If you have been following the stock market recently then you will know that cryptocurrencies and inflations are at the top of your mind. Will there be a constant increase in the consumer prices? Will the crypto prices tank once again? Gold backed crypto projects are a method to combine with a shield against inflation. In other words, they are the method that will allow us to benefit from the precious metal while still paddling in all things crypto. It is being believed by the crypto analysts that there is an increasing appeal of this sector in the crypto world. According to an analysts,
“Commodity-backed cryptos make a ton of sense in the Crypto Revolution. Basically, if enough commodity-backed cryptos exist, then we should be able to create accessibility to commodities trading through decentralized exchanges. For institutional investors, this is a good way to bypass regulations set forth by various parties like the SEC. Add in the recent inflation fears, and you have a cocktail that could lead to a nice boom in commodity-backed cryptos in the current environment.”
3 Gold Backed Crypto Projects
We are already six months into this year and the crypto market has been on a shaky ride. Record highs have been hit by mostly the top 10 cryptocurrencies based on their market cap that is followed by massive pullbacks of more than 50%.
In this more soothing scene of old school finance, gold has been doing what it always does: quietly increasing its value while everybody else goes crazy. In this reference, it is easy to witness why gold backed crypto projects are receiving such popularity. Instead of worrying about the physical properties of gold, you can buy the best gold backed crypto 2021. In some cases, you can also redeem the token in-place of actual gold. Here is a gold backed cryptocurrency list for 2021.
Tether Gold (XAUT – USD)
Tether might be renowned for its U.S dollar stablecoins, but to grab the attention of the investors, Tether Gold is also worthy. The Tether Gold token was initiated in 2020 and is one of the widely used gold stabilized currencies that are presently available.
Tether Gold wishes to harness the potential of converting the gold to any fiat currency across the globe. It also aims to eliminate the issue of moving the physical gold for real. According to the Tether Gold White Paper to stay protected from financial instability, cases like inclusion in a portfolio can be utilized.
Just like USDT, the value of XAUT is secured by a physical vault that contains the underlying assets of Tether Gold. Tether keeps hold on a US dollar for every USTD token that is in circulation. Likely, every XAUT gets backing from its own ounce of gold.
PAX Gold (PAXG – USD)
PAX Gold is another gold backed crypto project that supports a well known stablecoins. This token is the result of Charles Cascarilla who is the founder of Paxos Standard, another token that has been tied to the US dollar.
PAXG can be the first gold backed stablecoin to exist. This crypto was launched in 2019 and is one of the most famous gold backed crypto along with Tether Gold. This token can be purchased on some of the big digital currency exchanges around the globe. It is a gold backed cryptocurrency on Binance, Kraken, and Uniswap. This currency is also benefited from created completely on the Ethereum network that implies that it is standardized by the ERC 20 token model and hence can be sold on many exchanges.
Asia Broadband (AABB)
Asia Broadband is a very famous, speculative game in the mining industry. It is also behind one of the latest gold backed crypto projects. AABB is a company that is well known for rebranding. Pivoting from education to digital media to mining. Presently the company initiated its move into the digital currency world. The company is currently combining its mining business to whip up a gold backed crypto.
This token is being supported by the company with their own gold mines that are situated in Asia and in Mexico. It is already witnessing success with investors trading $1 million of AABB since the time of spring. Unlike the previous coin, AABB is not exactly a stablecoins. This token shows one tenth of a gram of gold in place of a full ounce. This is what makes it cheaper.
There is a famous saying “All the glitters is not gold”. But in the digital era this sentiment has been altered. Non shining digital gold is here that will allow the investors to partake in the centuries old protection that can never go out of fashion.
Some gold backed crypto projects are more tempting than others, but this type of investment in crypto should be at the top of the list for those holders who want to remain in the market but with fewer fluctuations.
Frequently Asked Questions On Gold Backed Crypto Projects
The cryptos that are linked to gold include Tether Gold, PAX Gold, and Asia Broadband.
There are many exchanges where you can buy gold backed cryptos like Binance, Coinbase, Kraken, Uniswap, etc.