A South African Web3 tech company called Momint has turned a collection of rare gold, silver, and bronze coins from the past 130 years into tokens that can’t be exchanged for cash (NFTs).
The Zuid-Afrikaansche Republiek (ZAR) was an independent state in South Africa in the 1800s. These proof coins were made in 1892 and are now worth $1.2 million.
CEO Ahren Posthumus says the coins were part of the first South African rands and were a model for the famous Krugerrand gold coins, which were the country’s first currency and started being made in 1967.
Fractionalization is the process of breaking up a large asset into smaller pieces. In the case of the ZAR set of currencies, each non-fungible token turns a single currency into a large number of fungible crypto tokens. This means that anyone can invest in a single NFT.
Security backed by assets
Posthumus says that NFTs “let us bring this asset-backed stability” to Web3, the next generation of the internet that is based on blockchain technology.
” I mean if you buy a Bored Ape or a JPEG on OpenSea, you know these are just artworks and the only thing giving it value is speculation. However, now you’re buying into something where you actually have a piece of ownership in a real tangible rare mineral set, and that is totally different. That changes the game in terms of your ownership and in the value of the NFT.”
Momint was the main reason why Nelson Mandela’s official arrest warrant NFT was sold for $130,000 in April. Since its start a year ago, the company, which runs an NFT marketplace, has been working hard to find ways to take advantage of the growing popularity of digital artifacts.
A company partners with a South African coin exchange
Momint recently joined forces with the South African Gold Coin Exchange, which is the market leader in gold bullion and numismatics, and The Scoin Shop, which sells the most gold coins in the country. The Momint NFT marketplace is used by the exchange to break up the currencies into tokens that can be traded separately on the site.
Posthumus says that the agreement will make it easier for low-income people in Africa and around the world to invest in gold and other old assets. He said that because the ten ZAR 1892 proof coins had never been used, they were “remarkably well-kept.”
Momint used this to make 1,510 NFTs worth between $200 and $12,000 on the Polygon blockchain. Holders will get a piece of the real coin set and will be able to buy and sell tokens on Momint’s platform.
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