Amid a market full of uncertainty, from recession fears to the unwinding of the yen carry trade and rising interest payments on US debt, gold is enjoying a resurgence. It hit an all-time high of $2,531.70 an ounce in August 2024 and hasn’t shown any signs of slowing down.
“Gold tends to hold its value or even appreciate when other assets are struggling,“ said George Agathangelou, chief operating officer and co-founder of IPMB, during the recent Cointelegraph AMA, “so we expect that investors will continue to flock to gold and other safe-haven assets to protect their capital, at least in the short term.“
Hybrid transparent approach
IPMB makes investing in gold accessible to everyone - individuals, institutions and even states - by offering it at low cost. “We offer free physical access to gold with no charges for storage, insurance or even physical delivery,“ Agathangelou said. Through the Gold Trace 360 initiative, they ensure that every ounce of gold is traceable from its origin, making IPMB the world’s first vertically integrated gold offering.
“We have co-ownership of gold mines in Ghana and focus on the entire process from sourcing and distribution to refining gold,“ Agathangelou explained. “IPMB’s operations focus on sourcing non-refined gold, known as doré, directly from these mines. To ensure a stable and secure supply of gold at the lowest possible cost, we have entered into long-term contracts with carefully selected gold mines,“ he added.
When it comes to security, IPMB prioritizes the integrity of its systems by conducting thorough code reviews and regular security audits. “These measures help us identify and fix any vulnerabilities in our tokenization processes, with the goal of significantly reducing the risk of a data breach at the end of the day,“ assures Agathangelou. In terms of physical security, IPMB only works with accredited vaults and regulated companies to store its gold.
The company is actively exploring the integration of IoT into its supply chain processes to increase efficiency and transparency. “We are using onchain smart contracts and want to ensure data integrity from the sensors we deploy,“ said Agathangelou, “Our focus is on building a decentralized physical infrastructure network, or DePIN. These IoT-enabled sensors will collect data throughout our supply chain, which will then be analyzed by AI to generate predictive insights. This will help us anticipate potential disruptions, help us optimize logistics, and maintain the integrity of the gold reserves backing our tokens.“
Hedge against market volatility
IPMB uses the dual token mechanism because it represents two different types of gold. As Agathangelou noted, “It provides a unique way to diversify portfolios, especially in times of volatile markets.
The basic gold-backed IPMB Token is equivalent to 18-karat gold doré bars. It also serves as a hybrid utility and payment tool designed to facilitate access to tokenized gold and promote crypto payments. In addition, the IPMB Token allows users to redeem their tokens for discounts of up to 11% on 24-karat gold via the GEM NFTs.
GEM NFTs, or Globally Exchanged Metals NFTs, are digital assets representing 24-karat investment-grade gold. They are tied to the price of gold and can be redeemed for physical gold. “Each GEM NFT equals a specific amount of gold and is backed by a physical gold product stored in the vault,“ Agathangelou explained. GEM NFTs also offer waived management, insurance and storage fees and will soon be fully traceable to the mine of origin.
IPMB Tokens can be exchanged for GEM NFTs and accepted as payment. The relationship between the two tokens ensures that the gold reserves in the ecosystem will always be greater than or equal to the combined total of IPMB Tokens in circulation and GEM NFTs minted. “According to our latest report, there are only about 4.6 million IPMB Tokens, and those 4.6 million tokens, representing 4.6 tons of gold, are backed by about 10.5 tons of gold, ensuring more than adequate collateral,“ the speaker noted.
Staking will soon be available to IPMB users through a tiered reward system, with longer stakes resulting in greater discounts on the GEM NFT, which acts as a digital promissory note for physical gold delivery after 12 months. The initial staking allocation will be approximately 200,000 IPMB Tokens per month, and staking will be on a first-come, first-served basis with pre-determined GEM NFT sizes.
“When you sign up for staking, our smart contract oracle will provide you with the three-month average spot price of gold as well as the three-month average price of IPMB Tokens from the exchanges,“ Agathangelou said. “All of these discounts and amounts will be provided at the time of staking based on the specific scenarios. If the percentage increase in the IPMB price exceeds the discount offered, no discount is applied. However, if the IPMB price falls below the gold price, the conversion rate of the IPMB will be fixed at the gold price and the discount will be provided“.
When all staking requirements are met for a user, the GEM NFT is minted, the discount in IPMB Tokens is returned to the wallet, and the staked IPMBs are burned. Agathangelou explained the rest of the process: “Gold is allocated to the refinery, and we work toward vaulting and physical delivery of the gold. The database is then updated with the LBMA serial number, and the NFT pointer shows the LBMA certificate. After vaulting, the database is updated again, and the user can see the location of the gold in the vault.“
The company plans to expand its services by developing an NFT marketplace, enabling token buybacks, partnering with premium brands, continuing to secure banking licenses in various jurisdictions, and creating a crypto payment gateway platform called IPMB Vantage. “We have even bigger plans for 2025,“ said Agathangelou, “as we aim to offer credit and debit card processing, implement layer 2 solutions, develop AI-powered tools, and launch gold-backed stablecoins.“
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