Sudan Gold Coin is the latest promising cryptocurrency project using blockchain technology with gold mining to attract investors seeking a cryptocurrency backed by a tangible asset. The team leading the project, hailing from Russia, has received permission from the Sudanese government to mine gold in northern Sudan, where important gold reserved are located.
The project estimates that its mine has 14,000 kilograms of gold reserves, based on geological surveys done between 2015 and 2017. This estimate is based on drilling and satellite observations of the area. In exchange for having access to these reserves, the government of Sudan has been promised a share of the profits, amounting to 17 percent.
By using blockchain technology, Sudan Gold Coin aims to bring transparency to its mining process, allowing investors to determine the value of each token based on gold output. 50 percent of the net profits of the mining operation will be used to buy back SGC (Sudan Gold Coin) tokens, creating strong demand for them and causing their price to rise for investors. By purchasing these tokens from the profits of the mine, the SGC token’s value will be linked to gold production, rising and falling depending on the productivity of the mine. All of the gold produced from the mine, and all expenses associated with the mine, will be recorded onto the blockchain for investors to view.
Sudan Gold Coin will also create a decentralized exchange so that gold can be purchased from any gold mine or dealer. In this exchange, the SGC token will be the primary currency for buying and selling gold. The gold mining business along with the decentralized exchange will support the value of the SGC token.
For investors seeking an opportunity to capitalize on the world’s hunger for gold and cryptocurrencies, the SGC token will provide key benefits. Like gold, cryptocurrencies are perceived to be a hedge against uncertainty in traditional markets. With this market turbulence, investors are seeking ways to participate in the blockchain revolution, of which cryptocurrencies are integral, which has enornous potential for growth. Both gold and cryptocurrencies are alternative investments for investors, allowing them to diversify their assets to minimize risk.
For investors, gold is seen as a stable and conservative investment, given its inverse relationship to inflation throughout history. While major paper currencies lose value year after year due to growth of the money supply, the supply of gold grows at a modest rate of one to two percent annually. With the global money supply growing exponentially while the supply of gold grows modestly, the value of gold tends to increase in the long run and maintaining its purchasing power for the same goods and services.
The SGC token runs on top of the Ethereum blockchain and is ERC20 compatible. A maximum of 20,000,000 SGC tokens will be minted, and a total of 1,000,000 SGC tokens will be held by the founders of the project to maintain and develop the platform. The starting price of SGC is estimated to be .05 grams of gold of 99.9 percent purity for each SGC token, equivalent to roughly $2. For investors who purchase during the ICO (initial coin offering), the cost will be .75 to $1 for each SGC token.
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