Silvertoken facts for kids
Silvertoken is like a digital receipt you get when you buy real silver. It's a super safe digital receipt that uses a special computer system called Ethereum blockchain to keep track of everything. Each Silvertoken stands for a piece of real silver.
Because it's on the Ethereum blockchain, people can easily buy and sell real silver using these tokens. Your Silvertoken means you own silver that's kept safe in a special vault and is insured. You don't pay extra for storage or insurance. You can trade your Silvertoken for the actual silver it represents, or you can swap it for regular money like dollars.
How Silvertoken Started
Silvertoken was started in 2017 by Ric and Andrew Malik. People could start buying these digital tokens in November 2017.
The main idea behind Silvertoken was to create a digital currency that was more stable. Many digital currencies and even regular money can change value a lot. Silvertoken tries to be steady because its value comes from a real thing: physical silver.
The company lets people buy real silver. When you buy silver, you get a digital receipt called a Silvertoken (SLVT). This means Silvertoken combines digital money with real silver. Its goal is to make a digital currency that doesn't change value too much.
How Silvertoken Works
The silver bars that back Silvertoken are made by a company that follows strict quality rules. These rules are called LBMA Good Delivery standards. As of May 2018, each Silvertoken stands for one troy ounce of very pure silver (99.9% pure).
Silvertoken is a special type of digital token called an ERC20 token. It's built on the Ethereum blockchain. This means you can keep your Silvertokens in any digital wallet that supports ERC20 tokens.
When you send Silvertokens, a small fee of 1% is taken from the sender. The person receiving the tokens gets the digital receipt, which is the Silvertoken itself. You can hold your Silvertokens in a digital wallet, or you can trade them for regular money or other digital currencies.
When a Silvertoken is sold, the system automatically sends 1% of the total amount back to the company. This helps pay for things like storing the silver, insurance, and other costs. Any extra money from these fees is used to buy more silver. This means that over time, each Silvertoken might represent even more silver, depending on how much people use them.
Where Silvertoken is Kept
Silvertoken is owned and run by a company called SLV Token, LLC Nevis. This company is based in Saint Kitts and Nevis.
The real silver that backs Silvertoken is kept very safely. It's stored in a super strong vault in Grand Cayman. This vault has a special high-level security rating. The silver is also insured by a well-known company called Lloyd's of London. Another company, Bureau Veritas, regularly checks the silver to make sure everything is correct.
