OneGram (OGC), a gold-backed, Sharia-complaint digital currency token has launched a crowdsale in a bid to raise $500 million by selling 12 million OGC tokens.
According to OneGram’s blog the crowdsale has started on May 27 (first day of Ramadan) and will last 120 days. At the time of writing of this article, the project has already raised $461,497.
The developers behind the project note that in essence the OGC is an investment in gold, which is considered a very secure asset with growing price. The coin, which is based on bitcoin’s blockchain, is anonymous and can be used for digital payments, much like the bitcoin and other cryptocurrencies. Furthermore, the OGC will remain a predetermined fixed number.
In order to participate in the crowdsale, the investors must register an account with the Dubai-based physical gold bullion trading company GoldGuard and purchase one gram of gold at live spot rates. The price includes fees, marketing costs, operational costs, etc. Additionally, when the cryptocurrency is launched on the blockchain, there will be a transaction fee. According to the company blog, the larger portion of this fee will be used for the purchase of more gold to back the token.
The physical gold itself, will be stored at the facilities of OneGram’s partner GoldGuard in vaults located within Dubai Airport’s high-security compound and is insured against theft or damage.
“We’re very pleased with early support for the OGC token crowdsale from the cryptocurrency and Islamic finance communities,” said Ibrahim Mohammed, CEO of OneGram. “More than 1,000 people have registered for GoldGuard accounts to participate, and the number is growing each day as we prepare to launch our crowdsale in alignment with Ramadan.”
According to the company, the OGC is fully fully Sharia compliant product designed to follow the three basic criteria for trading in Islamic finance: 1) There is no interest mechanism in the issuance of OneGram; 2) profit-loss sharing is part of the rewards scheme; and 3) there is minimal speculation as OneGram is an asset backed by physical gold.