August 08, 2007

WebMoney does a gold unit

Dani reports that WebMoney is now doing a DGC or gold based currency.

This is big news for the gold community, as there is currently (I am told) a resurgance of interest in new gold issuers, perhaps on the expectation that e-gold does not survive the meatgrinders, also known as the Federal prosecutors in Washington D.C. (Perhaps as part of their defence strategy, e-gold now run a blog!)

What's different about WebMoney? They had financial cryptography thinkers in at the beginning, it seems, and they are successful. They know how to do this stuff. They did it, and they maintained their innovation base. They are big. They do multiple countries. They quite possibly dwarf any other gold operator in overall size, already. I could run through the checklist for a while, and it looks pretty good. (oh, and they do a downloadable client which does some sort of facsimile of blinded transactions, as presented at EFCE!)

Expect them to take off where e-gold left off, with the exception of the Ponzi based traffic. Big strategic question: will they go green or red on Ponzis?

Posted by iang at August 8, 2007 10:52 AM | TrackBack

Webmoney is a force of nature, growing very rapidly. There gold will certainly gain a wide audience. WMG is now almost added it to Open2Exchange for P2P trading along with e-gold and Pecunix. Check out the trading around the end of August for some action.


Posted by: Mark Herpel at August 8, 2007 05:05 PM


Posted by: Does WebMoney know something the Russian Central Bank does not???? at August 9, 2007 09:31 PM

WebMoney certainly knows something that the Russian Central Bank does not. Their track record evidences that much. When the Russian banking system was going to hell in 1998, WebMoney has outdone all of them. That's when they established themselves as a reliable financial institution.

As for Ponzies, they have a fraud watch forum ("oborona", literally "defenses"), which is rewarding those who report fraud that gets validated later. Various sightings are categorized as either "suspicious" (upon reporting) or "fraud" (after validation), as more becomes known. It's a more-or-less bog standard web-based forum with a few add-ons. But this name-and-shame approach seems to be effective.

Posted by: Daniel A. Nagy at August 10, 2007 09:31 AM
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