Hello Gold is a Shariah compliant gold investment app that allows anyone to buy and sell Gold hassle free. Its built on the Ethereum Blockchain with an aim to help the millions of low to medium income people from emerging countries save in Gold as apposed to their unstable local currency.
We spoke with Robin Lee, the CEO of HelloGold(former CFO of the World Gold Council) to find out more since the successful token sale which raised 17,149 ETH.
Can you briefly explain what HelloGold is?
“The amount of money in a person’s wallet should not be a barrier to his ability to access financial products that the rich enjoy. HelloGold wants to remove affordability and accessibility from the equation through the democratisation and digitisation of financial saving and loan products using real assets starting with gold” Robin Lee CEO HelloGold.
HelloGold has created an easy way for mass market customers to preserve their wealth by buying gold through a secure mobile app
How do customers purchase Gold, do they have to buy HelloGold tokens? Or only in RM1?
HelloGold is currently only available in the Malaysian market – we have plans to expand in 2018. For our customers, there are 2 ways to buy gold:
HelloGold app customers can log in and buy gold 24/7 once they have cleared the KYC process and topped up the app with cash using online banking. Prices track global market spot price and are updated every 5 minutes throughout the day. App customers can buy from as little as RM1. Customers buy, store and sell the gold which is physically vaulted down in Singapore. They can also gift the gold to another account holder, have the gold physically delivered or take a collateralised loan against the gold.
For people that are comfortable using crypto currency, HelloGold has recently launched our gold-backed token (GBT). Each GBT is fully backed by 1g of PAMP 99.99% investment grade gold vaulted in Singapore. GBTs will be available for purchase directly from HelloGold over the next few months to enable us to gauge demand
Why is Blockchain technology needed for buying Gold? What benefits does it provide to the consumer?
HelloGold uses blockchain technology to provide 3 benefits:
Transparency
By publishing the smart contracts and incorporating a blockchain explorer (transaction navigator), it will be possible to review the full list of anonymised transactions and calculate the amount of gold that HelloGold is holding on behalf of customers. This, in turn, can be compared not only to the amount of gold published in the customer gold list (anonymised) but also against the records managed by our custodian.
Security
HelloGold has incorporated several security mechanisms to protect customer accounts. All connections are encrypted using HTTPS. Internal API calls between the core components are secured with additional secret keys and firewall rules that limit interactions between trusted systems. For external facing APIs, for example APIs used by our mobile application, the API calls are further secured with a combination of industry standard OAUTH and secure tokens for each mobile device. The addition of a distributed record adds a further level of security from internal and external attempts to alter account data without leaving an audit trail. The smart contracts are being developed with best practices in mind following constant review of public audit documents. This should ensure that customer accounts are true and accurate.
Access
In addition, the Ethereum smart contracts enable HelloGold to create GBT, tradeable on any exchange which accepts them.With HGF’s gold-backed token everyone will only need the equivalent of a fraction of a dollar to save through gold (GBT works to 18dp). This will make the HelloGold platform available to everyone anywhere in the world
Do you think HelloGold will change how we buy gold in the future?
We are only at the start of our journey to impact the lives of the underserved and unbanked in emerging economies. Since our public launch in April, HelloGold has changed the way for over 4,000 customers when it comes to wealth preservation by providing a modern, convenient and cost efficient access to gold.
We have ambitious plans to expand the use of the product with both new partners and into new markets, to change how more people are able to access affordable financial products that were previously only accessible to the wealthy
Can you share any future plans or partnerships ?
We outlined our expansion plans in the whitepaper that we wrote for the recent token sale, full details can be found there.
In short, HelloGold plans to expand into new geographic markets, specifically Thailand, China, Indonesia and Philippines plus expand the product with new features/technology, asset classes (eg silver/platinum), partners which will enable us to serve new customer segments.
We are also increasingly approached by potential partners in other regions like the Middle East, Eastern Europe and Central Asia as well as Africa to consider expansion into those markets.
Who’s your target market for the app?
The ultimate customers of HelloGold’s platform, are those are not well served by their existing financial institutions and the unbanked. Financial institutions already provide a variety of easy ways for the high net worth and mass affluent market segments to invest in assets like gold so that they can diversify risks at the portfolio level but they do not enable the less affluent customer the same access. HelloGold targets two key market segments: the consuming middle class and the emerging middle class. In ASEAN and China alone, these two groups comprise 55% of the total labour force of 814m people. They saved approx. $505b in 2016, of which we estimate that $212b was in cash deposits.
Why are you running HelloGold on the Ethereum Blockchain over other similar technologies ?
HelloGold is using Ethereum as it is currently the most widely accepted platform that offers all the benefits of a blockchain (full traceability, non-repudiability etc.) and multiple source language implementations that encourage integration. Ethereum will handle only the parts needing consensus, transparency and accountability. Other services will continue to be provided using existing technology.
HelloGold needs a transactional blockchain with a powerful system of smart contracts which have the ability to ensure that a transaction can combine with the results of previous transactions to provide auditable consistent results. To date, Ethereum is the only stable system that has achieved widespread adoption. The decades of experience of our senior development team tell us to avoid anything experimental to run a live system.
Will you be expanding into other metals such as Silver?
Yes. We intend to create other real asset-backed tokens over the next 12 months.
What are you looking forward to in the blockchain space in 2018?
In HelloGold we are looking forward to moving our app backend onto the Ethereum network to provide our customers with greater security and transparency over their gold holding.
HelloGold intends to add different real asset backed tokens and providing more support to entities which support the twin objectives of 1) increasing mass market use of blockchain technology and 2) democratising access for the underserved and unbanked to financial products through the digitisation of these products.
Overall, we think that the blockchain space will continue to develop and mature through 2018. If the pace of change is as rapid as 2017, the industry will be significantly different at this time next year
HelloGold App Google Play:
https://play.google.com/store/apps/details?id=com.hellogold.app&hl=en
HelloGold App Store:
https://itunes.apple.com/my/app/hellogold/id1193095204
