Important Notice on BullionCoin following its launch on 15 August:
BullionCoin and the Allocated Bullion Exchange have been collaborating closely with each other until it's launch in order to deliver a gold & silver backed digital currency.
However, a few minutes after BullionCoin's website went live, the ABX issued a statement announcing it was withdrawing from its collaboration with BullionCoin citing several reasons.
You can read ABX's full statement here. You can read BullionCoin's reply to ABX's statement here.
Whilst this unfolds, I am going to treat the information as objectively as I can, and so should you.
I strongly suspect it may well turn out to be a storm in a tea cup and not actually be anywhere near as drastic as it sounds, and BullionCoin could well become the digital currency we all want it to be.
Things like this often happen in business and it should not reflect poorly on either party as they both have a great product.
I have spoken to Thomas Koenye, the co-founder of BullionCoin, and it looks like ABX's statement may have been unfairly issued and there are some areas that need clarification which I have added as a pre-face to ABX's statement. Thomas' reply is here.
However, as my primary and overriding concern is the safety and security of client and potential client money and their vaulted precious metals, I will always take the options and decisions that will not expose you to any risks. I will update you as soon as I have completed my due diligence on this matter.
If you have any questions about this then please do contact me and I'll be happy to help. You can also contact BullionCoin and ABX for further clarification from them.
David Gibson, Managing Director
Responsibility of Ambassador BullionCoin Founding Investors
Those initial founding Ambassador participants will be responsible for buying the first physical gold and silver contracts from the wholesale Primary market, with the intention of then converting them into the 100% physical precious metal backed digital currency, BullionCoin.
Those coins will be the starting liquidity for this new revolutionary currency.
You will then have the option to recoup your capital investment by selling those newly created coins into BCX's Secondary retail market.
All of the coins you created and sold into that secondary market will then be used by companies & individuals all over the world to perform trades and transactions outside the banking system.
Physical Bullion Contracts
The primary market have the 4 following contracts available to buy wholesale:
- Gold; 10 kilos or 100 grams
- Silver; 500 kilos or 5 kilos
There is a minimum purchase quantity as an Ambassador which is $250,000.
Existing Physical Holdings
Many investors wanting to be part of the founding investment window, will already have a physical precious metal either in their personal possession or stored with another provider. You can transfer your existing holdings to be used as your founding investment to generate BullionCoins.
Contact us so that BullionCoin can start reviewing your holdings and provide feedback on the best route to be taken.
Any investor wishing to participate as a BullionCoin Ambassador for this revolutionary new digital currency should contact GoldVu.
Lifetime Fee Income
In order to attract investors to create that initial liquidity for the secondary market, as an Ambassador BullionCoin Founding Investor, you will be offered an extra financial incentive for your participation over and above what the standard primary market participants will be getting after the starting investment window closes.
In the Secondary market, each and every coin transaction/transfer, carries a fee which is a percentage of its value. That fee is charged to the buyer/initiator of the transaction.
The creators of BullionCoins are entitled to a portion of the fee attributed to the specific coins they created.
The revenue from the transaction fees will continue to be paid into your e-wallet for as long as those coins are in circulation (i.e. until redeemed). There is no time limit placed on how long your revenue will last for, so you and the generations following you could potentially be receiving that cash flow forever.
The actual revenue yields you get are wholly dependent upon its velocity. The velocity of currency is how much of its capitalisation (monetary base) is turned over (changes hands) each day.
The starting velocity of BullionCoin has been estimated to be around 20-30%. But how does that compare to the other cryptocurrencies?
The current daily velocities of some of the other well-known cryptocurrencies are:
- Bitcoin = 4%
- Litecoin = 30%
- Tether = 90-95%
They each have their different reasons for their velocities. However, Tether is the only one that is 100% backed by a monetary asset, which is US Dollars on a 1:1 basis.
Whilst I'm sure some would like to speculate on what BullionCoin's eventual velocity will be seeing it's similarly backed with a monetary asset like Tether is, speculation isn't an objective assessment – and objectivity is what you need to have when deciding whether or not you want to be a founding participant. So do your own due diligence.