After years of continually high inflation, finance experts around the globe have correctly predicted that gold would continue to assert its crucial role as an inflation hedge – featuring a price increase of more than 50% in the past 18 months.
Despite the cult-like nature of the crypto industry, which fiercely asserts Bitcoin as the new gold, the traditional version of gold is still very present within blockchain circles as well. Projects such as Tether Gold and Pax Gold have long introduced gold-pegged coins to the crypto space. Collectively they now hold more than $1.6 billion in gold reserves.
However, while gold is undoubtedly a proven store of value, it is still subject to considerable volatility. In an effort to create a new generation gold-backed token, Hungarian company Apraemio is now entering the space with a novel approach. Specifically, the company’s gold-backed token, $APRA, is directly tied to the yields of a Mali-based gold mine that is set to supply the token’s reserves for the next 30 years. In this interview, Apraemio’s CEO, Zoltán Varga, a business professional with over 15 years of experience in the gold industry, shares insights into the project’s goals, operations, and plans for the future.
We spoke with Apraemio’s CEO, Dr. Zoltán Varga about the story behind this bold strategy and discussed the broader implications of its innovative strategy to asset-backed tokens.
What inspired Apraemio to develop a new gold-backed token, and how does the brand differentiate itself from other similar projects in the market?
Varga: At Apraemio, we were inspired by gold's timeless value and stability, especially during economic uncertainty. Our goal was to combine this stability with the global access that crypto brings, offering a unique asset that can hedge against market volatility and inflation.
Unlike many other gold-backed tokens, Apraemio is backed by ever-increasing tangible gold reserves from Mali, Africa, with a commitment that 50% of the mined gold is reserved for token redemption. This means that we are not another gold stablecoin, but a way for anyone to have access to the yields from a real life gold mine.
Our gold mining ecosystem partner is GGS, a company registered in the Republic of Mali with an exclusive 30-year gold mining license. Our focus on transparency, regulatory compliance, and security further sets us apart too, providing our token holders with peace of mind and trust in the assets they hold. In our ecosystem, it is also essential to emphasise that Apraemio is building a whole utility-based ecosystem where holders can exchange their tokens for real world asset purchases starting in 2025.
Could you provide more insights into GGS's gold mine operations and explain what benefits or returns $APRA token holders can anticipate through this partnership between Apraemioand GGS?
Varga: As I mentioned previously, Apraemio has a key ecosystem partner from the Arteusgroup - Green Gold System Europe SARL (“GGS”). This is not only where the gold mining expertise lies but also who owns the mining and explorational license. GGS’s gold mining operations in Mali are managed with the utmost efficiency and care, leveraging the team's extensive experience in the gold industry since 2008.
GGS’s exploration in Mali's Komassala Sud region, has achieved significant milestones recently, with the discovery of 13 tons of proven gold reserves within a mere 1.2 sq km of the licensed 65 sq km area. This reliable result underlines the region's vast untapped potential and sets a strong foundation for the 2024 drilling program. The program aims to scale these findings, refine reserve estimates, and further bolster the integration of gold reserves into Apraemio’s blockchain ecosystem, providing a stable and tangible value to its $APRA tokens.
Of course token holders benefit from the stability and intrinsic value of gold, but with us they also can have a peace of mind knowing that the operations behind the gold are ethical, secure and handled with the utmost care. Since one of the core aims of the project is to democratize the gold mining industry, we made sure that investors have the unique opportunity to redeem their tokens for real physical gold, which is not offered by many other projects.
What specific expertise does the GGS team bring to ensure the effective management of the gold mine? Additionally, could you outline the key steps in the current development plan for Apraemio and the Web3 leg?
Varga: GGS’s team comprises seasoned professionals with deep-rooted expertise in gold mining, financial management and international policy development. With over a decade of experience in gold mining, we ensure that operations are conducted efficiently and sustainably.
After the planned exploration activities, expected by the end of 2026, approximately 37.5% of the total 20 km2 area designated as near-surface, easily mineable gold-bearing ground will have been explored. This phased approach allows for a focused and efficient evaluation of high-priority zones while progressively covering a larger area. The new drilling will specifically target zones where geological indicators suggest favourable conditions for gold mineralisation, further delineating the resource potential within the Komassala Project.
Our current development plan includes expanding $APRA trading to centralised exchanges on November 25, 2024, through partnering with BitMart, and also to develop further our gold-backed utility ecosystem for holders to leverage our gold redemption program, the car leasing option, as well as the property buying alternatives and further more. The final key step for our web3 leg is to establish relevant partnerships within the crypto space that can bring maximum value to our token holders and expand the Apraemio influence across the space.
What governance or control mechanisms are in place to ensure investors have access to accurate and up-to-date information regarding the progress of the mine development?
Varga: Transparency and accountability are at the core of our operations. We comply with European MiCA regulations and work closely with local law firms and legislators to ensure compliance. Our governance framework includes regular updates and reports to our investors, ensuring they have access to the latest information.
Additionally, we conduct security audits by Hacken. We also ensured that with the proven reserve of the first 13 tons, only 250 million tokens will be accessible, and the 750 million rest will be locked to custody and released further when a new proven gold reserve is added to the ecosystem.
How do you foresee $APRA being utilized by token holders? Will it primarily serve as a currency, a speculative asset, or does it have a broader purpose within the ecosystem?
Varga: $APRA is designed to be versatile within the ecosystem. While it can serve as a currency, providing liquidity and facilitating transactions, its gold-backed nature makes it an attractive speculative asset for those seeking to hedge against economic instability.
I would say its also important to talk more on the Gold Redemption Program here too. We offer token holders a unique opportunity to convert their Apraemio tokens into physical gold, bridging the gap between digital assets and tangible value. Through our streamlined process, tokens can be redeemed directly via our platform, where users initiate a request for gold backed by reserves from our trusted supply chain. Once the request is processed, the gold can be collected at designated locations or securely shipped to the holder, ensuring full transparency and traceability. This program underscores Apraemio’s commitment to delivering real-world utility and trust to our community.
Beyond these roles, $APRA aims to be a cornerstone for financial inclusion, offering individuals access to gold investments that were previously out of reach. As we expand our ecosystem, we envision $APRA being integrated into various financial services and platforms, further broadening its utility and value.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
