Honolulu-based company SmartLab, Inc. recently announced the launch of its gold-backed NFT, GOLDen Frog. The project was made possible by authorizing a gold processing and advertising consortium agreement along with Utah-based mining firm Scott/Westpac LLC, which was owned by a big American financial group.
Nowadays, the conventional process of making generative art is through operating a machine algorithm, whether it is made as an NFT or not. Also, minting a generative art NFT adds another level of uniqueness that could not have been accomplished before. That is accomplished by including inputs to the piece of art like transaction ID, gas price, or wallet address.
The main limitation of gold as an investment category has been that its ownership is hard to transfer. NFT gold owners can sell their gold everywhere and to anybody in a blockchain marketplace. That’s a big benefit for gold investors, offering them better liquidity and a higher sales margin.
The frog in Japanese is Kaeru. It is also said that Kaeru brings good fortune to the Japanese culture. It also has another meaning, which is to exchange. To exchange for gold is the meaning behind the image of SmartLab’s generative NFT.
GOLDen Frog will be the first NFT with gold set as collateral. It was done by concluding a gold refining and sales consortium agreement with Scott/Westpac LLC’s representative director, David Scott. The company owns mines that are invested in by one of the major financial groups. They have also signed a joint business contract on the refining and sales of the gold.
Every GOLDen Frog NFT represents an underlying bar of gold, with both the physical bar of gold and token sharing a unique serial number. The tokens are also sold with a warranty, making sure the NFT owner has the full legal rights to save the physical gold bar.
When a user buys GOLDen Frog NFT, the physical gold bought by the user is stored by an American security firm and can be drawn in physical form everywhere in the world.
The GOLDen Frog NFTs have been already listed on the popular Ethereum-based NFT marketplace CHAINART, along with the tokens representing either 10 grams, 50 grams, 100 grams, 300 grams, and 500 grams. All of these will be sold as a total of 5,000 pieces of generative art.
Five percent of the trading profit after the second will permanently be given to the first holder. However, the permanent five percent back for an NFT’s trading is limited to selling and buying on the CHAINART marketplace. It doesn’t apply to the exchange for gold or selling or buying outside the marketplace. The right also exclusively applies to the first owner.
According to a representative from SmartLab, Inc., “We are very excited with this campaign. Every time a transaction occurs, the first holder will get five percent of the sale price after the second sale. That means anyone can be one of the first holders during the campaign.” The world is also changing fast. A huge revolution is happening in the financial and blockchain world, and it will spread to all types of businesses. The major attraction of the NFT is its addition with the blockchain and its efforts to enhance game stability, user satisfaction, profit margin, and more.
The team is highly confident that NFT, neither real estate nor stocks, will play a vital role in the next generation of assets. Meanwhile, gold has universally been one of the oldest assets in human history. The GOLDen Frog is considered an epoch-making work, combining the stability and history of gold with an NFT.