Digital Gold: ICO Backed by Real Assets

When ICO launch faces more challenges every day because of regulations and investor’s growing expectations, some projects turn to something real, that you can measure. We have learned that SEC requires the registration of securities, supported at least by the company’s value.

The number of blockchain projects backed by real estate, land, goods, vegetables, and fruits, kitties, grows day by day. Well, actually no one has dared to back his crypto by cats, but the popularity of the CryptoKitties project shows that such a business idea could work perfectly.

Obviously, precious metals and gems present a very convenient asset to back the value of the token.

ICObazaar list has more than 40 ICOs backed by gold, 8 ICOs backed by diamonds, 5 ICOs backed by silver and at least 1 ICO backed by emeralds and copper.

TOP-6 Gold and Diamonds Backed Icos

  • Gid Coin is the first project backed by polished diamonds and gold bullions. ⅔ of investments goes to polished diamonds and ⅓ — to gold kilobars. They plan to spend 30% on a final product and 70% to support production process, purchasing raw materials and providing the whole process.
  • EGOLDtrade is cryptocurrency, backed by gold by its own blockchain with PoS consensus algorithm and ATMs for buying/selling and storing physical gold. One GOLD costs the same as one ounce of gold on the Chicago Mercantile Exchange. EGold stores physical gold in US Federal Reserve System banks and in Singapore SGPMX custodians, and with the intention that its gold reserves should constantly support or exceed the number of GOLD assets it has in circulation.
  • EGYPT CryptoCoin is a gold-backed open-source payment network which allows peer-to-peer token transfer with centralized trade audits and dispute resolution. Through backing tokens by gold, EGYPT ICO gives 70 Cents back for every paid US Dollar in case if EGYPT (EGY) market value fall down.
  • Carats is backed by certified diamonds and offers a possibility to transact and store their digital value. The diamond pricing data comes from Diamond Pricing Algorithm (DPA) and the Get-Diamond Index (GDX), the official diamond index of the Israel Diamond Exchange. The contents of our Diamond Vault are regularly audited by Ernst & Young. The project hopes to boost the industry in the country, and a lot of diamond enthusiasts are already interested in the idea, thus giving the price of more room for growth.
  • Onegram is an ICO with every token backed by one gram of gold the way its floor price cannot be lower than the spot price of gold. It is also a Shari’ah certified asset for trading regulated by rules imposed on financial operations in the Islamic world. Another interesting thing about this project is that 70% of every transaction fee goes to backup reserve fund, which makes the system even more stable and resilient.
  • DRCG ICO is a trading platform that offers merchant apps and payment processing services, making DRCGcoin a medium of exchange all around the world. It’s the first blockchain option for gold mining project’s aim is to establish the high-technological and profitable gold-mining business in Congo.


Owning tokens backed by precious metals and gems certainly does not mean a gold ingot in the banking cell, but gives an indisputable guarantee that the price will not fall below a certain threshold. This approach firstly, ensures increased reliability to investors, and secondly, gives a connection to the real world to new investors, thus making it easier for them to understand what exactly they are investing in. Will such projects expand and conquer the market? Not necessary. However, they stand firmly on their feet as gold for a very long time will remain the measure of all things in our earthy and centralized world.

Digital Gold: ICO Backed by Real Assets was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.

Publication date: 
08/13/2018 - 19:31

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