AltCoinTrader becomes the first African cryptocurrency exchange to go live with real gold and silver trading on their exchange.
This new addition has been met with great results as the first days of trading attracted hundreds of thousands of rands in trading volume.
Trading went live at 11 am on Monday, 5th August, with 11.32 ounces of gold trading hands in the first 30 minutes, while 41.49 ounces of silver were traded within that same time frame. Within the first three days of trading, a combined total of R1.2 million worth of the assets changed hands on the AltCoinTrader exchange.
CEO of AltCoinTrader, Richard de Sousa in his a recent interview expressed optimistic views on the volume of cryptocurrency trading in South Africa. He said:
It is becoming clear that Bitcoin and associated cryptocurrencies are significant stores of value, and as more people realize this, trading volumes in this new asset class will continue to rise
In a recent interview with China Global Television, de Sousa said that the deflationary nature of precious metals like gold and silver are why his team considered introducing digital metal trading:
Cryptocurrencies are seen by many enthusiasts as being outside of the bubble of traditional financial markets, and thus can be a hedge against potential recession. Precious metals have been treated the same way for generations, so it made sense for us to develop a secure, digital method for our users to diversify their cryptocurrency portfolio into these precious metals.
All gold and silver purchased and traded on the exchange are backed by a real-world 1-ounce coin equivalent. In the case of gold, the asset is represented by 1 ounce Krugerrands, while silver is a standard 1-ounce silver coin.
AltCoinTrader is quick to emphasize that no physical assets are kept on their property, with the 1-ounce coins held in reserve with an unnamed retail partner in South Africa.
Should users wish to cash out their gold and silver bought on the exchange, they can only do so in 1-ounce units and can either select a hand-delivered courier, or an option to collect from the said retail partner.
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