirements. At the time of this writing the maximum amount someone could be taxed on a short-term capital gain is 35% in the US.

Storage and Security costs passed to account holders While the companies offering bullion services take care of all the hassle of physical storage for account holders, the issue of physical storage still exists and these costs are passed onto the account holders. • The requirement to store the physical gold that is used to back the holdings of account owners implies storage costs that are passed on to account holders. • In addition to the pure storage space it requires maximum security which also incurs additional costs over and above the simple space. • Additionally, administrative processes may add additional overhead to track and map the physical gold to its owners. This may be somewhat lighter if done via a blockchain.

Non-reversible transactions Typically the issuers of digital bullion backed currencies do not have services to dispute or reverse charges. © The Hutch Report


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Issuance of additional tokens As far as a gold-backed cryptocurreny token’s protocol is proprietary, its users must trust the issuing firm. Since the tokens represent ownership over a physical supply of gold, they will most likely be pre-mined to match the amount of gold owned by the issuing company — and later to match the amount of gold deposited by customers. Therefore, the issuer will have the ability to create tokens in excess of its gold reserves, allowing it to operate with fractional reserves for its own benefit. Aside from devising a decentralized gold token, the only choice users have is to trust that the issuer will not engage in questionable activities.

Added Costs Having a digital currency tied to gold drives up transaction costs. When a digital transaction takes place, and the ownership of physical gold changes hands, the gold storage facility will have to alter its records. Managing the records requires labor; even automated processes would have high capital and maintenance costs. These expenses would be reflected in transaction fees, meaning that the gold-crypto hybrids are not as “cheap” as pure digital currencies.

Lack of oversight An issuing firm can also use its gold reserves without the knowledge of its depositors. Since gold is not linked to a decentralized protocol that automatically logs all transactions — like Bitcoin’s blockchain — a customer will have a hard time knowing whether or not the firm is using his or her gold for personal gain. This practice also qualifies as running fractional reserves which, depending on the stipulations of the deposit contract, betrays the trust of the depositors.

Not 100% backed by Gold Those that aren’t linked to a fixed amount of Gold, 100% backed and redeemable (by physical delivery of your Gold portion) we wouldn’t consider to be Gold backed. Otherwise one could make the argument that any fiat currency is Gold backed (where the issuing country has official reserves).

© The Hutch Report


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OPPORTUNITIES Crypto traders Participants can use the fact that the cryptocurrency being traded is backed by gold in order to hedge the cryptocurrency volatility. In addition, Gold could also be used to convert those cryptocurrencies directly into fiat money.

Standard investors Standard investors would have the opportunity to purchase gold as a cryptocurrency or as a type of security.

Ecommerce and self-employed individuals Gold can be used to pay for goods and services. Its low volatility asset and predictability make it an invaluable form of currency.

Banks Gold cryptoasset give banks new opportunities. There’s free liquidity and extra earning potential from trading gold into fiat and the reverse. Cryptocurrency has become a massive industry. Banks can profit from earning standard commissions, commissions on gold storage, and from using the GoldMint cash management system. At the same time, banks that invest in gold reinforce gold’s reputation, which increases their profit. Banks also earn commission from participating in the GoldMint partner program.

© The Hutch Report


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THREATS Confiscation risk If a government decides to confiscate or seize gold it may seize gold directly stored in the bullion vaults in that country.

Non Adoption by Consumers One of the major problems with cryptocurrencies is that they are hard for non-techies to understand. If you can’t easily explain it in 5 minutes or less, it will be difficult to sell. Bitcoin may stick around and be used on a limited basis for a while to come, but it is hard to imagine that it can come anywhere close to competing with the dollar if the masses do not adopt its use.

Government Intervention How it all ends is yet to be revealed. Government intervention, so far, has been restricted to closing cryptocurrency exchanges where there has been evidence of fraud or money-laundering. Some governments ban cryptocurrencies altogether, though it is hard to see how such a ban can be enforced. However, if governments decide to put an end to the cryptocurrency phenomenon, they can probably do so collectively through bank regulation, instructing banks not to open accounts for any commercial entity involved with cryptocurrencies. We have recently seen this in China closing the cryptocurrency exchanges. The motives for government intervention are not hard to see. At the top of the list for governments with intractable budget deficits is tax evasion, real or imagined. Money laundering is a second reason, but this is often a cover for the first. Alternatively, it is possible governments will become concerned at the bubble-like characteristics, and wish to contain the financial damage to ordinary tax-payers when the bubble bursts.

Counterfeiting While difficult, it is not impossible to make counterfeit gold. In 2008 it was discovered that millions of dollars worth of gold at the central bank of Ethiopia was counterfeit. The fraud was spotted when the fake gold was being sold to South Africa and they noticed that it was goldplated steel. Although the mathematics of the blockchain makes it extremely difficult if not impossible to counterfeit cryptocurrencies, the asset backing it, namely gold, is still a physical asset being held in a vault somewhere, where it could be tampered with.

