The creation of Bitcoin Gold has caused an interesting shockwave in the cryptocurrency industry. A lot of people converted altcoins back to bitcoins to ensure they could partake in this “airdrop”. It seems someone took it upon themselves to create an Ethereum Gold token as well, even though its purpose remains rather uncertain. So far, these tokens are valued at US$0.08 each, although no one can explain why.
What is the Deal With Ethereum Gold?
No one can deny we have seen dozens of useless tokens being created on top of the Ethereum blockchain as of late. The largest downside to this is that there will be more blockchain bloat than ever before, even though some of these tokens shouldn’t exist or have any value to begin with. It is unclear if the same people who run Bitcoin Gold are behind Ethereum Gold, although it is obvious why some people would draw parallels between the two. Neither of them serve any real purpose whatsoever.
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Looking over the Ethereum Gold website, it isn’t exactly clear what this currency entails. It is apparently a new smart contract-governed ecosystem which uses blockchain technology by using the value of gold. This explanation makes no sense whatsoever, but then again, this is a project most people will gladly ignore. The site also claims that this currency was created by “a team of top technology and finance professionals”.
Surprisingly enough, the Ethereum Gold website makes mention of issuing debit cards in the future. An image on the site clearly shows a Visa logo, although it’s highly doubtful we’d ever see cards like it in the real world. Moreover, using Visa’s logo without permission from the company could cause some major issues for this team in the future. They note their fee will be “reasonable” without going into further specifics.
On the roadmap, we see nothing that really stands out whatsoever. A beta launch of the platform is allegedly expected in early November, although it remains to be seen if that will be the case. The first profit payments associated with ETG are projected to take place on December 31st. So far, there are no official plans for 2018 other than an “expansion to other countries and mobile app”. No one knows what this mobile app entails exactly or why they should care about it in the first place.
What is even more surprising is that people actually want to trade Ethereum Gold on EtherDelta right now. The token has seen a near-300% value increase, pushing its price to over US$0.08. Considering that there are just over 4 million tokens in circulation right now, it is certainly possible people will make some good money by buying the tokens and then dumping their stash on novice investors later on. Creations like this one serve no real purpose other than being a pump and dump scheme waiting to collapse.
Investors always need to be wary when they come across new creations like this one. It takes very little money to create an artificial pump and dump associated with Ethereum Gold. With under US$1 million in volume, this coin has already tripled in value over the past 24 hours. This is an interesting get-rich-quick opportunity for those willing to risk a lot of money, but everyone else should clearly pass up this opportunity and make better choices.