EMCO Network ABSC
Last updated
Last updated
Gold-backed cryptocurrencies, like the EMCO asset-backed stable coin, derive their value from a physical asset, in this case, gold and other precious metals. This means that the value of the cryptocurrency is tied to the value of the precious metals, which is generally considered a stable and reliable asset. This is in contrast to other cryptocurrencies, like Bitcoin, whose value is determined by supply and demand dynamics in the market, leading to significant price volatility. The stability offered by gold-backed cryptocurrencies can make them an attractive investment for those who want to participate in the cryptocurrency market but are concerned about the risk of price volatility.
As EMCO Network already operates within the precious metals supply industry, we have direct access to physical assets such as Gold, Silver, Platinum and Palladium. Access to these supply networks, including direct access to raw and unrefined materials from the source, allows us to scale reserves independently. There are crucial aspects of sourcing reliable Gold and other metals including storing the gold:
- Quality: The metals will meet the highest standards of purity and authenticity, and accepted by the global market.
- Quantity: The metals will match the amount of tokens issued, and there should be a transparent and verifiable mechanism to ensure that the ratio is maintained at all times.
- Custody: The metals will be stored in secure and insured vaults that are operated by reputable and independent third parties, such as banks, bullion dealers or vaulting companies.
- Audit: The metals will be regularly audited by independent and accredited third parties, such as accounting firms, auditing firms or certification agencies, to verify its existence and ownership.
- Redemption: The metals will be easily accessible and redeemable by token holders at any time, either in physical form or in fiat currency, depending on their preference.
