TMTG Digital Gold Platform to Enable Exchanging Crypto for Tangible Assets and Fiat Currency
Originally published on: CCN
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July 17, 2018
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The TMTG project, which stands for The Midas Touch Gold, uses blockchain technology to create an ecosystem for exchanging virtual currency for fiat currency and tangible goods. The project addresses one of the biggest challenges the cryptocurrency industry faces in providing a platform that brings real value to daily life for many.
Previously, gold transactions have been available through offline, person-to-person transactions that are cumbersome and entail risks such as gold quality. Purchase of gold through a digital token reduces these risks and provides safety and convenience.
Online/Offline Gold Exchange
The Digital Gold Exchange (DGE), an online/offline electronic gold exchange, will allow people to exchange cryptocurrency for tangible goods and fiat currency. Users will be able to store and trade assets securely on the platform and be able to trade with each other directly.
Those with large cryptocurrency holdings will be able to distribute their assets securely with potentially less tax impact.
The project focuses on gold since its value is recognized worldwide.
TMTG tokens, which are ERC 20 tokens, are not tied to gold but will serve as a way to purchase other cryptocurrencies on the DGE platform.
The MDG token represents real gold and will be purchased with TMTG tokens on the DGE platform. The MDG tokens’ value will be based on gold’s value at the time of purchase, as its value is pegged to 1 g of real gold.
Because precious metals like gold are reliable commodities, the DGE ecosystem has the opportunity to expand exponentially.
A User-Friendly Platform
The DGE platform will allow users to quickly check market prices and conduct coin-to-cash transactions and will facilitate conversions to USD, HKD, and KRW fiat currencies.
When selling TMTG coins on the DGE exchange, the coins are retired and sellers will receive MDG as newly-issued coins. The cash holding amount will determine the exchange amount of MDG and gold.
The DGE platform will eventually expand beyond gold to other precious metals like platinum, white gold, and diamonds.
Users will be required to have Know Your Customer certification to buy MDG using TMTG.
The Korea Gold Exchange, which officially supplies real gold to back digital gold, will supply the gold to the DGE platform. The platform will also be available to other gold suppliers who deposit a certain number of TMTG tokens in the DGE vault.
DGE uses the CC Exchange protocol, which is built on the Decentralized Exchange (DEX) platform for improved security and transparency, which it will use to build its fiat/crypto exchange.
Users will be able to use a modified mnemonic signature sign on their app to easily prove ownership of digital gold when exchanging digital gold for real gold at an offline gold exchange.
In addition, there is a Circuit Breaker system that automatically shuts down token exchanges when there is a large number of abnormal transactions occurring, protecting the stability of the market and its coin owners.
Conversion rates will be based on official gold exchange market prices and virtual currency exchanges.
In addition to the Korea Gold Exchange, DGE has entered into a contract with Happy Money Co. Ltd. for gift vouchers, S Carat for Vau diamonds.
The ICO has already begun and will continue through July 25.
There will be a total of 2 billion TMTG tokens sold during the ICO, and a total 10 billion issued altogether. Tokens will be purchased using ETH. The ICO will have a 40,000 ETH hard cap and a 10,000 soft cap.
The TMTG project will allow consumers to buy gold using digital currency and use digital currency for every day uses. As such, the project stands to expand the use of cryptocurrency and deliver its benefits to more users.