In times of economic uncertainty and rising inflation, more investors are seeking a 'safe haven' — reliable assets tied to tangible value. One such solution has been gold-backed cryptocurrencies. They combine the stability of the precious metal with the convenience of digital technologies. But how reliable is this? Let's find out.
💰 Major representatives of 'gold' tokens:
1. PAX Gold (PAXG)
: 1 PAXG = 1 troy ounce of gold (≈31.1 g)
Regulation: Paxos Trust Company is regulated by the New York Department of Financial Services (NYDFS)
Storage: London, certified Brink’s storage
Advantages:
High level of trust
Gold redemption option
Low fees compared to traditional gold purchases
Exchanges: Binance, Kraken, Bitget, etc.
2. Tether Gold (XAUT)
Peg: 1 XAUT = 1 ounce of gold
Issuer: Tether (creator of USDT)
Storage: Switzerland
Difference: less transparency compared to PAXG but higher liquidity
Exchanges: OKX, Bitfinex, DeFi protocols
3. AurusGOLD (AWG)
Peg: 1 AWG = 1 gram of gold
Focus: Web3 applications, NFTs, tokenization of jewelry
Storage: physical gold from certified partners
Interesting point: tokens can be exchanged for real bullion through a network of partners.
4. Digix Gold Token (DGX)
(historical example)
Peg: 1 DGX = 1 gram of gold
Status: the project was suspended in 2020 due to low interest and liquidity issues
These tokens allow investors to hold gold in digital form, avoiding the need for physical storage and logistics.
📉 Risk and benefit analysis:
Reliability: Gold is a traditional safe-haven asset in times of crisis
Accessibility: Can be purchased in a few clicks without physical ownership
Mobility: Transfers 24/7 worldwide
Transparency: Often accompanied by audits and blockchain transactions
Risks:
In some countries, tokens may be subject to restrictions
Not all projects publish proof of reserves
Ultimately, gold-backed cryptocurrencies are an interesting hybrid of the traditional and digital worlds. $PAXG
PAXG and XAUT are currently the most reliable and liquid, although they have different approaches to transparency and regulation.