$500 Million — The Price of The Islamic Economy Global Expansion
AnalysisBit News Today2 min read
OneGram launched an initial coin offering aiming to raise around $500 million. The Initial Coin Offering (ICO) began on May 21 and will run for 120 days, aiming to sell over 12.4 million OGC tokens. Launched in Dubai in May, OneGram describes itself as the first Sharia-compliant cryptocurrency backed by physical gold reserves.
"We are very pleased with early support for the OGC token crowdsale from the cryptocurrency and Islamic finance communities," said Ibrahim Mohammed, CEO of OneGram.
Islamic Finance Touches The Digital Age
The creators designed OGC so that it would operate within the rules of Sharia law. Charity is a central part of Islamic finance - OGC plans to donate 2.5% of all profits to the One Gram Foundation. For each token, there's an actual gram of gold backing it.
The gold will be stored in a vault located inside Dubai International Airport. Buyers must register with the company's gold trading partner, Goldguard. The gold can then be redeemed for OGC tokens at a 10% premium.
To build trust, OneGram has engaged Pricewaterhousecoopers for auditing and Islamic finance experts Al Maali as advisors.
Once the cryptocurrency is deployed on the blockchain, 70 percent of transaction fees will be used to purchase more gold, increasing the quantity backing each token. Of the remaining transaction fees, 25 percent will fund development and operations, while 2.5 percent goes to charity and 2.5 percent rewards proof-of-stake miners. If tokens remain after 120 days, a new supply will be created to match what was sold.
Its gold backing and Sharia compliance give OGC a stronger opportunity to enter the mainstream, particularly in the Middle East, South Asia, and several African nations. OGC is working with Ferdous Ahmed, the chief executive of 21 Mil, to create educational resources and software that make cryptocurrency more accessible. The long-term goal is to create a blockchain payments solution that meets Islamic finance standards.
By focusing on the Sharia sector, OGC plans to enter unique territory within an Islamic finance market that holds roughly $1.2 trillion in assets, according to PricewaterhouseCoopers.