© The Hutch Report


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CRYPTOCURRENCY AND EXCHANGE ANALYSIS In the following section we take a look at gold backed cryptocurrencies that are live and launched, pending launch, or launched and now defunct. The list of companies we have examined are:

Live and launched: • Anthem Vault which has launched two tokens INNcoin and the Hayek • Copetis which we are not actually sure if this is live and launched • Digix which has launched the DGD DAO token and the DGX gold token • GLD International Inc which has launched the CryptoGLD token • LAToken which has lauched, surprise, surprise, the LAT token. • Orebits which has launched using digital certificates called Orebits. • Ownbullion which looks like it is launched a token labelled Own Token, but status is unclear. • OzCoin Gold which is affiliated or associated with GLD International and their CryptoGLD token • Xaurum which has launched the XAU token. • YoGold which launched with YoCoins but status is unclear. • Zengold which has launched the ZGC token

Pending Launch • AUcoins with token tbd • Codetract with token GCT • Digital Gold trading as BullionCoin with token XAAU • Goldmint with token MNTP • HelloGold with token HGT • One Gram with token OGC • Orocrypt with token OROC

Defunct • eCache • eGold • iGolder • Liberty Reserve • Pecunix © The Hutch Report


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Most of these platforms function more or less in the same way. • Primary market participants buy physical gold and hold ownership title and then they authorize the platform to “mint” crypto tokens against this. In some cases the primary market participant is the organization that is running the platform. The “minting” of the crypto token is effectively a digitization of the ownership title. The organizations that are launching these crypto services typically partner with vault service providers, security service providers, bullion exchanges, and auditing companies. • The minted crypto tokens are then sold on a cryptocurrency exchange. • The crypto tokens traded by investors that have bought them serve as title of ownership and are linked to whatever amount of gold per token has been established by the issuing platform. As stated in the SWOT analysis, the value of the token may fluctuate and may have a price of its own depending on what people are willing to pay for them; presumably that price would never dip lower or much lower than the actual contract prices for gold. We have done our best to gather what is out there today but we may have also missed a few in each category. We have created a listing for each, along with key criteria, to enable readers to compare and evaluate. You can get a feel for how robust the various platforms are based on comparing some of the main criteria as well as even whether or not the platform or organization has defined all of the key criteria in the documentation they have made publicly available. 

© The Hutch Report


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GOLD BACKED CRYPTOCURRENCIES LIVE AND LAUNCHED

© The Hutch Report


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Insights, Ideas and Tools for the New Economy  


Anthem Vault, Inc (INNcoin & Hayek Gold) Key Individuals:

Anthem Hayek Blanchard (Co-founder), Cynthia Blanchard.(CoFounder)

Website:

https://www.anthemvault.com , http://www.inncoin.co/, http:// hayekgold.co

Incorporation:

Nevada incorporated, with oparations in Austin, Texas

Birth:

Anthem Vault 2011 / INNcoin 2014

Current Status:

n/a

Private/Public Exchange Ticker:

Private

Financially Regulated:

No but is regulated as a precious metals dealer subject to AML and OFAC requirements

Sharia Compliant:

Unknown

Ability to redeem physical gold and conditions:

Yes, but only permitted if account can cover a full bar of 32.146 ounces of gold. (About US$42.5k). All costs involved in delivery of a bar or bars are passed on to the account holder at cost.

Gold standard (eg. LBMA quality or other)

Only works with refiners that adhere to LBMA standards.. Anthem Vault has bars tested prior to entry via ultrasonic gauges to test authenticity.

Gold in storage:

Unknown

Vault Location(s):

Salt Lake City, Utah

No. of user accounts or DGC holders:

Unknown

Everyday spend debit card provided:

Not yet, waiting for regulatory clearance

Digital and Cryptocurrency transfers accepted (eg. Bitcoin):

No

Wire transfers accepted:

Yes

Credit card accepted:

No

Buy & Sell Fees:

1% over spot rate to buy or sell.

Annual storage fee:

Gold 0.36% , Silver 0.6%

Transaction fees (between users): n/a Comments

© The Hutch Report

The Blanchard family have a long history in the bullion business and Anthem worked previously at Goldmoney.


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CMO, Inc (COEPTIS) Key Individuals:

Bill Cunningham, Doug Jackson (adviser but no formal role)

Website:

coeptis.org Domain is redirected to: coeptis.com (not functioning)

Incorporation:

Hawaii

Birth:

2014

Current Status:

On going concern not certain


Gold Standard Gold (AUG)


Unknown

Sharia Compliant:

Unknown


Undisclosed


Undisclosed

Gold in storage:

Undisclosed

Vault Location(s):

“Allocated Storage”


Undisclosed


Unknown


Unknown


Unknown


Unknown

Buy & Sell Fees:

Unknown

Annual storage fee:

Unknown

Transaction fees (between users): Unknown Comments

© The Hutch Report

The currency is named Global Standard Gold. This is supposed to be a gold backed crypto currency. Either the service is extremely private, member only and under complete stealth mode … or it is offline. Douglas Jackson previously founded EGold, which was shut down by the Department of Justice.


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DGX (Digix Global PTE LTD) Key Individuals:

Teo Hye, Kai Chng, Anthony Eufemio, Shaun Djie, Chris Hitchcott

Website:

https://digix.global

Incorporation:

Singapore

Birth:

Unknown

Current Status:

N/A


The DAO token (DGD) is ttraded on crypto currency exchanges: Bittrex, EhterDelta, Liqui.


