Many front-line investors, even before the recent fall of the market, had turned to precious metals. Now that the price of gold has risen in line with rising demand for it, fans of the precious metal are looking for a digital alternative. In this article we are going to help an essay From the cryptocurrency website, we introduce the top 3 digital currencies that are backed by gold and their prices go up and down with the price of gold.
Gold-backed digital currencies are a stable digital currency (Stablecoin), but unlike Tether and many other stable-coins that are backed by the dollar and other common currencies, they are backed by gold. Gold token issuers place physical and real gold in the treasury of banks and trust companies as much as they generate tokens.
The main advantage of gold-backed tokens is that people can invest in this precious metal without buying real gold. In this way, the risks and problems associated with maintaining and buying and selling real gold are greatly reduced. Because tokens are stored in digital wallets, they can be easily transferred and sold very quickly in specific exchanges.
The top three gold-backed tokens in the digital currency market are:
Tetr, the largest exporter of stable US-backed digital currency, recently launched a gold-backed digital currency token called Tetr Gold with the acronym XAUT. Each of these tokens is backed by an ounce of pure gold Troy from a London Good Delivery gold bar.
Teter Gold reserves are kept in a Swiss treasury, and owners of these tokens can view the serial number of their own gold bars through the Tetr website. Teter also allows its investors to physically deliver their gold or exchange it for cash.
XAUT tokens are moved on the Ethereum and Theron fold blocks. Therefore, these tokens can be stored in the official wallets of Ethereum and Theron. It is also possible to track transactions through transaction tracking sites such as Etherscan.io.
There are currently just under 4,000 XAUT tokens on the market, bringing the market to about $ 6 million. Tetf-operated Bitfinex Exchange is Tetre Gold’s first gold exchange, but it is also set to be offered in large exchanges such as Bainance.
The exporter of PAXG tokens, Paxos, is a trust company based in New York, USA. Each Pax Gold token is backed by an ounce of pure gold Troy from a 400-ounce gold bar in London Delivery, held at Brink’s Treasury.
Although the gold backing of the tokens is in the possession of Pexus, it is wholly owned by the owners of the tokens.
Pexus is required by US law to support these tokens through its mandatory reserve fund. The creators of Pax Gold released this token as an ERC-20 token on the Ethereum Blockchain, so it can be stored in reputable Ethereum wallets. PAXG tokens are traded worldwide and can be exchanged for real gold.
The market value and volume of PAXG tokens at the time of writing is about $ 32 million.
Digix Gold (DGX)
Each DGX token offered by Singapore-based DigixGlobal is backed by one gram of gold in treasuries in Canada and Singapore. The Bullion Association fully insures and validates these treasuries.
DGX tokens, which represent the digitized real gold, make gold bullion divisible, exchangeable, and portable. The makers of Digix Gold tokens have designed this process so that people can access gold digitally.
The amount of the fee for exchanging tokens with physical gold is 1%, and the company collects the demolition fee, which is actually the cost of storing and maintaining gold. The market value of Digix tokens is very low at the time of writing.