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Created page with "'''1mdc''' was a digital gold currency (DGC), founded in 2001. Similar to other DGCs, 1mdc allowed for the instant electronic transfer of gold between user accounts. U..."

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'''1mdc''' was a [[digital gold currency]] (DGC), founded in 2001. Similar to other DGCs, 1mdc allowed for the instant electronic transfer of [[gold]] between user accounts. Unlike other DGC providers, 1mdc was backed by the reserves of [[e-gold]], rather than their own physical bullion reserves.

The website appeared to switch between various offshore hosting locations, and used [[software]] designed by Interesting Software Ltd, an [[Anguilla]] company.

As of April 27, [[2007]], a US court order has forced e-gold to liquidate a large number of e-gold accounts totalling some 10 to 20 million US dollars' worth of gold. A small part of this seizure was 1mdc's accounts and assets [http://www.usdoj.gov/opa/pr/2007/April/07_crm_301.html]. If the court order in the USA is reversed, a user's e-gold grams remaining in 1mdc will "unbail" normally to the user's e-gold account. Ultimately e-gold is owned and operated by US citizens, so, 1mdc users must respect the decisions of US courts and the US authorities regarding the disposition of e-gold and the safety and security of US citizens. Even though 1mdc has no connection whatsoever to the USA, and most 1mdc users are non-USA, ultimately e-gold is operated from the USA.

== Features ==
As with any digital gold currency, one used 1mdc to keep assets away from [[fiat money|fiat currencies]] and avoid inflationary risks associated with them. To open an account, 1mdc required the user to have a functioning [[e-mail address]], an e-gold account, a password, initials and a [[Personal identification number|PIN]].

1mdc charged 0.05 [[gold gram]]s per spend for accounts that receive 100 or more spends (total over 500 [[grams]]) to their account in any given [[calendar]] month. There were no spend fees for accounts that receive 99 or less spends in a calendar month, and no storage fees on all accounts. This was in sharp contrast to e-gold, which charges a storage fee of 1% per annum. Coupled with the quick and easy transfer of funds between e-gold and 1mdc accounts, 1mdc was attractive to persons with large amounts of e-gold, whose balances gradually shrink due to e-gold's storage fees. 1mdc also offered virtually fee free [[exchange]] from [[Pecunix]] gold to 1mdc, and a 5% fee to exchange from 1mdc to Pecunix gold. It was often said that most or all heavy users of e-gold are 1mdc users, although of course there was no way of confirming this.

== Criticisms ==
1mdc's e-gold was held in unallocated (pooled) storage (in several e-gold user accounts) which allowed for extra [[privacy]] from e-gold's administrators. However, this increased storage risk, as the [[client]] had no precedence on the e-gold they entrusted 1mdc to hold, and there was virtually no way for a user to ensure that 1mdc is maintaining full reserves of their e-gold. The amount of e-gold held in the 1mdc system was undisclosed.

Also, since 1mdc was backed by [[e-gold]], [[events]] that affect e-gold also affected 1mdc. Once e-gold Ltd. was instructed by the US government to freeze and liquidate all 1mdc accounts, 1mdc became insolvent by default along with all other e-gold accounts seized in the April 27 action.

==See also==

* [[Bitcoin]]

* [[Blockchain]]

* [[Crypto Blogs List]]

==External links==
* [http://www.1mdc.com/ 1mdc Homepage] (defunct)
* [https://web.archive.org/web/*/http://www.1mdc.com Web archive for 1mdc] (2001–2007)
* [http://indomitus.net/2004status.html#1mdc The Indomitus Report covering 1mdc] (Jan 2005)

==Source==

[http://wikipedia.org/ http://wikipedia.org/]

1mdc - Revision history

Admin: Created page with "'''1mdc''' was a digital gold currency (DGC), founded in 2001. Similar to other DGCs, 1mdc allowed for the instant electronic transfer of gold between user accounts. U..."