Silvertoken is owned and operated by SLV Token, LLC Nevis in Saint Kitts and Nevis and was created in early 2017 by Richard Malik and Andrew Malik. Silvertoken is the receipt for the purchase of silver. Silvertoken is cryptographically secured receipt which utilizes a blockchain. Silvertoken can be used as a decentralized cryptocurrency. Silvertoken attempts to represent the value of silver. Silvertoken is deployed with a blockchain and allows users to transact with physical silver. Each Silvertoken represents vaulted silver bullion stored and insured at zero cost to the holder. Silvertokens can be redeemed for the silver they represent or exchanged for government issued currency or cryptocurrency.
Sales of silver started in November 2017. Silvertoken is a cryptographic receipt for the purchase of physical silver which is claimed to provide stability to currency 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. It is claimed that Silvertoken has been designed to create minimum volatility and a stable value. The company's business model is based on transaction fees.
All 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 using the Ethereum blockchain and can be kept in ERC20 wallet. ERC20 is a technical standard used for smart contracts using 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.
The company's silver reserve is stored in a UL Class 3 vault in Grand Canyon. The Silvertoken silver is insured and underwritten by Lloyd's of London and audited by Bureau Veritas.
Silvertoken, Redeemable for Silver - How it Works
September 28, 2017
- Cryptocurrency tokenA cryptocurrency token is a token used to represent a fungible or tradeable asset or a utility that resides on its own blockchain. A token can also serve as a substitute for other things.
- Asset based token
- CryptocurrencyA cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies.
- SilverChemical element with atomic number 47
- ERC-20 TokenERC-20 is a token standard describing the functions and events that an Ethereum token contract has to implement.
- EthereumEthereum is an open-source, public, distributed blockchain computing platform featuring smart contract (scripting) functionality, which facilitates online contractual agreements.
- Smart contract (blockchain)A smart contract (self-executing contract, blockchain contract) is an agreement between parties that is enforced by a program encoded onto a blockchain which executes code exactly as originally written.
- Proof-of-workA proof-of-work (PoW) system (or protocol, or function) is an economic measure to deter DOS attacks and other abuses (e.g. spam) on a network by requiring some work from the service requester, usually meaning processing time.
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