No

Sharia Compliant:

Unknown


Not under normal circumstances. If DIgix folds, blockchain proof generated can be verified and would most likely need to go through court proceedings to recover.


LBMA certified gold bullion sourced through their partner ValueMax Singapore.

Gold in storage:

Each DGX represents one gram of gold. Additional DGX can be created whenever more gold is purchased and stored at the Digix gold vault custodian facilities.

Vault Location(s):

Singapore


Undisclosed


No


It will trade as its own token, DGX.


No


No

Buy & Sell Fees:

0.13%

Annual storage fee:

0.60%

Transaction fees (between users): 0.13% Comments

© The Hutch Report

DGD (DAO token) is trading but DGX does not look like is is trading yet as of the time of this writing.


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GLD International Inc., (Trading as CryptoGold) Key Individuals:

Mr Johannes Breytenbach, Mr Mark J Lynch

Website:

https://cryptogld.com

Incorporation:

Delaware, USA

Birth:

Unknown

Current Status:

Operational


Private


Unknown

Sharia Compliant:

No


Yes

Gold standard (eg. LBMA quality or other) Gold in storage:

Unknown

Vault Location(s): No. of user accounts or DGC holders:

Unknown


Unknown


ETH


Unknown


Yes

Buy & Sell Fees:

No

Annual storage fee:

No

Transaction fees (between users): Comments

© The Hutch Report

Every Coin is 100% Gold Backed. GLD International Inc launched 10 million CryptoGLD Coins. A fully gold backed cryptocurrency under Ethereum Blockchain. Partnership with Citigold Corporation Limited, a publicly listed Australian mine. This company is run by Johannes Breytenbach, who has also attempted a luanch of Ozcoingold.


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LAToken Key Individuals:

CEO - Valentin Preobrazhenskiy,

Website:

https://latoken.com

Incorporation:

Caymen Islands

Birth:

2017

Current Status:

Operational


30 million LAT offered at 0.0010 Ether, LAT on the leading crypto exchanges.


Yes

Sharia Compliant:

No


Unknown


Unknown

Gold in storage:

Unknown

Vault Location(s):

Unknown


Not disclosed


No


Yes


Unknown


Unknown

Buy & Sell Fees:

0.01%

Annual storage fee:

Unknown


© The Hutch Report

LAToken facilitates the broad use of cryptocurrencies in the real economy and allows cryptoholders to diversify their portfolio by getting access to tokens linked to the price of real assets including commodities, real estate or equities. Not open to US investors.


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Orebits Corporation LLC. Key Individuals:

Scott Mehlman, CEO, Michael Zimits COO, Chris Youb CTO

Website:

www.orebits.io

Incorporation:

Delaware LLC (offices in NYC)

Birth:

2017

Current Status:

Launched


Private, only on the Orebits platform


Unknown

Sharia Compliant:

Unknown


Undisclosed


Undisclosed

Gold in storage:

One Orebit represents one ounce of gold per the LBMA morning price.

Vault Location(s):

Uknown


Uknown


Uknown


Uknown


Uknown


Uknown

Buy & Sell Fees:

Uknown

Annual storage fee:

Unknown


© The Hutch Report

Orebits relies on distributed ledger technology provided by Symbiont.io. It appears as if the gold assets are created via special purpose vehicle, Orbits Pool LLC. If we understand the platform, Orbits Pool LLC purchases futures contracts of gold that is not yet mined, these contracts are then digitized into smart certificates and sold as Orebits.


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Own Bullion Ltd Key Individuals:

Rupert Hadlow, Iain Watt

Website:

https://www.ownbullion.com, https://www.bullioncapital.com

Incorporation:

Bath, England, Wales, Australia

Birth:

2015

Current Status:

N/A


Private


No

Sharia Compliant:

Unknown


Yes


999.9 fineness (eg. 100% pure)

Gold in storage:

Undisclosed

Vault Location(s):

Asia, Europe, Australia


Unknown


No


Yes


No


Yes

Buy & Sell Fees:

No

Annual storage fee:

1%

Transaction fees (between users): 1% Comments

© The Hutch Report

Their website is currently offline (as of this writing). This looks like a local UK entity of an Australian run platform, Bullion Capital, and with intentions to create a marketplace for buying/selling gold (ownbullion.com) and then to create a crypto currency backed by gold (owntokens.com). Owntokens is not live yet.


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OzCoin Gold, Inc Key Individuals:

Ira Carlin - President, Johannes Breytenbach - CTO

Website:

https://ozgld.com

Incorporation:

Dallas, Texas

Birth:

2016

Current Status:

N/A


Private


No

Sharia Compliant:

No


Yes, upon redemption date (March 1, 2022)


24 karat

Gold in storage:

10M coins max for 100,000 ounces of gold (about 28 metric tons)

Vault Location(s):

Australia (in partnership with Perth Mint)


Unknown


No


Ethereum (ETH) is available now. It is planned to be listed on crypto currency exchanges in the future.


