An interesting Initial Coin Offering (ICO) has been announced for gold mining in Mali. Known as GOLDEA (Gold Exploitation Asset), the initiative will use funds raised selling its GEA tokens during the ICO phase for setting up their gold mining operations in Mali.
The first GOLDEA gold mining project is to be located in the Republic of Mali at a mine that is believed to have 10 tons of gold reserves according to the team at GOLDEA.
A comparison of GOLDEA and traditional gold mining projects. | GOLDEA
"The main problem is unavailability of secured, global and flexible entry investment system which serves not only financial giants but the interest of all participants equally," reads a statement by GOLDEA explaining what problem they are partly addressing.
By using smart contracts to connect participants (token holders) with the the gold mining project during the funding (ICO), construction and production stages without any third party involvement, GOLDEA hopes it can remove existing barriers and achieve full transparency in the funding and operating of gold mines. Interestingly and given the GOLDEA platform will be based on blockchain technology, profits, once the gold mine in Mali is operational, will be distributed automatically from gold sales to all GEA token holders.
"The gold mining provides unique opportunity to own an asset ’’which never failed’’ in value for 5,000 years history of humans. About 2,500 tons of gold is mined per year globally. The gold industry reached more than $1 trillion revenue in 2016 and is booming, but, due to archaic funding methods, only 0,5% of people worldwide have an opportunity to make profit on investing in gold mining." further reads GOLDEA's statement.
According to various reports, 2016 witnessed the global production of gold increasing by 2% and yet still approximately 99,5% of the" gold audience" worldwide were not able to participate in gold mining investing.
This is where GOLDEA be live that by offering their GEA tokens in exchange for, among others, profits from gold mining operations, they will unlock gold mining potential to millions of investors across the globe and create new gold mining ecosystem possibly worth over $500 billion.
Video progress reports with relevant documents will be published for token holders to review progress.
GOLDEA has also indicated that as part of their struggle against poverty, some of the proceeds will be reserved for the charity program of a local community in Mali.
ICOs have come under attack recently especially given how some enterprising ICO founders vanished as soon as they raised a certain amount of money. This has led to America's SEC (Securities Exchange Comission) establishing a Cybercrime unit to clamp down and prosecute what it deems to be fraudulent IPO. GOLDEA could well be a solution to democratizing gold mining investments but without regulation, time will tell.
The first stage of the GOLDEA ICO kicked off on 1 December 2017, and runs through to 31 December 2017.