Ekon, the Eidoo stable coin backed by physical gold
Blockchain

Ekon, the Eidoo stable coin backed by physical gold

By Claudio Kaufmann - 19 Sep 2018

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It will be all real gold, the shiny type, nothing to do with paper finance.

Natale Ferrara, the founder of Eidoo, is excited to present his new creature. It’s Ekon, a token backed by physical gold, one gram to be precise.

A stable coin anchored to the precious metal. Ferrara continues, “all the gold bars will be kept in the vaults of the Eidoo headquarters in Lugano, Switzerland“.

How does Ekon work exactly?

The token uses the Ethereum blockchain and accurately replicates the price of gold. Each token will be equivalent to exactly one gram of physical gold kept at our headquarters. Then, every 90 days, an independent auditing firm, whose name I can’t announce for now but I can already say that it is one of the big four, will carry out an audit to verify the amount of bars in the vault. After each check, Eidoo will publish a statement. Everything will be absolutely transparent.

How does it work technically? How do you buy Ekon?

The first thing to do is to download the Eidoo app and follow the various verification procedures, starting with KYC. Immediately after you can buy Ekon by bank transfer or using cryptocurrencies, such as bitcoin or ethereum. Or, for those who own them, you can make buy Ekon using the Eidoo tokens.

If someone were to ask not one but 1000 grams of gold or even several kilograms, will you be able to manage them?

Definitely. We are obviously starting with a significant supply to meet a large demand. But, if there is not enough physical gold in the Eidoo vault to meet all the demand, pre-orders can be placed. At that point, within 24-48 hours, Eidoo will be perfectly able to guarantee the execution of the actual order.

Will it be a pre-order at a fixed price?

Of course. The gold price will be the one established when the pre-order is placed. Not at the final confirmation of the order.

What are the benefits of using Ekon for investors and traders?

The advantages can be enormous, in the short or even long term. Crypto traders know the term volatility very well, they like volatility, but it can also be dangerous. If you do not want to be exposed, especially during specific market phases, to the volatility of cryptocurrencies, you can download the Eidoo app, trade your bitcoin or ethereum for gold. And sleep peacefully.

At what price?

I would like to point out that there will be no deposit fees. Normally, if you deposit physical gold you have to pay custody fees, usually 0.5 per year. Furthermore, if you intend to move your gold for some reason, you have to go directly to where it is in custody. While with Eidoo it becomes much easier: you can sell your Ekons and turn them into crypto or fiat currency. You can do it through Eidoo or even with Nexex, our Malta-based exchange that has just become operational.

When will it be possible to buy Ekon tokens?

Our plan is to start from the end of September, but we are already accepting pre-orders.

Claudio Kaufmann
Claudio Kaufmann

A professional journalist, former editorial director of ITForum News: previously deputy director of the Italian newspapers "Finanza & Mercati" (finance and markets) and "Borsa & Finanza" (stock market and finance). He has been author and anchorman of television programs dedicated to politics, economics, and finance.

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