A Blockchain Revolution in the Pawn Shop Market: Digital Gold & Robotized Storage

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The fact that blockchain technology will fundamentally change all aspects of society’s life in the next 10 years is more than obvious. Changes will occur to such conservative spheres as pawn shops – a market that needs transparency, refinancing and transformation of the current interest rate policy, which can go up to 140% a year.

Why does this happen? First of all, the majority of pawn shops operate with cash, that’s why their business is not transparent for investors. Secondly, companies, who lend out item-secured loans, spend a lot on storing and valuing precious metals. Considering, that pawn shops have problems with attracting financing, and also do not have the rights to sell pledged property before the end of the loan.

In 2017 GoldMint, a Russian-Singaporean blockchain company, came up with an idea to completely change the pawn shop market. The company plans on tokenizing gold, launching robotized gold storage that will be able to insert and valuate items, and it will also be connected the blockchain for storing data and information of the borrower and his items.

The fact, that the industry needs to be changed is well known to Dmitry Plyushevsky, founder of the blockchain company GoldMint. He owns the oldest pawnshop network, which dates back to 1923 and runs the largest jewelry scrap trader in Russia – therefore he understands the problems pawnshop businesses face all over the world and can drastically change the game on this market. GoldMint held an ICO in November, 2017 and has successfully raised $7 mln. The post-ICO development runs according to the roadmap; in April 2018 GOLD stable coin was launched on Bancor and several other exchanges.

After only a few months, GoldMint launched a 100% backed by gold crypto asset – GOLD. Gold that secures GOLD crypto assets, is bought at the Chicago Mercantile Exchange and Singaporean Precious Metal Exchange under delivery futures through the famous broker Wedbush. The gold itself is stored in banks of USA’s Federal Reserve System, Brinks storages and in Singapore. Nevertheless, GoldMint takes responsibility for buying back GOLD based on its current price at the Chicago Mercantile Exchange. This shows the real security of assets and increases trust towards the company.

However, what is the main role of gold-secured asset in reforming the pawn shop market?

As mentioned earlier, GoldMint plans on launching a robotized gold storage – Custody Bot. A video of the demo-version is available on the company’s website. The device will be able to intake, valuate and hand out gold items and also store all data and information on GoldMint’s own blockchain. Imagine, this kind of robot will be installed in a pawn shop. A client, who before gave his item to the pawn shop personnel to valuate it by peeling and oxidation, will now be able to store his or her treasury in 1 of 128 Custody Bots slots. This machine is equipped with a spectrometer and scales, it will automatically valuate gold items.

The process of issuing loans occurs in 2 ways. If the borrower agrees on receiving GOLD, equal to the price of the gold item, then he automatically gets transferred to the step where he inputs his cryptocurrency wallet details, where assets will be transferred to. In a situation where a borrower needs cash, Custody Bot generates a unique wallet, where GOLD will be assessed. Next, assets will be transferred to the pawnshop’s wallet, who in this current situation is functioning as an exchange point – and the borrower receives the equivalent in his desired currency. In this kind of scenario, the pledged property stays in the robots depository, and the pawn shop receives liquid assets – GOLD, which can be used for refinancing.

In GoldMint’s ecosystem, not only the company itself can be the creditor, but any other investor and GOLD holder. In this case, the company guarantees an annual 5% revenue from the invested sum.

GOLD’s functions are not only limited by crediting. The cryptocurrency market is highly volatile and the solution for hedging trading risks would be an appearance of a transparent stable coin. Nowadays, traders save their income in USDT (Tether) tokens, that really aren’t secured assets, with a non-transparent and wild emission. Tether doesn’t guarantee a buy-back option for its tokens – that’s why there reliability is an aspect for speculation. Besides that, GOLD can be an instrument for classical investing in gold, that has been an ideal resource for savings, due to its rarity and limited amount. However, investing in gold is not quite available for the broad masses, since banks offer huge margins for buying and selling, and possessing physical gold requires major expenses for storage.

This way, GoldMint, solves a whole cluster of problems. Liquidity is increased for gold owned by the population, loan rates are lowered due to attracting private investors and direct investments in gold. Individuals will be able to participate in peer-to-peer crediting and receive passive income from it, and pawn shops will be able to realize their GOLD assets (received from borrowers) whenever they wish.

Apart from the products mentioned above, GoldMints offers its utility token MNTP to crypto-holders and miners. MNTP is used for confirming transactions in GOLD (this kind of process is called “minting” and guarantees holders 75% income of GOLD operations). Investing in gold for MNTP holders also has its own benefits and specifities. The more MNTP tokens a holder has, the less the commission there will be to buy, sell and transfer Gold between accounts.

The beyond perspective project of GoldMint, soon can drastically change crediting worldwide. According to the company’s information, more than 1000 requests for Custody Bot have been received, and GoldMint’s assets are successfully being traded on the largest cryptocurrency exchanges, such as Bancor and Yobit.

In May 2018, GoldMint, on its web-site (goldmint.io), announced the launch of the Personal Account, where you can buy or sell GOLD and MNTP for fiat or cryptocurrency.

The content within this press release was provided by the organization referenced. usaCommerce is not endorsing and is not responsible for or liable for any content, products, accuracy, advertising, quality or other materials found on this page. Readers are advised to perform their own research before executing any actions related to this company.


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