Silvertoken facts for kids
Silvertoken is the receipt for the purchase of silver. It is a cryptographically secured receipt which utilizes Ethereum as blockchain. Silvertoken represents the bullion of silver. Since Silvertoken is deployed on the Ethereum blockchain, it allows users to transact with physical silver. Each Silvertoken represents vaulted silver bullion stored and insured at no cost to the holder. Silvertokens can be redeemed for the silver they represent or exchanged for government issued currency.
History
Silvertoken was created in early 2017 by Ric Malik and Andrew Malik. Sales of tokens started in November 2017. Silvertoken is a cryptographic receipt for the purchase of physical silver which provides stability to cryptocurrency by receiving it's value from an actual asset. The company offers physical silver for making transactions, the user receives a redeemable receipts for the silver they purchase in the form of a digital token, which is known as Silvertoken (SLVT). Silvertoken is the combination of digital currency and silver bullion. The purpose of Silvertoken is to create a digital currency with minimum volatility and stable value. Cryptocurrencies and government issued currencies are notorious for their instability and loss of value. The company's business model is based on the trajectory for continuous growth from transaction growth.
The silver bars that represent Silvertokens are the product of a London Bullion Market Association refiner, which hold to the LBMA Good Delivery standards. Each Silvertoken, as of May 2018, represents 1 troy ounce of .999 pure silver bullion. Silvertoken is an ERC20 token built on Ethereum blockchain and can be kept in ERC20 wallet. ERC20 is a technical standard used for smart contracts on the Ethereum blockchain for implementing tokens.. When a transaction is made, the sender is charged with a 1% transaction fee, and the receiver gets the cryptographic receipt commonly known as Silvertoken. The user can hold Silvertokens in any ERC20 wallets or they can exchange them for government issued currency or cryptocurrency. Whenever a Silvertoken is sold, the wallet address changes and the cryptographic receipt is programmed to send 1% of the total amount of the transaction in the form of Silvertokens back to the company to pay for the required storage, insurance, overhead and profit. The unused portion of the Silvertokens sent from transaction fees is used to purchase more silver to increase the amount of silver that each Silvertoken represents. The growth rate of silver that represents each Silvertoken is a direct correlation to the velocity of use.
Silvertoken is owned and operated by SLV Token, LLC Nevis in Saint Kitts and Nevis. The company's silver reserve is stored in a UL Class 3 vault in Grand Cayman. The Silvertoken silver is insured and underwritten by Lloyd's of London and audited by Bureau Veritas.
