My added comments: This certainly came out of nowhere. The ink was not fully dry from our article just below on the BullionCoin launch when this news broke. I cannot say I am real surprised though because during my efforts to research this as potential news impacting the gold market, I encountered difficulty getting consistent answers to some questions I had asked related to the institutional support for BullionCoin. At this point, there is nothing to indicate such institutional support exists and the comments this year about large gold buy orders remain unexplained and of doubtful credibility. For anyone interested, we documented the full trail of comments on this during 2017 in this article up to 8-15-17 where the trail ends.
If more news surfaces, we will cover it here if it appears to be significant news. Otherwise, our coverage of BullionCoin ends here.
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This information was also sent out:
Important Notice on BullionCoin following its launch on 15 August:
"BullionCoin and the Allocated Bullion Exchange have been collaborating closely with each other until it's launch in order to deliver a gold & silver backed digital currency.
However, a few minutes after BullionCoin's website went live, the ABX issued a statement announcing it was withdrawing from its collaboration with BullionCoin citing several reasons.
Whilst this unfolds, I am going to treat the information as objectively as I can, and so should you.
I strongly suspect it may well turn out to be a storm in a tea cup and not actually be anywhere near as drastic as it sounds, and BullionCoin could well become the digital currency we all want it to be.
Things like this often happen in business and it should not reflect poorly on either party as they both have a great product.
I have spoken to Thomas Koenye, the co-founder of BullionCoin, and it looks like ABX's statement may have been unfairly issued and there are some areas that need clarification which I have added as a pre-face to ABX's statement. Thomas' reply is here.
However, as my primary and overriding concern is the safety and security of client and potential client money and their vaulted precious metals, I will always take the options and decisions that will not expose you to any risks. I will update you as soon as I have completed my due diligence on this matter.
If you have any questions about this then please do contact me and I'll be happy to help. You can also contact BullionCoin and ABX for further clarification from them."
Yours faithfully,
David Gibson, Managing Director
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My additional added comments: If you take time to read
this point by point response by David Gibson to the statement released by ABX, you will understand what I meant above when I said I had difficulty getting consistent answers to some questions I had asked. It is pretty clear from this statement by
ABX Associate Member David Gibson (GoldVu) that he was not always on the same page in terms of his understanding of BullionCoin. Also, note that he says he was "very surprised at ABX's statement". I have no doubt that is true.
Trying to cover this story has been interesting, but will end with this article unless something truly impacting the gold market arises out of this. The business dispute between
BullionCoin and
ABX is not the type of news we have interest in covering here. We did cover this story until the BullionCoin launch because of the potential for this to impact the gold market and the price of gold. No such impact appears imminent based on this latest news. Time to move on.
Update 1-29-18: It appears the ABX has announced a new partnership that will produce a gold backed cryptocurrency. I am not sure what the situation is with BullionCoin, but they do not appear to be involved with this new partnership with ABX.
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