AgAu is a cryptocurrency token backed by 1gram of physical and allocated gold (Au) in the case of AgAu.GLD and 1gram of silver (Ag) by AgAu.SLV. AgAu aims to become the Gold Standard of cryptocurrencies and replace Fiat-cryptocurrencies bringing back the concept of honest money. We do not swap or lease the precious metal in order to pay for storage costs because we consider it as the same as fractional reserve system where the same ounce of metal would be swapped 1 or many times over.
AgAu tokens could be considered by the Swiss Financial Market Supervisory Authority FINMA as Payment tokens. According to the ICO guidelines issued by FINMA payment tokens are synonymous with cryptocurrencies and have no further functions or links to other development projects. Tokens may in some cases only develop the necessary functionality and become accepted as a means of payment over a period of time. We invite you to read the Legal section and disclaimer included in the “white paper”.
AgAu has an ambitious target to issue the equivalent of 500m Swiss Francs (CHF) of AgAu.GLD and AgAu.SLV to the “primary market” through an ICO, after AgAu tokens will be available to trade between crypto wallets through exchanges and decentralised applications. Like any other ERC-20 token, owners will be able to store them in Ethereum wallets.
Yes, AgAu aims to offer possible redemption anytime to AgAu token holders in different secured locations and through different mechanisms. AgAu is currently exploring different partnerships to offer more options to AgAu token holders. Where is AgAu token physical metal stored? AgAu will be storing the allocated physical metal in secure vaults in Switzerland and possibly other locations. We are studying partnerships to be able to redeem the metal in different other locations. What is the difference between allocated and unallocated gold? Check out our special section about Allocated vs Unallocated gold.
Yes, the physical metal is allocated as opposed to many of our competitors. This means that every batch of 1000 AgAu.GLD tokens (1000g) will be attributed to a specific audited and inspected gold (Au) bar with traceable serial number. In the same way, every batch of 1000 AgAu.SLV tokens (1000g) will be attributed to a specific audited and inspected 1kg silver (Ag) bar with traceable serial number.
Allocated precious metals simply means that the metal owner has the security that the
precious metal is attributed to a specific, audited and inspected bar with a traceable
serial number. This has some implications:
The precious metal cannot be swapped or leased. Swapping or leasing is a common practice in the precious metals market by witch the assets are borrowed and leased in order to provide temporary ownership of the assets (metal) to the borrower in exchange for a fee or interest rate. This allows for many physical gold holders to receive an extra income sometimes covering the storage and other costs.
The precious metal is property of the owner at all times. No one, at any time can claim property of the assets. By contrast, allocated precious metals implies the owner has to cover himself for the Storage and other costs. For AgAu, the problem is solved by taking the annual storage cost, say 0,5% annually and divided by 365 days so that the cost spreads over time on a daily basis.
TARCO plans to develop other banking-like services in order to give the optionality for those who are not in immediate need of cash and therefore enable them to put their AgAu tokens to work. Stay informed about our news and developments by joining our community.
The physical precious metal is inspected, audited by external, independent and accredited auditors every 2 to 6 months. We want to be transparent and therefore offer additional audits on request whenever the token holders consensus sees fit.
AgAu plans to establish a Token Holders Consensus in order to be able to take into account the AgAu community’s recommendations and opinions and build an idea meritocracy. Learn more in our AgAu Community & Rewards section.
AgAu uses blockchain technology. Blockchain is a distributed ledger of transactions, maintained by a network of computers. The ledger is continually updated and replicated across the network keeping the record of transactions copied and in sync between the users. Blockchain provides transparency and traceability of the movement of digital assets therefore giving impeded trust in the system by having a constant verification of integrity, the chain of information and its transactions. Transactions are secure using cryptography. Cryptographic signatures limit who can create transactions and access the data to only those who can prove their ownership through unique private keys (very secured password).