One day in 2014, I was waiting for a friend at a cafe. My friend was late, so I started looking up bitcoin on my mobile phone. At that time, it was selling around $250. Although I really loved the idea and wanted to learn more about bitcoin and the blockchain, it seemed too volatile and I was worried about security. In fact, in February of that year Mt.Gox had been forced to close.
It occurred to me that if there was a way to reduce bitcoin’s volatility, I would like to invest in it. Furthermore, the concept of the blockchain, an encrypted, distributed and secure ledger , seemed absolutely fabulous.
But it was not until October 2015, when I began to realize the need for a less volatile cryptocurrency. A year later, another friend described how cumbersome it was to sell some her gold. It had to be stored in a vault and the conversion from Canadian dollars (the vault was in Canada) to Euros turned out to be very costly. She said that the price she obtained for the gold, the rate of exchange her bank used to convert the Canadian dollars, together with the bank transfer fees, cost her nearly 4% of the total amount it would have cost to replace the gold back into the vault. As a former banker, I considered 4% outrageous! So, I visited the gold-backed bitcoin concept again, but this time from a different angle; focusing on the ease and low cost of transfer.
I contacted two great guys through a bitcoin blog and together we started to look into how viable it would be to create a gold linked bitcoin using the colored coins protocol. By March 2016, we hit a roadblock with the problem of the complexity of transferring funds and how to collect storage fees. I remember asking a friend to receive and send back the colored coins that represented one ounce of gold. She said, “I am the wrong person to ask. I don’t know a thing about bitcoin.” I replied, “You are the perfect person. The youth don’t really have a problem with it but, it is people like us, the less young, who should be able to do it. If you and I can do it, then anyone can.” Unfortunately, at that time, we didn’t have much success.
But I was not going to give up. In April 2016, I started looking into the Ethereum platform. It’s Smart Contracts feature fitted perfectly with the concept of issuing tokenized assets backed by precious metals. This is when the concept of Orocrypt was born. Orocrypt was conceived as an alternative proof-of ownership for precious metals. These precious metals such as gold , or silver would be represented via tokens and the tokens would be issued on the secure, encrypted and decentralised Ethereum blockchain.
The tokens were going to be compatible with all Ethereum wallets, could be easily traded instantly on major exchanges and the gold representing them could be physically redeemed from us anytime. The gold would be bought from reputable sources. On top of that, the gold would be stored in secure vaults around the world in Switzerland, Liechtenstein, Singapore, Australia and the Cayman Islands to prevent single storage failure and the vaults would also be audited monthly by renowned auditors such as the SGS in Switzerland and Liechtenstein.
Some of my friends expressed an interest in joining the venture and by February 2017, we formally agreed on the principles and committed the necessary funds to have the infrastructure that would allow us to buy and store precious metals, issue digitized tokens and raise the startup funds to make Orocrypt operational. We paid particular attention to the legal issues regarding equity crowd sales and Anti Money Laundering/Know Your Client procedures. Although there are few legal frameworks regarding token sales and legal claims on digital assets, we have done our best to anticipate and structure Orocrypt and its tokens to be as compliant as possible with current and future expected requirements.
We can say our efforts are geared to being a reliable player in the asset digitization eco-system. The opportunities are abundant and our team has the capacity not only to identify many of them, but to also implement them solidly and profitably. We envision a world in which anyone can buy, trade and exchange gold without a middleman on a secure, decentralized and encrypted platform. We believe that there is a need for non-volatile crypto asset and that together, we can achieve our vision in the long run. Thus, we bring you Orocrypt.
Founder and CEO