Kinesis: A Cryptocurrency Backed by Gold and Silver


If you are investing into something you do not expect to take in your golden years, then you will be less concerned about its long-term potential value and will be enticed to trade for short-term gains through speculative investing instead.

The Volatility of the Cryptocurrency Market


More and more people are getting interested with cryptocurrencies as they get to hear success stories of people earning big time through investing in such digital assets.


Rather than viewing those as better financial instrument alternatives, cryptocurrencies can just be a speculative investment for someone who has little to no knowledge about the principle behind why blockchain was created in the first place.


In psychologically-driven investments such as cryptocurrency, one’s gains are somebody else’s losses.


And before you knew it, the people who have established a better position will immediately eject their wealth from the system after a successful trade. It is just like a game of riding the huge fluctuations of the cryptocurrency market.


What must be the reason then? Why do people choose to cash out immediately rather than holding for long-term?

Well, we could put all the blame on the high volatility of the market. You could see it gain 100% today and flunk 200% the next day. But if we dig deeper, volatility is just the end result of an unspoken herd mentality for seeing cryptocurrencies with no intrinsic or definite values.


High volatility is one of the very reasons that could hinder the mass adoption and limits the utility of these digital assets as a form of currency.


Sure, there are people who better understand and look after a platform’s essence and fundamentals, but generally, most of the people are just coming in to loot some wealth.


Create a promising platform, release tokens, then poof! Let the people decide the valuation of a certain cryptocurrency.

But what if I’ll tell you that there’s this digital currency that combines blockchain technology with two of the most precious metals which are not arbitrary, namely, gold and silver?

It may be quite unbelievable but there really is a cryptocurrency that aims to have an actual value in the real world through establishing a 1:1 ratio of either gold or silver to a digital coin.


I am talking about Kinesis – a yield-bearing monetary system that is backed by physical gold and silver.

Gold and silver have become two of the most valuable physical commodities ever existed because they are believed to have this significant amount of intrinsic value due to their scarcity. In fact, FIAT money serves as bank notes backed by a certain amount of these bullions.


By integrating physical bullions to the emerging world of cryptocurrency, one will be encouraged to hold these crypto-assets for long-term just like how they will treat bullions in real life.

Kinesis and its system


Kinesis will be the forefront of putting an intrinsic value to a crypto-asset through allocating a 1:1 ratio of physical gold or silver in its primary currencies, KAU (gold) and KAG (silver).

The very concept of the Kinesis System is “minting” or converting physical bullions or fiat currency into Kinesis’ primary currencies, KAU and KAG.


The corresponding number of KAG or KAU will automatically be credited to the minter’s e-wallet. He can either hold it, exchange it to other cryptocurrencies, or use it to purchase goods.


Kinesis’ Monetary System includes the following featured components:


  • Kinesis Currency Exchange (KCX) – where the KAU and KAG currencies are being created and minted. This will serve as the portal of real-world currencies and commodities (ie., gold, silver, fiat money) to the crypto sphere.


  • Kinesis Blockchain Network (KBN) – Kinesis currencies will be transacted in this blockchain network. You can either send, spend, hold, or even trade them depending on the holder’s discretion.


  • Kinesis Blockchain Exchange (KBE) – where Kinesis currencies can be traded with other cryptocurrencies.


  • Kinesis Financial Network (KFN) – this will serve as the Kinesis holder’s mobile e-wallet that can be used in financial transactions such as payment and remittance. Kinesis Master card and Visa debit card is provided and can serve as an ATM for fast real-world transactions.


  • Kinesis Commercial Center (KCC) – a commercial platform of online and offline goods and services which accepts Kinesis currencies as payments.


Kinesis Digital Currency Yield


The people participating in the Kinesis platform either passively or actively will receive yield rewards of the transaction fees depending on their contribution.


  • Minter – the one who purchases Kinesis tokens through submitting bullions or fiat money in KCX will receive a share of transaction fees for the Kinesis currencies they created.


  • Depositor – the users who purchased Kinesis tokens directly on its wallet will receive an incentivized share for their initial deposit and for the use of such coins.


  • Holder – the one who holds Kinesis tokens will have higher incentives of the share of transactions. This will encourage Kinesis users to hold their position and earn passively.


  • Recruiter – the one who promotes and the Kinesis platform will have a fair share of rewards for sharing Kinesis to new users.

