What is HelloGold (HGT) Cryptocurrency Beginner’s Guide
HelloGold is a blockchain platform for the under-served and unbanked. Its digital currency is HGT tokens. A total of 1 billion HGT tokens were created. Three rounds of distribution are planned. Each round is scheduled to last 12 months. The crowdsale was held in October 2017. 17,149 ETH was raised in Round 1. Round 2 and round 3 are scheduled for 2018 and 2019.
10% of HelloGold annual management fees generated from Gold AUM are donated to the HelloGold Foundation. This fund is converted into GOLDX – a cryptocurrency. It is backed by 99.99% pure gold. GOLDX is distributed to HGT holders. GOLDX and HGT are separate tokens.
HGT Token Information
HGT is traded on several cryptocurrency exchanges including HitBTC, COSS, and Gatecoin. The HGT token is paired with ETH and BTC. HGT has a market capitalization of $2.56 million. Daily trading volume exceeds $4,800. The circulating supply is 263,034,654 HGT. The total supply is 1,000,000,000 HGT.
The funds from the token sale will be used to cover the following expenses:
Improve apps; Improve system security; Improve blockchain; Improve infrastructure; add product features; product testing; technical support; team/developer salaries
What’s Special about HelloGold?
One of the goals of HelloGold is digitizing gold-backed products. This is a way to simplify access to financial products. Gold-backed tokens are a unique alternative to other cryptocurrencies. These tokens are ERC-20 tokens based in Ethereum smart contracts. They are backed by 1 gram of gold. The gold is stored in a vault owned by HelloGold’s vaulting provider. GOLDX holders can redeem physical gold or withdraw fiat currency. There is a management fee of 2% annually.
Keeping the Ethereum Blockchain Private
The Ethereum blockchain is operated on a private network. There are several benefits to operating a blockchain on a private network. HelloGold avoids infrastructure fees for transactions. Transaction latency is also reduced by operating on a private network. Another advantage is that HelloGold won’t have to share the blockchain with independent developers. They won’t have to accommodate new contracts on a private network. The Ethereum blockchain is secure and transparent.
Mobile Gold Purchases
The HelloGold platform connects consumers to a gold provider. HelloGold offers a mobile application for consumers. There’s an Android version and an iOS version. Users can save, borrow, and send gold with the app. The minimum transaction amount is 0.25 USD. Users have access to short-term financing via collateralized gold. The transactions are completed nearly instantly. HelloGold solves three problems for consumers:
- Reduces consumer’s reliance on cash savings
- Offers alternatives to expensive credit companies
- Makes the money-remitting process faster and less expensive
There are three sources of revenue for HelloGold:
- 2% of gold sales or purchases
- 2% annualized management fee for storing and securing gold
- 2 to 3% activity-based administration fee
HelloGold also makes gold buying an affordable process. Since users buy very small amounts per purchase at international spot prices, it’s affordable. The gold is stored in Singapore.
Users can purchase gold as gifts. Gold certificates are available in 1/1000 gram increments. The extremely small denominations make a comparison with the Ringgit more realistic. HelloGold accounts can be topped-up with online banking systems. Alichat and Wechat may be compatible in the future. Users also have access to credit and short-term cash.