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Gold-backed cryptos often called gold stablecoins, are the latest turn-on among crypto investors given their recent outperformance. Gold-pegged stablecoins do not offer much utility other than a convenient way to invest in gold. Adding that investors who prefer their gold investments to be liquid may prefer such crypto offerings.
When the value of a fiat currency begins to drop, investors often flock to gold-backed crypto to preserve their wealth. This is because the value of gold moves with inflation differently compared to fiat currencies.
As a result, when an economy is experiencing high inflation levels, gold-backed cryptocurrencies can be a wise investment choice.
Known for running the world's most famous stablecoin, Tether has jumped into the gold-pegged cryptocurrency market to drive the next wave of disruptive investment. Tether Gold was introduced in 2020 and has risen to a total market capitalization of US$160 million. With gold reserves in the Swiss vaults, Tether Gold offers various services to exchange their crypto for physical gold or redeem it for cash. Investors can identify their gold by entering the wallet address which holds their AUXt.
An Australian tech start-up, Meta Gold, has partnered with Algorand, a blockchain protocol company to successfully establish a decentralized gold token. Meta Gold can be bought through the company's platform for gold rate. It is integrated into the current gold supply chain, which allows the seller to deliver instant gold trading and settlement via tokenization. One more leniency is that the platform offers users the option to trade both virtual gold tokens and physical gold.
AABBG is one of the recent entries in the gold-pegged cryptocurrency market. Fortunately, the virtual token comes with a handful of disruptive and futuristic advantages. It follows a mine-to-token gold-backing format that ensures the existence of tokens on the digital web. It verifies physical gold assets that back the AABBD token 100% from the company's mining production segment.
Anthem Gold, developed by Anthem Vault Inc., offers tokens that are each backed by one gram of physical gold. The gold is fully insured and securely stored with a nonbank operator. The coin launched in April 2019 and is available on the Anthem Gold Edge Wallet.
Gold Coin is an ERC-20 coin developed by Digital Gold Ltd. The cryptocurrency was built and is maintained by a group of volunteers who believe in the promotion of economic freedom. When holding GLC investors have access to unique features such as two-minute confirmation speeds, making it the fastest transaction of all gold-pegged tokens. GLC also offers an exclusive Goldcoin Wallet for any gold purchased and there are no transaction fees, making it extremely easy for investors to buy and hold their gold.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
