A new gold-based Sharia-compliant stablecoin to launch in the UAE
The Golden M Group, founded in 2019 by UAE businessman Mustafaa Motiwala, has announced that it will be launching a new Sharia-compliant cryptocurrency that is backed by gold — Coin M — by the end of 2019.
They announced that this cryptocurrency will be the "first of its kind in the Middle East" and will offer the working class the potential to "double their investment within a year," with this safe, guaranteed low-risk investment scheme.
“The upcoming launch of Coin M will undoubtedly have a global impact as it is a one-of-a-kind scheme empowering the working class to safely invest in a new cryptocurrency that is gold-based and Sharia-compliant. Unlike most investment opportunities, investors will have a chance to double their investment within a year.”Mustafaa Motiwala, founder and CEO, The Golden M Group
However, according to GoldPrice.org, the price of gold has climbed up by 24.33% in the past 1 year, as of the time of this writing. Following is the price change data garnered from the website:
Following is the price chart of gold in the past 10 years.
While in 20 years, the price of gold has fluctuated as depicted below:
People can invest in the Coin M starting from $100.
We looked at other gold-backed sharia-compliant cryptocurrency in the region. OneGram for example, told us on a call that there is no minimum investment amount. In addition, looking into major cryptocurrency exchange platforms around the world, minimum investment amount ranges from just a few cents, to maximum a few dollars.
Cryptocurrency that is backed by gold, or any other real-world asset, are called stablecoins. Essentially, their value is tied to the real-world value of the asset, making them less volatile.
Mustafaa Motiwala addded, "Whenever you invest in Coin M, you are in a position to make your money back as it is based on a real asset which can be bought back. With cryptocurrencies that are not backed by any asset, you would typically have to find your own buyer in order to make a return on investment."
Ultimately, there has to be a buyer for any asset - cryptocurrencies aren’t any different. When using a cryptocurrency exchange, you do not have to find a buyer yourself, as the exchange will create an order book with buy and sell orders. As long as there is somebody willing to buy, you should be able to sell it without knowing the buyer - very similar to stock exchanges.A crypto trader who wished to remain anonymous