Yes


Planned

Purchase rate:

Unclear

Annual storage fee:

No

Transaction fees (between users): Unclear Comments

© The Hutch Report

This looks like a second attempt at the launch of a gold backed currency by Ozcoin Inc. Ozcoin ran or may still be running an exchange and were victims of a hack in 2013, however, it seems most of the stolen funds were recovered. (https:// bitcoinmagazine.com/articles/ozcoin-hacked-stolen-fundsseized-and-returned-by-strongcoin-1366822516/). OzGOLD is not FIXED to the price of gold but states that is gold backed. This seems to be contradictory.


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Xaurum Key Individuals:

Only known as the Xaurum Team

Website:

http://www.xaurum.org

Incorporation:

Slovenia

Birth:

February 2015

Current Status:

Active


XAUR


Unknown

Sharia Compliant:

No


Xaurum ratio represents the quantity of physical gold represented by 1 XAU.


The price of 1 g of 999.9 purity in USD, with Auresco rebate included.

Gold in storage:

Unknown

Vault Location(s):

Gold reserves are secured in a bank vault. (no other information)


Unknown


Unknown


Unknown


Unknown


Unknown

Purchase rate:

Unknown

Annual storage fee:

Unknown

Transaction fees (between users): Minimum transaction fee: 0.5 XAUR Comments

© The Hutch Report

Xaurum has the first digital commonwealth, represented by an open non-profit, Auresco Institute. The difference between Xaurum base value in gold and its market price is used to create mining profitability for all miners.


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YoGold Key Individuals:

Same founders as YoCoin (Unknown who they are)

Website:

http://www.yogold.org, https://yo.ventures,

Incorporation:

Address in Dubai (but previously in Thailand) Not known

Birth:

2016

Current Status:

The websites are active but there is no current trading in Yocoin. It may be defunt.


Yocoin , Apparently traded on two exchanges, C-CEX and Yo-Ex


Unknown

Sharia Compliant:

Unknown


Unknown


Unknown

Gold in storage:

Free gold storage in vaults (unknown which vaults)

Vault Location(s):

Unknown (broken link on website)


Unknown


Unknown


Apparently built on Ethereum smart contracts.


Unknown


Unknown

Purchase rate:

Unknown

Annual storage fee:

Unknown


© The Hutch Report

They state that every purchaser of YoGOLD will receive a certificate of the registered purchase in Gold Leaf and will be physically mailed the certificate for purchases over $100. Own a gold backed cryptocurrency, Buy Your YoGOLD Tokens Now for ONLY $1 Each! (This is a good example of a clear scam and poorly run one at that).


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ZenGold Key Individuals:

Jen Lee, Eric Gu

Website:

http://zengold.org

Incorporation:

China

Birth:

May 2017

Current Status:

Operational


ZGC


Unknown

Sharia Compliant:

No


Yes


Unknown

Gold in storage:

Unknown, 1 ZNG token represents the ownership of 1 gram of the physical gold.

Vault Location(s):

Shanghai Gold Exchange


Unknown


Unknown


BTC, ETP, ETH and ETC


N/A


N/A

Buy & Sell Fees:

No

Annual storage fee:

Unknown

Transaction fees (between users): 0.1% of the total value of each transaction Comments

© The Hutch Report

ZenGold is a smart asset system backed by physical gold based on the Metaverse blockchain being developed by Chinese firm Viewfin. Metaverse preserves the underlying platform in order to enhance security, allowing programs to run on the next layer up instead of directly on the Blockchain program.


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GOLD BACKED CRYPTOCURRENCIES PENDING COMMERCIAL LAUNCH

© The Hutch Report


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AUcoins Key Individuals:

Rechayahu Ben Harvey, Ambassador

Website:

http://ico-pgranville.online

Incorporation:

2017

Birth:

August 2017

Current Status:

Pending, ICO phase


N/A


Unknown

Sharia Compliant:

No


Unknown


Unknown

Gold in storage:

N/A

Vault Location(s):

Indigenous governments Embassy - a ballistic reinforced outside walls and doors, bomb shelter, self sustaining fortress built to stand 1000 years. Additional storage in Singapore (SGPMX)


Unknown


Unknown


AUcoin ICO currently accepts Bitcoin, Ethereum, Dash, Gnosis, Litecoin


Unknown


Unknown

Purchase rate:

Unknown

Annual storage fee:

Unknown


© The Hutch Report

"1st government sponsored decentralized peer-to-peer 100% gold-backed global reserve cryptocurrency, with built in "intrinsic value" of its weight in gold bullion for each AUcoin crypto token.” (There is not much available information and the website is very suspect).


27



Codetract (GCT) Key Individuals:

Mr. Lee Qing Xian

Website:

https://gold.codetract.io

Incorporation:

Singapore

Birth:

March 2017

Current Status:

In Beta


GCT


Unknown

Sharia Compliant:

No


Yes


.999 gold

Gold in storage:

Coin to gold ratio is 1 to 1 gram of gold, Gold are allocated and for multiples of 100 grams, they can be converted to 100 grams PAMP .9999 gold cast bar.

Vault Location(s):

Bullion Star vault in Singapore


Unknown


N/A


GCT tokens can be exchanged for Ether.


