The Next Generation of ‘Crypto’ Mining – Apraemio’s Deflationary Gold-backed Token

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As a seasoned crypto investor with over a decade of experience navigating the volatile and ever-changing landscape of digital assets, I find myself intrigued by Apraemio’s innovative approach to creating a gold-backed token with real-world utility. Having witnessed the meteoric rise (and occasional fall) of countless projects in this space, it’s refreshing to see one that aims to bring transparency, accountability, and tangible value to its investors.

Over many years marked by persistent high inflation, financial analysts worldwide have accurately forecasted that gold will maintain its significant function as a shield against inflation. In fact, over the past 18 months, its price has risen by more than 50%.

Despite the cult-like nature of the crypto industry, which fiercely asserts Bitcoin as the new gold, the traditional version of gold is still very present within blockchain circles as well. Projects such as Tether Gold and Pax Gold have long introduced gold-pegged coins to the crypto space. Collectively they now hold more than $1.6 billion in gold reserves.

Despite the fact that gold is universally acknowledged as a reliable store of value, it remains prone to significant fluctuations. To introduce a fresh generation of gold-backed digital tokens, Hungarian firm Apraemio is now venturing into this arena with an innovative strategy. The company’s gold-backed token, $APRA, is uniquely linked to the yields of a Mali-based gold mine that will provide its reserves for the following three decades. In this interview, Zoltán Varga, Apraemio’s CEO who has more than 15 years of experience in the gold industry, discusses the project’s objectives, operations, and future plans.

We spoke with Apraemio’s CEO, Dr. Zoltán Varga about the story behind this bold strategy and discussed the broader implications of its innovative strategy to asset-backed tokens.

Apraemio found its motivation for creating a novel gold-backed digital token by identifying an opportunity to bridge traditional finance with the digital world. To distinguish itself from other comparable initiatives in the market, Apraemio emphasizes its unique approach, which combines transparency, security, and accessibility, offering investors a reliable and convenient way to invest in gold using blockchain technology.

Varga: At Apraemio, we were inspired by gold’s timeless value and stability, especially during economic uncertainty. Our goal was to combine this stability with the global access that crypto brings, offering a unique asset that can hedge against market volatility and inflation. 

In contrast to numerous other tokens pegged to gold, Apraemio stands out due to its backing by continually growing physical gold reserves sourced from Mali, Africa. The unique aspect is that 50% of the mined gold is earmarked for token redemption, distinguishing us from typical gold-backed digital currencies. Essentially, Apraemio offers an opportunity for individuals to gain access to the profits generated by a real-life gold mine.

Our gold mining ecosystem partner is GGS, a company registered in the Republic of Mali with an exclusive 30-year gold mining license. Our focus on transparency, regulatory compliance, and security further sets us apart too, providing our token holders with peace of mind and trust in the assets they hold. In our ecosystem, it is also essential to emphasise that Apraemio is building a whole utility-based ecosystem where holders can exchange their tokens for real world asset purchases starting in 2025.

As an analyst, I am curious to delve deeper into the gold mine operations of GGS. Can you enlighten me on how this partnership between Apraemio and GGS will bring advantages or returns to $APRA token holders? I’m eager to understand the intricacies of this collaboration and its potential impact on APRA token value.

Varga: As I mentioned previously, Apraemio has a key ecosystem partner from the Arteusgroup – Green Gold System Europe SARL (“GGS”). This is not only where the gold mining expertise lies but also who owns the mining and explorational license. GGS’s gold mining operations in Mali are managed with the utmost efficiency and care, leveraging the team’s extensive experience in the gold industry since 2008. 

GGS’s exploration in Mali’s Komassala Sud region, has achieved significant milestones recently, with the discovery of 13 tons of proven gold reserves within a mere 1.2 sq km of the licensed 65 sq km area. This reliable result underlines the region’s vast untapped potential and sets a strong foundation for the 2024 drilling program. The program aims to scale these findings, refine reserve estimates, and further bolster the integration of gold reserves into Apraemio’s blockchain ecosystem, providing a stable and tangible value to its $APRA tokens.

Absolutely, token holders can enjoy the security and inherent worth of gold, but what sets us apart is the assurance that the gold operations are ethical, safe, and carefully managed. Our goal is to revolutionize the gold mining sector, and as such, we’ve ensured that investors have a rare chance to exchange their tokens for actual physical gold, an opportunity not often found in other projects.

How does the GGS team’s particular skill set contribute to efficiently running the gold mine? Furthermore, let me explain the main points of the current development strategy for Apraemio and its Web3 aspect.

Varga: GGS’s team comprises seasoned professionals with deep-rooted expertise in gold mining, financial management and international policy development. With over a decade of experience in gold mining, we ensure that operations are conducted efficiently and sustainably. 

By the close of 2026, following our planned exploration endeavors, about one-third (37.5%) of the total 20 square kilometers designated as easily mineable near-surface gold deposits will have been thoroughly investigated. This phased strategy enables us to meticulously assess priority regions and gradually expand our coverage over a broader area. The upcoming drilling operations will be aimed at zones where geological signs point toward optimal conditions for gold formation, thus refining the potential resource within the Komassala Project.

Our future plans involve several key actions:

How are oversight or management structures set up to guarantee that investors can obtain current and reliable data about the advancement of the mining project?

Varga: Transparency and accountability are at the core of our operations. We comply with European MiCA regulations and work closely with local law firms and legislators to ensure compliance. Our governance framework includes regular updates and reports to our investors, ensuring they have access to the latest information. 

As a researcher, I’m responsible for overseeing regular security audits through Hacken, ensuring the safety and integrity of our operations. With the initial 13-ton gold reserve verified, only 250 million tokens are made accessible. The remaining 750 million tokens remain locked in custody and will be gradually released into the ecosystem as new proven gold reserves are added to our system.

What role do you envision the APRA token playing for its holders? Is it mainly intended to function as a medium of exchange, a commodity for speculation, or does it offer a more diverse role within the system?

Varga: $APRA is designed to be versatile within the ecosystem. While it can serve as a currency, providing liquidity and facilitating transactions, its gold-backed nature makes it an attractive speculative asset for those seeking to hedge against economic instability. 

I would say its also important to talk more on the Gold Redemption Program here too. We offer  token holders a unique opportunity to convert their Apraemio tokens into physical gold, bridging the gap between digital assets and tangible value. Through our streamlined process, tokens can be redeemed directly via our platform, where users initiate a request for gold backed by reserves from our trusted supply chain. Once the request is processed, the gold can be collected at designated locations or securely shipped to the holder, ensuring full transparency and traceability. This program underscores Apraemio’s commitment to delivering real-world utility and trust to our community.

Going beyond its defined functions, APRA aspires to serve as a strong foundation for financial inclusion by providing individuals with investment opportunities in gold that were once unattainable. As our network grows, we anticipate $APRA being seamlessly integrated into multiple financial services and platforms, enhancing its functionality and worth.

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2024-11-26 03:39