How SendGold plans to kill two birds (or more) with one stone!
Updated: Apr 22, 2019
Australian company SendGold offers a unique digital money platform that allows its users to save, gift and pay with gold bullion. This comes in the wake of the crypto mania of late 2017 and early 2018 which saw a investors attracted to the ideals of decentralisation and universal common value that was offered by Bitcoin, Ethereum and other blockchain based cryptocurrencies.
SendGold aims to target the fastest-growing sectors globally: mobile payments, cross-border remittances, peer-to-peer transactions, online gifting, social gaming and rewards. All industries showing huge growth potential in the coming years.
For instance P2P payments (peer-to-peer) are expected to grow by double digits through to 2021, according to eMarketer, one of the leading online industry statistics and marketing companies.
Cindy Liu, an analyst for eMarketer has stated that the “strong double-digit growth is expected in both number of users and transaction volume, as consumers become more familiar and comfortable with mobile payments and as more players enter the market. (click here for eMarketer’s article). Sending P2P transactions via SendGold is a simple process of typing in the value of the transaction, for it to then equate to a fraction of Gold Bullion holdings. The ownership of the Gold will be transferred into the account of the receiving party within hours. Pretty simple stuff right?!? This would seem like an absolute no brainer, however often overseas bank transfers take days and are often tied up with stringent overseas transfer of asset regulations.
Another expanding industry that SendGold looks to disrupt is the mobile gaming industry. With particular focus on interactive augmented reality that was recently popularised by Pokemon Go, which saw an influx in user physical activity, as well as local business growth due to increase foot traffic. SendGold has created the App Gold Rush which performs a similar function to Pokemon Go, except instead of capturing digital animals, you uncover real gold which gets sent to your SendGold account. SendGold's offer document states that this is about “gamified customer acquisition and engagement”, not a bad way to combine a successful gaming model and marketing strategy.
If you, like myself, are still trying to grasp the complexity of Blockchain technologies impact on remittance payments then SendGold could potentially be the next best thing. In the Australian market in particular there will always be a want for a physical asset. Take the Australian property market for example, which has seen its consistent growth on the eastern seaboard stemming from the fundamentals of increasing population numbers around major cbd locations creating logical outward pressure on housing prices. However whenever you ask anyone who has bought a property before it is the need to have a physical asset, something that you can see and touch that allures them to property investment. Similar to property, Gold Bullian is something that is physical, the actual Gold itself is stored in high-security vaults operated by Brink’s Global Service, a leading precious metal custodian. CEO Jodi Stanton stated “We are very excited about the opportunity for SendGold to combine what we believe to be history’s most reliable asset with fintech’s most innovative paradigm shift as digital money matures”.
This is one for both the early adopters as well as the old fogey late bloomers, it combines the convenience of new technology with the stability of an enduring store of value.
At the time of the equity crowdfunding raise, SendGold has assessed itself as a qualifying Early stage innovation company (ESIC), therefore there could be considerable taxation benefits of investing in SendGold at this particular point in time. For more information on ESIC investment and the tax implications please review: https://www.hatchi.com.au/blog/tax-back-fuel-innovation-with-tax-incentives
If you wish to read further about SendGold and its Gold Bullian platform please click here. If you have any further questions about Hatchi please do not hesitate to contact me through the About section of our website.