N/A

Credit card accepted: Buy & Sell Fees:

Unknown

Annual storage fee:

0.09% per year


Transactions are not reversable. Although GCT is a smart contract, it is not fully autonomous. CodeTract have access to GCT's admin controls.

  © The Hutch Report


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Digital Gold Ltd. (Trading as BullionCoin) Key Individuals:

Thomas Koenye, Abdulrahman Ghalayini

Website:

www.bullioncoin.com

Incorporation:

Isle of Man, registration number 014783V

Birth:

2017

Current Status:

Pending


BullionCoin Network (BCN) 1 gold BullionCoin (XAAU) is equal to 1 gram of gold (9999)


Yes

Sharia Compliant: Ability to redeem physical gold and conditions:

Yes


Assayed and refined to qualified form, purity and weight.

Gold in storage:

Unknown

Vault Location(s):

Digital Gold Limited’s own insured, high security vaults in the duty free zone in Geneva, Switzerland and participating vaulting facilities.


Unknown


Prepaid BullionCoin denominated Card Payment


Unknown


Unknown


Unknown

Purchase rate:

Unknown

Annual storage fee:

0.025% each month


© The Hutch Report

BullionCoins are not mined into existence, they are freely purchased into existence by anyone,anywhere using a smartphone, tablet or personal computer. All new purchases can take place either on BullionCoin Exchange (bullioncoinexchange.com) or through the iOS, Android webclient application (www.bullioncoin.io).


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GoldMint PTE LTD Key Individuals:

Dmitry Pluschevsky, Konstantin Romanov, Anton Akentiev

Website:

https://www.goldmint.io

Incorporation:

Singapore

Birth:

2017

Current Status:

Pending, ICO phase


Gold Token, MNTP token ICO price is $7


Yes

Sharia Compliant:

No


It depends on country and weight of gold. There will be a calculator later.


LBMA

Gold in storage:

Custody Bot

Vault Location(s):

Custody Bots to be installed in small banks and pawnshops


N/A


N/A


Current: 1 ETH = 48.14 MNTP, 1 BTC = 657.12 MNTP

Wire transfers accepted: Credit card accepted:

Yes

Purchase rate:

Gold 5% purchase fee and 3% sale fee

Annual storage fee: Transaction fees (between users): Comments

© The Hutch Report

The GoldMint project will serve all gold investors looking either to hedge their portfolio with GOLD or earn a return from facilitating the network with MNT. GoldMint founders predict that, in five to seven years, gold will be stored in, traded, and invested using machines like Custody Bot, and that the GOLD cryptoasset will become the trading unit for these operations.


30



 

HelloGold Key Individuals:

Robin Lee, Wykeen Seet, David Appleton

Website:

https://www.hellogold.org

Incorporation:

Malaysia, HelloGold Foundation

Birth:

2017

Current Status:

ICO October 2017


Private Fork of Ethereum Network, GBT, 1 token backed by 1 gram of gold


Yes

Sharia Compliant:

Yes


Unknown


99.99% investment grade

Gold in storage:

3 bars (51 ounces of gold)

Vault Location(s):

Unknown


Unknown


Unknown


Unknown


Unknown


Unknown

Buy & Sell Fees:

Not disclosed

Annual storage fee:

Not disclosed


© The Hutch Report

HelloGold is developing an application using blockchain for the mass market, where end users benefit from the application of the technology without needing in-depth knowledge of the underlying technology. In the long term, customers will be provided the option of converting their vaulted gold to a digital gold token (GBT). Token resale is now live.


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One Gram (OGC) Key Individuals:

Ibrahim Mohammed, Mohamed El Abbouri

Website:

http://OneGram.org

Incorporation:

Dubai

Birth:

2017

Current Status:

Pending


Private


No

Sharia Compliant:

Yes


Not specified


Not specified

Gold in storage:

Max12.4M OGC tokens planned. One token equivalent to one gram of gold, so 12.4 metric tonnes

Vault Location(s):

Dubai


Unknown


Not yet, a GoldGuard Mastercard Debit Card is planned.


It is planned to be traded as a cryptocurrency (OGC)


Unknown - a payment gateway, YalaPay is being implemented.


Unknown - a payment gateway, YalaPay is being implemented.

Buy & Sell Fees:

10% surcharge (includes crypto OGC tokens)

Annual storage fee:

No


Coin is not yet launched (a series of ICO are in progress)

 

© The Hutch Report


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Orocrypt Inc. Key Individuals:

Alejandro de Gaustad CEO, Darlene Hart, CFO

Website:

https://orocrypt.com

Incorporation:

Republic of Panama

Birth:

Planned for final quarter of 2017

Current Status:

Pending


After the ICO, OROC tokens will be traded on crypto exchanges or P2P.


No but will comply with Panamanian regulations for precious metal merchants.

Sharia Compliant:

Not yet, their white-paper indicates they intent to apply to be Sharia certified.


Yes, all delivery costs are the responsibility of the customer.


Details will be published once Orocrypt has finalised the necessary agreements in place.

Gold in storage:

1,112,000 tokens in total. 45% of Class A tokens are being offered for sale. 24% are held by the board as Class B shares. 18% are reserved for a future employee incentives pool. 13% are reserved for finance, bonuses, compensation for services and rewards. The gold tokens (ORO.G) will represent 30 grams of gold.

