Frequently Asked Questions
Please find below answers to some of the most frequently asked questions about MetalStream and the MSGLD tokens.
How can MetalStream offer a discount to the spot price?
MetalStream has negotiated favourable terms on the purchase of gold from its suppliers, which allows MetalStream to sell MSGLD tokens at a 10% discount to the current spot price, and still make a healthy profit.
The model is advantageous to both suppliers of gold and purchasers of the tokens.
What is the quality and security of bullion for redemption?
What financial benefits do MSGLD security tokens offer token holders?
MSGLD can be redeemed for gold after the 90 day holding period. held as a long-term investment, or traded on the market. The MetalStream model ensures that the price of the tokens will not fluctuate from the spot rate of gold as temporary price inequalities will be re-balanced by arbitrage traders and trading bots taking advantage of price inequalities.
How will the tokens have liquidity?
MetalStream will list MSGLD on several reputable, regulated and accredited digital exchanges, tradeable 24 hours a day. Tokens may also by traded directly between parties, and via any OTC broker dealing with digital securities. In addition, tokens may be redeemed for physical gold by token holders at any time beyond the initial 90 day, as per their terms of issue.
What is the asset backing of the tokens?
Each issuance of MSGLD is backed by precious metal sourced by MetalStream and stored with independent custodians. As additional gold is delivered, additional MSGLD are issued. Each MSGLD token is backed by 1g gold, and 1,000 MSGLD can be redeemed for a 1kg gold bar.
What if I lose my tokens, or they are hacked and stolen?
Ownership of gold via MSGLD is safer than traditional ownership for a number of reasons. The blockchain offers an immutable record of ownership, and a full audit trail which includes the physical verification of the gold itself. Should MSGLD holders lose access to their wallets (for example, by forgetting a password or having their computer stolen), the tokens can be reissued by MetalStream. Furthermore, in the unlikely event of hacking, theft or fraudulent transfer of the MSGLD and MetalStream can force a transfer of the tokens back to their rightful owners.
What if the underlying metal price drops?
MSGLD is offered at a 10% discount to the current spot price of gold, which mitigates against a potential negative drop in the future spot price. Purchase of MSGLD offers investors improved diversity and hedging opportunities.
What is the subscription price of the tokens?
Each MSGLD costs USD 50.00 and is backed by 1g of gold, a 10% discount to the current spot price of gold.
How many tokens will be issued in this offering?
The total number of MSGLD issued in this offering is 5.2 million, representing 5,200 kg of gold.
What is the minimum subscription?
The minimum subscription is 50 MSGLD or USD 2,500.
Is there a maximum subscription?
The maximum subscription is 100,000 MSGLD or USD 5 million.
What currency can be used to subscribe?
Tokens may be purchased with USD, ETH or BTC.
Is there a minimum holding period for the tokens?
Tokens purchased under this offer have a minimum holding period of 90 days, enforced via transfer restrictions on the tokens issued.
Is there a minimum token redemption number?
Holders of MSGLD are granted the right to redeem their tokens for physical gold, at the rate of 1,000 tokens for one 1kg gold bar, after the minimum holding period of 90 days as per the terms of issue.
Redeemed bullion will have a minimum fineness of 99.5% as certified by the LBMA. On redemption, the option will expire and the tokens will be burned.
How many MSGLD have been issued?
MetalStream has conducted a private placement of 2.8 million MSGLD. These combined with the 5.2 million on offer in the general public offer means there will be a total of 8 million MSGLD issued.
Are the tokens compliant?
The MSGLD token is defined on the Ethereum blockchain at address 0x3054c53193f7c8624628a5ce0949c56da94443d6.
MSGLD is certified by Blockchain Labs Asia to be compliant with the T-REX security token standard, and meet the requirements necessary to be listed as a “Security Token” and “Tokenized Asset”. The source code for the smart contracts can be inspected along with information about the token and holders via Etherscan.
The tokens are issued by MetalStream in Labuan, and both their issuance and offering are regulatory compliant.
Are the tokens safe and secure?
Aside from having an asset-backing, as a T-REX compliant security token, MSGLD offer inherently greater levels of safety and security to the holder over a utility token or cryptocurrency. Ownership of precious metal via MSGLD is safer than traditional means of ownership, as the blockchain provides an immutable audit trail and proof of ownership, including the physical verification of the gold and silver itself. The tokens were created using fully audited smart contracts.
What if I lose access to my tokens?
If a token holder loses access to their tokens, MetalStream is able to reissue the MSGLD tokens quickly and efficiently. In the unlikely event that the tokens are proven to have been transferred to a third-party as a result of theft or fraud, MetalStream may execute a forced transfer to allow full recovery of the MSGLD token by the rightful owners.
How liquid are the MSGLD tokens?
As tokenized gold available for purchase globally, MSGLD tokens are inherently more liquid than physical gold. MSGLD tokens can be traded directly, and are planned to be listed on multiple secondary exchanges, offering 24 hour liquidity for token holders. Tokens are by their nature more efficiently and easily stored and traded than physical metal.
Do the MSGLD tokens expire?
The MSGLD token holder is granted a perpetual option on gold which can only expire or be cancelled upon delivery of the physical bullion against the token. There is therefore no expiry date on the MSGLD token itself, which can be held or traded indefinitely until redeemed.