DEMEX ( DECENTRALIZED METAL EXCHANGE) HAS BEEN LAUNCHED

Today, we see Blockchain projects that find solutions for different sectors with very different features. Our main goal in the Hoopoe platform is to integrate precious metals into a decentralized platform, to increase product diversity in investors’ portfolios and to create an alternative investment instrument when the market is bearish.

On our platform, we will mediate the trading of two of the most well-known precious metals, ETHXAU and ETHXAG. In the future, we would like to list all precious metals on the London Metal exchange on Demex.

At Demex, you can not only invest in precious metals, but also earn passive income from these values. Hoopoe pioneers the transformation of investments such as gold and silver into a more valuable investment by breaking new ground in this sense.

Our new goal is to enable transactions not only on the Ethereum network, but also on the Bsc, Polkadot and AVAX network.

WHY GOLD?

Gold’s impact on the economy waxes and wanes, depending on how safe other investments are. When other investments seem too risky, gold always looks like a good hedge. In fact, you can tell how healthy the economy is from the price of gold. When the U.S was on the gold standard, the precious metal had an even greater importance.

Before gold was used as coinage, its value was recognized. Gold jewelry is buried in the Tomb of Djer, king of the First Egyptian Dynasty. Gold’s beauty, luster, and malleability made it perfect for many uses. In fact, the Egyptians became masters in the art of beating gold into leaf.

Gold was first used for money in 643 BC. In 30 BC, the Roman Emperor Augustus set the price of gold at 45 coins to the pound. Its value has steadily increased since then, reaching a peak of $1,823 an ounce in 2011. It fell to $1,050.60 on Dec. 3, 2015. It began rising after that, reaching a new high of $2,061.50 on August 7, 2020.

When the price of gold shoots up, everyone wonders if they should buy it. Are you a good candidate for buying gold? Only if you have enough money to ride out any ups or downs that could last years. In fact, the higher the price, the riskier this commodity is. You never know when a gold boom will turn into a bust.

People invest in gold for one of three reasons.

For these reasons, gold is often considered a safe-haven investment. But is it really? Gold is the best hedge against a potential stock market crash, according to research done by Trinity College.2 It found that gold prices increased dramatically for 15 days after a crash. Frightened investors panicked, sold their stocks, and bought gold. After the 15 days, gold prices lost value against rebounding stock prices.

For that reason, gold should be included in a well-diversified portfolio. It does protect your investments as a hedge after a stock market crash. But this protection is short-lived.

History of the Gold Standard

The gold standard is when countries tie the value of their currency to gold. They are willing to redeem that currency for its value in gold. The gold standard allowed lightweight paper currency to be used for trade, instead of heavy gold bullion. In addition to making purses, and pockets, lighter, the gold standard allowed global trade.

Gold was first used as a standard in 643 B.C. when the metal was used to create coins. Wealth was defined strictly by the amount of gold you had. Gold as money evolved from coins to paper redeemable by coins to a concept that was only loosely tied to its value in gold.

The gold standard helped create the Great Depression. It was modified after World War II to make the U.S. dollar the de facto world currency. But President Nixon disbanded it in the 1970s.

During the financial crisis in 2008, many longed for a return to the gold standard. It seemed that money had lost all relation to anything concrete. But the very forces that pried America away from the gold standard also meant that a return would prompt massive deflation. It would be enough to throw the global economy into another depression.

Please read this article for more information about our token economics.

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Hoopoe is a decentralized community backed deflationary finance protocol which gives Ethereum gold to Hoop token holders as a staking rewards

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