RISK AND REGULATION
Last updated
Last updated
The value of GGCM may be influenced by several risks of which are outside of the control of the Project. The value of GGCM may rise or fall, and, consequently, token holders may suffer losses. Prospective token holders should consider whether GGCM is a suitable purchase regarding their objectives, financial position, particular needs, and circumstances. Prospective token holders should also consider and take into account the level of risk with which they are comfortable, the level of returns they require, as well as their frequency and nature. The risk factors referred to in this Whitepaper do not purport to be a complete explanation of the risks involved in purchasing GGCM. Prospective token holders should seek professional legal and tax advice in setting their objectives and strategies before deciding to buy GGCM. The key risks of purchasing GGCM are described below, although prospective token holders should consider all risks. The chances disclosed are not exhaustive. The project will take steps to minimize risk; however, it cannot be guaranteed that all risks can be mitigated or lessened or that purchasing GGC is risk-free.
General Market Risks
The fluctuating value of GGCM is affected by a range of economic and market factors, including market volatility; commodity prices; domestic and international economic conditions; political events, war, natural events, and changes in government, monetary policies, taxation, and laws and regulations. Counterparty Risks Operational risks of the Issuer include the possibility of systems failure, regulatory requirements, documentation risk, fraud, legal risk, and other unforeseen circumstances, which may also have a detrimental impact on the value of GGCM held by a token holder.
TAX Risks
Changes to tax laws and policy (including any changes to those laws as to how GGCM is taxed) might adversely impact the value of GGCM and the return for token holders. It is not possible to predict future changes to tax laws' policies. Taxation liability is the responsibility of each token holder. Coin holders should obtain their taxation advice about their prospective purchase of GGCM.
GGCM Specific Risks
The key risks associated with purchasing GGCM include the following:
VALUE OF GGC RISES AND FALLS
GGCM's interest is issued according to the market value of the underlying assets to which they correspond. The value of these assets will rise and fall over time as the price of gold moves. Ultimately though, the value of GGC should reflect the corresponding price of gold at the time of transaction. The project does not guarantee any particular future price of GGCM.
RISKS OF HACKING AND SECURITY WEAKNESS
Hackers or other malicious groups or organizations may attempt to interfere with the platform or GGCM in various ways, including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing, and spoofing.
RISKS ASSOCIATED WITH MARKETS FOR TOKENS
Suppose third-party exchanges do facilitate the trading of GGCM on their initiative. In that case, such businesses may be relatively new and subject to little or no regulatory oversight, making them more susceptible to fraud or manipulation. Tokens are not legal tender, and to the extent that third parties do ascribe an external exchange value to GGC, such value may be highly volatile and diminish to zero. There is no assurance that a person or company who accepts GGCM as payment today will continue to do so in the future.
REGULATORY RISK
The value of GGCM may be negatively affected by changes to government legislation, regulations, and policies (including taxation laws). The regulatory status of GGCM and distributed ledger technology is unclear or unsettled in many jurisdictions across the globe. It is difficult to predict how or whether regulatory agencies may apply existing laws and regulations concerning technology and its applications, including the platform and GGCM. It is likewise difficult to predict how legislators or regulatory agencies may implement changes to law and regulation affecting distributed ledger technology and its applications, including the platform and GGCM. Residents of certain jurisdictions may not be permitted to sell and purchase cryptocurrencies or digital tokens such as GGCM. Such participation may be illegal in such jurisdictions. Legislation prohibiting or regulating such token sales may be introduced in the jurisdiction of the purchasers or acquirers of GGCM. New or revised legislation, regulations, administrative directives or guidelines issued by regulators, and regulatory actions could negatively impact the platform and GGCM in various ways. Mining Project may cease operations in a jurisdiction if chiffons or changes to law or regulation make it illegal to operate in a jurisdiction or commercially undesirable to obtain the necessary regulatory approval(s) to work in a jurisdiction. Regulators from the jurisdictions in which a purchaser or acquirer of GGCM resides may, after the sale and purchase or acquisition of GGCM, conduct investigations and take regulatory action regarding sale and purchase or addition, or prohibit the secondary sale and purchase or acquisition of GGCM.
IMPORTANT NOTICE
It is important to note that not all risks can be foreseen. Therefore, prospective coin holders should ensure they obtain appropriate professional advice regarding the suitability of GGCM, having regard to their circumstances, their financial situation, and individual needs.