Vault Location(s):

Liechtenstein, Zurich, Hong, Hong Kong, Cayman Islands.


Unknown


No


Planned to accept euros, bitcoin or ether. ORO.G will be compatible with any Ehtereum wallet.


Yes


No

Buy & Sell Fees:

ORO.G tokens will be sold at spot rate with no mark-up.

Annual storage fee:

0.5%


© The Hutch Report

OROC tokens (eg. the ICO) are not open to US or Panamanian citizens. www.thehutchreport.com

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SHARI’AH COMPLIANT Among a number of the gold back cryptocurrencies we have researched you will see that a few of them are Shari'ah Compliant, therefore a brief overview of Shari'ah compliancy is required. Central to Islamic finance is the fact that money itself has no intrinsic value; it is simply a medium of exchange. Each unit is 100% equal in value to another unit of the same denomination and you are not allowed to make a profit by exchanging cash with another person. A Muslim is not allowed to benefit from lending money or receiving money from someone. This means that earning interest (riba - literally an increase or growth) is not allowed, such practice is proscribed under Islamic law (haram, which means prohibited) as it is considered usurious and exploitative, whether you are an individual or a bank. To comply with these rules, interest is not paid on Islamic savings or current accounts, or charged on Islamic mortgages. Although they have been mandated since the beginnings of Islam in the seventh century, Islamic banking and finance have been formalized gradually since the late 1960s, coincident with and in response to tremendous oil wealth which, fueled renewed interest in and demand for Shari’ah compliant products and practice. Central to Islamic banking and finance is an understanding of the importance of risk sharing as part of raising capital and the avoidance of riba (usury) and gharar (risk or uncertainty). The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has worked with the World Gold Council to develop a Shari'ah Standard on Gold. The AAOIF will provide certification whether or not an organisation or platform is Shari'ah compliant. The Shari'ah Standard on Gold may be downloaded from shariahgold.com

© The Hutch Report


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GOLD BACKED DIGITAL CURRENCIES DEFUNCT

© The Hutch Report


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eCache Key Individuals:

They have remained anonymous ([email protected])

Website:

Website no longer functional, service was anonymous

Incorporation:

Anonymous

Birth:

2007

Current Status:

Ceased trading in 2014


Private


No

Sharia Compliant:

No

Ability to redeem physical gold and conditions: Gold standard (eg. LBMA quality or other) Gold in storage:

Undisclosed

Vault Location(s):

n/a


Undisclosed


No


Users were able to send anonymous eCache certificates to each other over the Tor network.


Unknown


Unknown

Buy & Sell Fees:

Unknown

Annual storage fee:

Unknown


© The Hutch Report

Very little information about eCache appears publicly online.


36



 

eGold Key Individuals:

Doug Jackson, Barrey Downey

Website:

http://blog.e-gold.com

Incorporation:

Nevis, St. Kitts

Birth:

1996

Current Status:

Services suspended in 2009


Private


No

Sharia Compliant:

No


At their peak they had 3.8 metric tons of gold ($85M)

Vault Location(s):

Initially in safety deposit boxes, then moved to London and Dubai.


Had achieved up to 1.6 million accounts


No


No


No


No, but it was possible to extract money to debit and credit cards

Buy & Sell Fees:

Unknown

Annual storage fee:

1%

Transaction fees (between users): Depended upon amount sent Comments

© The Hutch Report

E-Gold folded due to systemic problems performing KYC and prohibiting fraudulent activities on the platform. The founders were prosecuted for allegedly violating money transmitter laws and ended up with a plea agreement and given lenient sentences. Doug Jackson platform was used as the basis for Coeptis which launched in 2013 to provide a gold backed digital currency standard and to improve the shortcomings of EGold. www.thehutchreport.com

37



 

iGolder Key Individuals:

James Turk

Website:

https://www.igolder.com

Incorporation:

Republic of Belize

Birth:

2005

Current Status:



Private


No

Sharia Compliant:

Unknown


Undisclosed

Vault Location(s):

Undisclosed


Undisclosed


n/a


They are offering to settle in bitcoin to any remaining account holders.


Yes


No

Buy & Sell Fees:

n/a

Annual storage fee:

n/a

Transaction fees (between users): n/a Comments

© The Hutch Report

Since August 1, 2013 iGolder is no longer accepting new accounts. James Turk went on to found GoldMoney.com. This fact is not clearly stated on the website, although the "join now" tab on the site leads to an error page.


38



Liberty Reserve Key Individuals:

Arthur Budovsky

Website:

http://www.libertyreserve.com

Incorporation:

Costa Rica

Birth:

2004

Current Status:



Private


No

Sharia Compliant:

No


Undisclosed

Vault Location(s):

n/a


1 million registered users at the time of its closing, 200K of whom were from the US.


No


Users could send Liberty Reserve Dollars or Liberty Reserve Euros to each other using only name, e-mail and birth date.


Unknown


Unknown

Buy & Sell Fees:

1%

Annual storage fee:

n/a


© The Hutch Report

Founder Arthur Budovsky sentenced in 2016 to 20 years in prison for consipring to commit money laundering.


