Comtech Gold is the first token that fully abides by the Shariah law. Every token has a unique audit trail of its transactions backed by a uniquely numbered piece of gold.
Each CGO is equal to one gram of pure gold. One hundred percent redeemed, backed, and controlled. There is no convenient way to hold and exchange investment-grade gold.
Transporting and storing actual gold may be a hassle. It’s simple to trade gold futures, but doing so won’t provide you with physical gold. ComTech offers a solution to this issue with its gold-backed cryptocurrency. In this article, I will throw light on ComTech Gold.
ComTech Gold: An Introduction
Comtech Gold has expanded the gold market by issuing digital gold-backed 1:1 by physical gold. The project is built on the cutting-edge XinFin XDC Network blockchain. A group of prominent Shariah experts in the United Arab Emirates has recognized it as Shariah-compliant.
Gold’s storage and transfer problems are solved with digital gold, which can be converted to physical gold whenever needed. Gold investing is increasingly widespread now that precious metals may be purchased in smaller increments. By holding CGO tokens, investors are backed by a fractional share of actual gold.
While all holders will get their allotted quantity of gold, they may not receive the same bars they originally supplied. In a manner analogous to a bank, the arrangement provides the withdrawing customer with bills of a certain amount. However, these bills need not be identical to those that were initially placed.
The Real Gold Underpinnings
Each Comtech Gold token is pegged to one gram of gold at the current market price. Tokens may be traced back to specific gold bars by their serial numbers. These bars are 999.9 pure and weigh 1 kilogram each. Tokens backed by gold may be exchanged for 1 kg bars of the precious metal at any time.
An investor may submit a request to exchange their gold tokens for actual 1-kilogram gold bars after they have accumulated enough gold tokens to do so (1000 CGO tokens). As the Comtech Gold network grows, more and more stores will accept the tokens as payment, and customers will be able to purchase and sell tokens at their convenience.
Gold and silver bars will be kept in a segregated vault at Transguard in the United Arab Emirates (UAE), a globally recognized storage facility.
The issued Gold tokens will be held in a secure digital wallet managed by a trusted third party. Tokens maintained in user wallets will be fully accounted for and auditable thanks to this separate storage.
Users can access and move their Gold Token holdings via a Digital Wallet. Using encryption, wallets ensure that only the owner may access the stored value. The wallet’s custodian will keep records of all transactions for transparency and accountability.
To ensure that the reserve of physical gold precisely matches the outstanding supply of CGO tokens, a reputable auditing company performs regular audits to check the collection of CGO tokens in circulation.
It provides an audit report by the custodian detailing the amount of gold held in storage. Both of these audited reports may be seen on the Comtech gold website for complete openness.
Storage and Wallet
The gold bars backing the tokens are held by Transguard, a trusted depository worldwide. The user’s wallet account has a comprehensive audit trail. Wallets let users keep track of their token holdings and make exchanges. There is a layer of encryption between the owner and their wallet, ensuring that only they can access it.
Gold storage has always been a hassle, both at home and at the bank, owing to security and accessibility concerns. Comtech Gold, on the other hand, tokenizes gold so that it may be stored digitally, traded freely between users, and sold when necessary.
ComTech Gold is now Available for L-bank Trade
LBank, founded in 2015, is a leading cryptocurrency exchange. Users may trade in a secure environment while also taking advantage of the platform’s access to specialist financial derivatives and asset management services.
Over 7 million people from more than 210 countries are registered on the site. LBank is a cutting-edge expanding platform that protects its customers’ money and helps spread cryptocurrency worldwide. The digital currency exchange platform LBank Exchange added support for ComTech Gold (CGO) on August 15, 2022.
Trading in CGO/USDT has begun as of this writing. Each CGO is completely backed, redeemable, and regulated to be equivalent to one gram of gold. The XDC Network underpins ComTech Gold, making it the first hybrid blockchain platform. There are a total of 121,000 CGO tokens in circulation. It is now traded on the LBank Exchange.
In sum, the digital environment is practically independently evolving from the real world. Gold in digital form is a logical progression for the millennial generation, which already prefers to manage all of their assets online, from bank accounts to equities.
Comtech Gold’s asset-backed tokens not only solve the problems associated with traditional gold purchasing and trading but also provide additional benefits above competing solutions such as gold exchange-traded funds (ETFs).
Even investors who had to sell their gold investments because they weren’t profitable might benefit from fractionalization. More people will start using it as the technology improves and the ecosystem matures. A more dynamic shape will emerge if it begins to support features like lending and borrowing.