IPMB Gold Backed Crypto Coin Launches on October 30th
by Oskar Trotman
Gold-backed cryptocurrencies are nothing new, and on October 30th, the launch of the International Precious Metals Bullion (IPMB) will enrich the blockchain ecosystem with a new token. The project’s goal is to create a safe pathway for investors to engage with the dynamic realms of blockchain innovation. The official launch will occur on Changelly.com, where anybody can purchase or sell an IPMB. One gram of investment-grade gold backs the value of each IPMB coin.
The parent company IPM Ltd is Cyprus-based and comprises a team of metallurgists, chemists, miners, engineers, and traders. The company has also created a vertically integrated physical gold-backed non-fungible ‘GeM’ (Globally exchanged Metal) Tokens, representing 1 gram of vaulted gold.
There are different sized GeM tokens, each representing varying qualities and quantities of gold. Users can stake, trade the GeM, or convert it into gold. IPMB tokens can also be used to purchase GeM non-fungible tokens at discounted rates.
IPM Ltd covers the expense of storage and insurance of owning tangible gold. Part of the company’s strategy is to make the IPMB ecosystem attractive to retail and institutional investors.
The supply of minted IPMB coins will be restricted to 200,000,000 tokens.
Transparency and Ethical Sourcing
Cryptocurrencies have been plagued by volatility and price fluctuations. Gold-backed tokens offer stability and a hedge against inflation, considering the digital coins’ value is pegged to the price of gold.
The gold used to back this blockchain system is held in vaults managed independently by Brinks Global Services and Sharps Pixley. There are plans for the network of vaults to expand across the globe. IPMB’s accountability is evident from third-party auditing from entities such as Grant Thornton Blockchain (Cyprus) Limited.
The IPMB operational philosophy is rooted in ethical sourcing and production. Every gram of gold used in this system can be traced to its source. The project emphasizes alignment with legal classifications and global standards. The company is transparent, offering annual inventory checks, collaborative engagements, and monthly audits.
Old Solution to a New Problem
Gold has been the preferred precious metal as a store of value since the earliest civilizations. It was minted in coins and used to facilitate trade across different kingdoms, where gold was accepted without a problem.
Modern monetary systems used the gold standard until the 70s of the last century. However, despite abandoning the gold standard as a means of backing the value of state issued money, most central banks still hold vast amounts of gold in their vaults as a reserve.
The emergence of blockchain technology ushered in a new trend, which was supposed to replace fiat money and bring more stability by combating inflation. However, the market has been volatile, with the price of cryptocurrencies experiencing drastic fluctuation. Projects such as the IMPB, which aims to digitize gold and represent it as gold-backed tokens, might offer a solution to the instability problem.