39



 

Pecunix Key Individuals:

Simon "Sidd" Davis

Website:

www.pecunix.com

Incorporation:

Republic of Panama

Birth:

2002

Current Status:



No


No

Sharia Compliant:

No


2,777 oz gold

Vault Location(s):

Unknown


Undisclosed


n/a


n/a


n/a


n/a

Buy & Sell Fees:

?

Annual storage fee:

0%

Transaction fees (between users): 0.15 - 0.50% (with min. 0.0001 - max. 3.0 gold grams) Comments

© The Hutch Report

Account holders lost their funds when the company stopped operating.


40



 

GOLD EXCHANGES BASED ON BLOCKCHAIN

© The Hutch Report


41



Bankchain Precious Metals

Overview Bankchain Precious Metals brings instant settlement and simultaneous delivery versus payment to the London bullion market. It is built on Paxos’ flagship blockchain settlement platform. They previously had a partnership with Euroclear. The first pilot program took place in December 2016 with over 600 OTC test bullion trades settled on the Euroclear Bankchain platform over the course of two-weeks. The pilot was coordinated through the Euroclear Bankchain Market Advisory Group that includes participants working with Euroclear and Paxos in the roll-out of the new service. The partnership has since broken up. Paxos' management team is led by CEO and Co-Founder Charles Cascarilla and its board of directors includes former FDIC chair Sheila Bair, former Senator Bill Bradley, former chair of the Financial Accounting Standards Board Robert Herz, former chairman, president & CEO of Lotus Development Corporation Jim Manzi and former NYSE CEO Duncan Niederauer. Partners:

Paxos

Websites: https://www.paxos.com/bankchain

Goldmoney Inc. Overview Personal and Business users can now instantly purchase any amount of 100% reserved physical gold in the Mint’s Ottawa vault using Goldmoney’s proprietary, closed-loop blockchain technology, for a 0.50% fee and receive free storage for up to 1,000 grams through Goldmoney. The first of several developments to come from the collaboration, the addition of the Mint’s Ottawa vault to the Goldmoney Network provides users with a second Canadian storage option, after Toronto. Network users can also send gold title to anyone for free via text message or email, redeem their gold balance to a Goldmoney Mastercard Prepaid card or bank account in local currency, or make vault-tovault gold transfers between the Mint and seven Brink’s vault locations located around the world via Goldmoney’s web-based Dashboard and mobile app for iOS and Android. Partners: The Royal Canadian Mint Websites: https://www.goldmoney.com, http://www.mint.ca/store/template/home.jsp

© The Hutch Report


42



Tradewind

Overview TradeWind is a new and independent company modernizing the trading, ownership, and utility of gold. The TradeWind technology platform includes an electronic communication network (ECN) and distributed ledger (DL). The ECN, powered by IEX's exchange technology, will enable bullion dealers to trade bullion on an OTC inter-dealer basis. The DL will allow gold stored in an LBMA approved vault to become eligible for trading on the ECN, enable bullion trade settlement, and account management. TradeWind raised $9M in June 2016... the company confirmed that the funding came from IEX and Sprott. Investors: Sprott Inc. / IEX Group Websites: http://www.tradewindmarkets.com, http://www.sprott.com, https://iextrading.com

Royal Mint Gold (RMG)

Overview RMG is physical gold, digitally traded and underwritten to a blockchain ledger. It provides the investment performance of the London Gold Market with the price transparency, real-time price discovery and trade execution of an exchange-traded security. Counterparty risk is negated through direct ownership of physical gold where 1 RMG represents ownership and full title to 1g of physical gold bullion. RMG is held in the form of fully allocated, LBMA Good Delivery Bars within The Royal Mint vault, a highly secure, on-site bullion storage facility. They allow for the physical redemption of gold and buybacks in fiat currency. In addition to developing the blockchain code, BitGo is also developing the first wallet platform for RMG. As expected, all BitGo RMG accounts (wallets) will be multi-signature and will include advanced policy management, controls and functionality. Partners: The Royal Mint, The CME Group, Bitgo Websites: http://rmg.royalmint.com, http://www.cmegroup.com, https://www.bitgo.com

