"These blogposts are a reflection of my personal journey to understanding how developing this financial education can improve the lives of my family and those whom I work with".
Raymond E. Lee
Raymond E. Lee
Karatcoin lets you trade gold certificates on the Ethereum blockchain. Find out how it works today in our review.
Karatcoin tokenizes gold certificates on the Ethereum blockchain. You can use Karatcoin to store gold certificates in your ordinary Ethereum wallet.
The project was first announced in September 2017 with a post on Medium: https://medium.com/@karatcoin/karatcoin-tokenizes-gold-certificates-on-ethereum-4afa7426894b.
In the post, Karatcoin’s creators talk about how they want to do more than just digitize gold certificates: they want to create a new economy complete with decentralized financial services, decentralized apps, and more. All of these services will use Karatcoin as a token.
The platform is in development by Dreammy, an Italy-based music sharing service.
Let’s take a closer look at how Karatcoin works.
What Problems Does Karatcoin Seek to Solve?Karatcoin sees a number of problems in today’s gold markets. Here are some of the problems identified in the Karatcoin whitepaper:
Difficulty in Finding Gold:Karatcoin’s whitepaper explains that “gold mines cannot guarantee the necessary supply” of gold, especially for larger orders from the marketplace. They’re struggling to mine an adequate amount of gold to keep up with market demand.
Bond Value:The bond market is producing historically poor yields.
Difficult to Store Gold:Storing gold isn’t easy. Many investors fail to create adequate security systems to protect their gold.
How Does Karatcoin Work?Karatcoin aims to solve all of the problems listed above. Some of the core functions of the ecosystem include:
Direct Links to Gold Mines:Karatcoin’s platform will link directly to gold mines. Karatcoin claims to have already selected a number of mines based on their “ability, background, structural credibility and financial rating.” Karatcoin also claims there’s no intermediary involved in the process: theyinvest directly in gold mines.
5 to 6% Bond Yields:Karatcoin will issue “Karatcoin Gold Asset Certificates” with different maturity dates. These bonds will pay 5 to 6% yields depending on their duration. A one year bond, for example, pays a 5% yield per year, and a five year bond pays a 6% yield per year. Returns are paid every six months until maturation.
Smart Contracts:Transactions between Karatcoin and investors will be managed by smart contracts.
Karatcoin’s whitepaper mentions gold mining operations in South America and Africa. The whitepaper doesn’t mention any specific companies or mines in any of the listed countries. It’s just a list of the top gold producing countries in both regions.
Basically, Karatcoin will hold gold for you, and then you can maintain digitized control of that gold through products like gold cards and gold certificates.
Karatcoin ProductsKaratcoin will offer three main products, including certificates, cards, and tokens.
Gold Certificates:Karatcoin’s gold certificates consist of the Proof of Authority (PoA) information permanently uploaded into the decentralized database. These gold certificates have a specific duration and a fixed revenue. Each Gold Asset Certificate represents $1,000 USD of value.
Gold Cards:PoA Asset Gold Cards consist of the PoA information permanently uploaded into the decentralized database.
Karatcoin Tokens (KTC):KTC is a the digital currency for the Karatcoin platform. Each token will be equal to $3 worth of gold. You can use KTC to buy gold certificates, buy gold cards, or to trade for other cryptocurrencies.
The KaratCoin KTC Token SaleThe Karatcoin token sale will consist of a pre-sale and a main crowdsale. The pre-sale is a private sale only for approved investors. The sale will take place over 15 days in Q1 2018.
The crowdsale, meanwhile, will start 30 days after the conclusion of the pre-sale. It will last for 30 days.
A total supply of 15 million tokens will be sold during the pre-sale and crowdsale at a price of $3 apiece, although bonuses are available throughout the ICO.
Who’s Behind KaratCoin KTC?Karatcoin is being developed by a company called Dreammy. That company is a music hosting platform based in Italy. Dreammy is led by co-founders Simone Orso and Claudia Busato. Dreammy was founded in 2014, with the Karatcoin project launching in June 2017.
KaratCoin KTC ICO ConclusionKaratcoin is a cryptocurrency project seeking to bring gold certificates to the Ethereum blockchain. The platform will digitize your gold holdings, then allow you to hold them in your Karatcoin wallet on your mobile device. You can freely trade Karatcoin tokens (KTC) and gold certificates through the app.
It’s a little difficult to understand how Karatcoin works. The English translation of the website and whitepaper feature some unusual sentences and unclear terms.
The whitepaper, for example, mentions that the company will invest in real gold mines in South America and Africa. However, it’s unclear how these investments will work, or what kinds of returns investors can expect.
The platform is in development by a company called Dreammy. Dreammy’s core product is a music sharing platform – so it’s unclear why they’ve suddenly decided to start investing in gold mines worldwide. The company also operates a vegan recipe website. Overall, it’s unclear how a company that specializes in a music sharing platform plans to dominate the global gold mining industry.
In any case, you can learn more about Karatcoin by visiting online at Karatcoin.co. The ICO is scheduled to begin sometime in Q1 2018, although specific dates have not yet been announced.
“The postings on this site are my personal opinions and do not represent the positions, strategies and opinions of Karatbars International GmbH.”