Coin Story: MetaliCoin
I am real, made from steel…
Backed by assets, ready to grow…
Take me to a mine and let me shine!
MetaliCoin (METL) is a cryptocurrency which, unlike other cryptocurrencies, is backed by real metals. Metals are a store of value and are freely tradable on open exchanges for fiat money. Metals are the foundation of our economy and modern lifestyle, and yet early stage mining projects, which are critical to the mining industry, have trouble getting access to capital due to their high risk. Investors, on the other hand, stay away from early-stage projects due to lack of trust and transparency from unlisted miners and risk of illiquidity. The MetaliCoin platform facilitates both funding of projects and frictionless trading of metals by listing the issued mining tokens on public crypto exchanges. Blockchain enables tokenization of physical assets and, therefore, frictionless distribution, sale and trading of representative digital assets. The trading system features a Crypto Metals Exchange which will allow all users to buy and sell METL and to trade units of the pre-purchased commodity via smart contracts to provide liquidity. Smart contracts also used to instill trust and transparency around the pricing of pre-purchased commodities and ongoing management of the pricing of the mine’s output.
The MetaliCoin project has a number of unique features, such as two types of coins: the platform coin, MetaliCoin, and project-coins. MetaliCoin is the base currency of the platform backed by metals and has a scarcity value in that only 300 million of coins will be mined Unlike other cryptocurrencies, it will be harder to manipulate on exchanges, as it is backed by real assets. The MetaliCoin itself is based on a basket of metals, so its value will be driven by the weighted value of the project-coins. When a project is approved on the MetaliCoin platform, a new project-coin is created for the project. The project-coin is backed by the primary commodity such as gold or zinc that will be produced by that project. Project-coins are freely tradable for METL. In addition, MetaliCoin is purchasing precious metals to provide liquidity to the coin. Because project-coins are representations of rights to a specific mining project, the price of the project-coin is determined by the global price, as well as the discount rate. This rate is determined by an algorithm based on a range of factors such as time to delivery, the risk associated with particular jurisdictions and the reputation of the miner.
The project is also unique in that it is built on Skyledger. Skyledger’s technology is based on Skycoin, a third-generation cryptocurrency that enables fast and free transactions, is scalable and environmentally friendly. MetaliCoin is the brainchild of its Australian founder, Jeremy Samuel, who has a strong background in digital start-ups and funding mining projects, and a host of computer science and business degrees. After a successful pre-ICO, Jeremy and his team are busy raising awareness of their project and the IMO (initial Metal Offer) planned for March 2018.
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