GoMining's GMT Token now Supported by Ledger Hardware Wallet
GMT, the Binance Smart Chain (BSC) and Ethereum minted token backed by real computing power, is now supported by Ledger—a hardware wallet.
GMT supported by Ledger Hardware Wallet
Following the announcement on Aug 12, the team said it would issue GMT-labeled Ledger wallets, delivering them freely to all holders with over 100k GMT tokens.
Cryptocurrencies represent an evolution but not without bumps. The responsibility of security being devolved to end users, most without prior experience in safeguarding valuable assets, have seen billions worth of coins lost in the digital ether and others stolen.
Ledger is one of the most popular hardware wallets that gives holders control of their private keys. They are not connected to the internet, making it impossible for hackers to steal secured assets.
GMT Tokenomics and Burning
According to Etherscan, there are over 1.70k GMT holders who have cumulatively made over 5.3k transfers. The largest wallet holds 12 million GMT tokens representing roughly nine percent of the total supply of 131.9 million. With each token trading at $0.37 at the time of writing on Aug 11, GMT has a fully diluted market cap of $48.8 million.
GMT allows its holder to mine bitcoins. Each token is backed by computing power. The most interesting thing is that the supply capacity of GMT grows. Every week the team introduces new capacities and issues tokens proportionally to these capacities. After the additional issue, they burn 20%-90% of issued tokens and redistribute the released capacity between other tokens. As a result, the volume of token supply increases, which leads to an increase in income. For example, in May the initial supply capacity of GMT was 0,001 TH and now it is 0,001338 TH (an increase of more than 30%).
Notably, GoMining will only burn GMT tokens that haven't been sold--those under their control. Eventually, they plan to destroy between 20 and 100 percent of additional GMT tokens.
GoMining is Resolving Crypto Mining Challenges
The GMT token is issued by GoMining, a company that describes itself as a professional miner founded by a team of international investors in 2017. By April 2021, GoMining said they had various crypto data-mining centers with a dedicated power supply infrastructure of over 200 MW. Fifty percent of their power is sourced directly from renewable sources like wind power and hydroelectric dams.
GMT token holders are rewarded with Bitcoin from the pool where their computing power is directed. Overall, GoMining's goal is to resolve some of the problems would-be miners and investors face.
As the price of Bitcoin continues to rise, access to ASIC miners becomes more challenging due to high demand from institutional grade miners with direct access to some of the world's largest chipset manufacturers like Bitmain. At the same time, the scarcity is further compounded due to the supply-chain disruptions due to the Coronavirus pandemic.
Besides scarcity challenges, ASIC miners are expensive, sometimes beyond the reach of a retail investor. For example, the Bitmain Antminer S19 Pro is upwards of $14,500, out of stock in Bitmain but available for purchase at Amazon—which presents further challenges, mostly on trust. The scarcity and cost barriers don't include the electricity expenses for operation and cooling, installation, and maintenance.
Every GMT token in circulation is backed by computing power, measured in TH/s, via Bitcoin's SHA-256 hashing algorithm. GoMining explains that since the project is in operation, holders would receive their daily rewards in BTC. It is unlike cloud mining where rewards are received within a limited period. As mining grows, the GMT token price looks likely to expand due to organic demand for the token and the weekly burns of GMT tokens, reducing supply. GMT holders, therefore, stand to register higher capital gains while also earning more BTC rewards.