The benefits of using Kinesis as a digital currency backed 1:1 by gold or silver


  • Less volatility. As what I am trying to point out the first part of this post, people will be encouraged to hold their Kinesis tokens for long-term just like how they will treat bullions in real life. In return, there will be a lesser amount of wealth that will be extracted shortly from the platform which can make it a stable crypto sphere considering lesser price fluctuations.


  • Will give a great option for people who want to invest in cryptocurrencies but are afraid of risking too much. Cryptocurrency investing is probably the riskiest investment at the present which makes institutional traders and traditional fund managers stay away from it. Some people also believe that cryptocurrencies are just huge bubbles that do not hold intrinsic values. With Kinesis, people will have a better option to invest in crypto that is actually backed by physical valuable assets.


  • Make the bullions’ value more liquid. Gold, silver, and properties are considered illiquid investments. They may rise in value over time but they cannot be turned into cold cash easily. There are still a lot of processes to undergo before turning it into liquid cash. With Kinesis, bullions and property holders will enjoy the liquid form of their physical assets with a reasonable monetary equivalent of it in the market.


  • Earn passively through interest yields than just holding the physical assets in real life. People tend to hoard their physical valuable assets such as gold and silver, keep it in their treasure boxes, and wait for the day to fix a decision to bring it to the market. Holding assets physically for longterm might be a good decision but is definitely not the wisest thing to do. Instead of risking those treasure to thieves, people will have an option to still get hold of it while earning indefinite interests through minting those in the Kinesis system. This way, they will be able to earn more than what they will gross by just keeping it for themselves.

Why Should We Trust Kinesis?


Participating in the Kinesis platform does not necessarily mean you have to have gold and silver and convert them directly into KAU or KAG. It is just an option, but you can always purchase the minted or the by-product of these physical assets to the Kinesis platform exchange using your fiat money.


Purchasing Kinesis currencies is like purchasing the actual physical bullions instantly but in a more liquid financial state.


But then, skepticisms cannot be completely eliminated. How can we ensure that the Kinesis platform is really backing the Kinesis currencies to their respective physical equivalents?


It will always boil down to trust issues knowing that cryptocurrencies are decentralized in nature.


Well, here’s the answer to that.


Kinesis partners with traditional financial institutions in order to guarantee the legitimacy of their platform and at the same time to protect the rights of its users.


Kinesis is greatly associated with ABX – Allocated Bullion Exchange, a world’s leading electronic exchange for physical precious metals.

Allocated Bullion Solutions for Institutions
Such company has established a good reputation for being a central facility that could serve as a third-party auditing and verification system for Kinesis’ currencies.

Use Case

Eugene has been a fan of collecting valuables including precious metals gold and silver. He believes these are great investments that appreciate in value over the years.


But Eugene has one great problem. He poured almost all of his wealth to these bullions that he struggled to keep a significant amount of cash for liquid transactions. He does not want to sell or pawn his precious collections either.


Until Eugene’s friend, Marie, told her about cryptocurrency and shared that she’s particularly investing into Kinesis since she’s a reserved type of crypto investor.


Marie shared how she managed to earn passively by minting her possessed gold to the Kinesis platform.

Eugene was amazed by this idea so he decided to mint a portion of his possessions to the Kinesis Market.


Now, Eugene is able to enjoy earning through active and passive participation in the Kinesis platform and financial liquidity is no longer his problem since he can always purchase products and services through the Kinesis Commercial Center.


On the other hand, Marie was able to enjoy decent rewards by bringing Eugene into the Kinesis platform.

Kinesis Roadmap


Kinesis will be launching the Kinesis Velocity Token (KVT) during its Initial Token Offering (ITO) to raise capital for the launching of the Kinesis Monetary System. Kinesis’ currencies Gold (KAU) and Silver (KAG) is set to begin during its ICO on November 12th, 2018.

You may watch the following videos to know more about the Kinesis Platform:


The Kinesis Monetary system Introduction

The Kinesis Monetary system explained

Other Helpful Information:

Kinesis.Money Website
Kinesis.Money WhitePaper
Kinesis.Money Summary
Kinesis.Money YouTube


Sheila, the author of Pinay Teenvestor, is a civil engineer, a financial literacy advocate, a crypto enthusiast, and an explorer of LEGIT investments both traditional (stocks and crowdfundings) and digital (bitcoin and other cryptocurrencies). She chose the name "Teenvestor" since she strongly believes that establishing a good financial background through investing in early years will greatly contribute to the financial freedom everyone wants to attain in their golden years.