© The Hutch Report


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THE HUTCH REPORT VIEW The recent economic and financial crisis of 2007-2008, not to mention the savings and loan crisis years before, woke people up to the fact that their banking and savings accounts may not be as secure as they once thought. In addition, people have begun to realize that the purchasing power of their fiat currency savings have been eroding over time as working families are finding it harder and harder to get through the month. Massive central bank intervention into our free markets has not only caused more worry about potential runaway inflation, which would cause fiat currencies to be devalued and further losses of purchasing power, but their actions have caused an ever increasing wealth gap between the rich and the poor. It is clear that fiat money has serious economic and ethical drawbacks. This has prompted a search for a better alternative. The marriage of cryptocurrencies and gold enables alternative choices to holding more than fiat currency. Although we can’t imagine fiat currencies to be replaced overnight, the promises of gold backed cryptos do look compelling moving into the future and they are certainly important to follow. In spite of the strengths of a gold backed cryptocurrency there are still many unknowns. In their short history we already have some that have come and gone. Our research into many of the up and coming gold backed cryptocurrencies has shown that the information available is not completely clear or transparent and sometimes sketchy at best. Previous examples of blatant fraud is also a reason to be defensive but not dismissive of the newcomers. We also have a variety from different parts of the globe. There is not enough of a track record with which to have the confidence to make a significant investment although it is worthwhile to look at them from a short term trading aspect in order to see how well they function and if they are able to deliver on their promises. The principle strengths of the gold exchanges based on the blockchain is that they are being developed by reputable organizations. We don’t lose site of the fact that these blockchains being used are centralized which means they don’t incorporate many of the advantages of the decentralized model for which cryptocurrencies such as Bitcoin have become known. They are not yet fully operational therefore it is difficult to judge their efficiencies. Although these new gold backed cryptocurrency and blockchain gold exchanges provide a compelling alternative to the purchase of gold we would not be jumping in just yet, however the future looks very exciting and by understanding the current developments in the sector through this report you are provided with a greater advantage as they mature. The ventures with the strongest management teams look to be the most compelling. For this reason the exchanges; Bankchain Precious Metals, Goldmoney, The Royal Mint and Tradewind, look solid. Among the gold backed cryptocurrencies, we will be following the launch of BullionCoin. 

© The Hutch Report


44



LINKS AND RESOURCES Whitepapers Anthem Gold - Not available AUcoin - http://ico-pgranville.online/white-paper-aucoin BullionCoin - http://www2.bullioncoin.com/pages/whitepaper/ Codetract - https://launch.codetract.io/whitepaper.pdf CMO - Not Available Cryptogold - Not available (however, they are associated with OzcoinGold) Digix - https://digix.global/whitepaper.pdf Goldmint - https://www.goldmint.io/white-paper HelloGold - https://www.hellogold.org/downloads/HelloGoldTechnicalWhitepaper.pdf LAToken - https://cdn.latoken.com/common/files/whitepaper/latoken-whitepaper-en.pdf OneGram - https://onegram.org/whitepaper/ Orebits - Not Available Orocrypt - https://orocrypt.com/#documents Ownbullion - Not Available OzcoinGold - https://cryptogld.com/wp-content/uploads/2017/03/OZcoinGold-WhitePaper.pdf Xaurum - https://www.xaurum.org/TreatiseOnXaurum.pdf YoGold - http://yogold.org/yogold_whitepaper.pdf ZenGold - http://zengold.org/pdf/zengold_whitepaper.pdf

Additional Resources Bank of Canada - http://www.bankofcanada.ca/wp-content/uploads/2016/03/swp2016-14.pdf IMF - https://www.imf.org/external/pubs/ft/sdn/2016/sdn1603.pdf The Royal Mint - http://www.royalmint.com/~/media/PDF/RMG_Factsheet_2017.pdf Jewelry Consumption Figures https://minerals.usgs.gov/minerals/pubs/commodity/gold/myb1-2014-gold.pdf https://www.gold.org/research/gold-demand-trends/gold-demand-trends-q2-2017 http://www.usdebtclock.org/gold-demand-by-country.html 

© The Hutch Report


45



About The Hutch Report The Hutch Report was founded in 2015. Originally from North America, the founders have lived in Europe for the past 20 years and traveled some of the most amazing places that the world has to offer. In that time, learning some incredible things and living an incredible adventure. Along the way we have met a large number of fascinating people and worked with more than a few technology startups, one which was sold to PayPal and another that was sold to Macrovision. In that time we have compiled an extended network of contacts in the European and North American startup communities as well as the venture capital and private banking sectors. Through interviews, research and analysis, our goal is to identify what is beyond the horizon. Where the next great opportunities are and how WE and our READERS can profit from them. We are providing insights, ideas and tools for the new economy. Contact: [email protected] Disclaimer © 2017 The Hutch Report The content of The Hutch Report and it's web site www.thehutchreport.com, is provided for information purposes only. No claim is made as to the accuracy or authenticity of the content found in this report or on our website. The Hutch Report is not a Registered Investment Advisor, Broker/Dealer, Financial Analyst, Financial Bank, Securities Broker or Financial Planner. The Information in this report is provided for information purposes only. The Information is not intended to be and does not constitute financial advice or any other advice, is general in nature and not specific to you. You should seek the advice of a qualified and registered securities professional and undertake your own due diligence before making any investment. None of the information on this report is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any security, Company, or fund. The Hutch Report is not responsible for any investment decision made by you. You are responsible for your own investment research and investment decisions. There is a substantial amount of risk in gold backed or any other cryptocurrencies, and the possibility exists that you can lose all, most or a portion of your capital. The Hutch Report cannot and will not assess or guarantee the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The platforms and companies mentioned in this report may not be suitable for investors depending on their specific investment objectives and financial condition. Your use of any information from this report is at your own risk and without recourse against The Hutch Report, its owners, directors, officers, employees or content providers. The Hutch Report website and reports/newsletters do not accept any liability to any person or organisation for the information or advice (or the use of such information or advice) which is provided on its web site or reports/ newsletters or incorporated into it by reference. The information on the reports/newsletters and the website is provided on the basis that all persons accessing the site undertake responsibility for assessing the relevance and accuracy of its content.

© The Hutch Report


46