Democratizing Gold Investment for Everyone: A Recap of Our AMA with IPMB

In a market filled with uncertainty, gold has emerged as a beacon of stability. Despite recession fears, the unwinding of the yen carry trade, and rising interest payments on US debt, gold prices have hit an all-time high of $2,531.70 per ounce in August 2024.

Table of Contents

Gold’s Value Amid Volatility

According to George Agathangelou, chief operating officer and co-founder of IPMB, "gold tends to hold its value or even appreciate when other assets are struggling." This trend is expected to continue as investors flock to gold and safe-haven assets to protect their capital in the short term.

IPMB: A Hybrid Transparent Approach

IPMB offers a unique approach to investing in gold by making it accessible to everyone – individuals, institutions, and even states – at low cost. The company’s Gold Trace 360 initiative ensures that every ounce of gold is traceable from its origin, making IPMB the world’s first vertically integrated gold offering.

Transparent Sourcing and Distribution

IPMB sources non-refined gold (doré) directly from carefully selected mines in Ghana. To ensure a stable and secure supply of gold at the lowest possible cost, IPMB has entered into long-term contracts with these mines. The company prioritizes security by conducting thorough code reviews and regular security audits to identify and fix vulnerabilities in its tokenization processes.

Physical Security and Storage

IPMB works with accredited vaults and regulated companies to store its gold, ensuring the highest level of physical security. The company is exploring the integration of IoT technology into its supply chain processes to increase efficiency and transparency.

Decentralized Physical Infrastructure Network (DePIN)

IPMB’s focus on building a decentralized physical infrastructure network (DePIN) will enable the collection of data throughout its supply chain, which will then be analyzed by AI to generate predictive insights. This will help IPMB anticipate potential disruptions, optimize logistics, and maintain the integrity of the gold reserves backing its tokens.

Dual Token Mechanism

IPMB uses a dual token mechanism, representing two different types of gold: the basic gold-backed IPMB Token and GEM NFTs (Globally Exchanged Metals NFTs). The IPMB Token serves as a hybrid utility and payment tool designed to facilitate access to tokenized gold and promote crypto payments.

GEM NFTs

GEM NFTs are digital assets representing 24-karat investment-grade gold. They are tied to the price of gold and can be redeemed for physical gold. GEM NFTs offer waived management, insurance, and storage fees and will soon be fully traceable to the mine of origin.

Relationship Between IPMB Tokens and GEM NFTs

When users sign up for staking, their IPMB Tokens are converted into GEM NFTs based on specific scenarios. If the percentage increase in the IPMB price exceeds the discount offered, no discount is applied. However, if the IPMB price falls below the gold price, the conversion rate of the IPMB will be fixed at the gold price and the discount will be provided.

Staking Process

The staking process involves:

Smart Contract Oracle: Provides the three-month average spot price of gold and the three-month average price of IPMB Tokens from exchanges.
Discount Calculation: Based on specific scenarios, discounts are applied to users who sign up for staking.
GEM NFT Minting: When all staking requirements are met, a GEM NFT is minted, and the discount in IPMB Tokens is returned to the wallet.
IPMB Burning: The staked IPMBs are burned.

Future Plans

IPMB plans to expand its services by:

Developing an NFT marketplace
Enabling token buybacks
Partnering with premium brands
Securing banking licenses in various jurisdictions
Creating a crypto payment gateway platform called IPMB Vantage

Conclusion

Gold’s resurgence amid market uncertainty is a testament to its value as a safe-haven asset. IPMB’s hybrid transparent approach and focus on building a decentralized physical infrastructure network (DePIN) make it an attractive option for investors seeking stability and security in the gold market.

Learn more about IPMB and its innovative approach to investing in gold at [IPMB Website](insert link).

Disclaimer

Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain in this sponsored article, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.