Gold-pegged cryptocurrencies emerge as a stable form of investment
Except for the hype around famous cryptocurrencies like bitcoin, dogecoin, ethereum, and tether, there is no sign of big improvement among others. Although the digital currency sphere is constantly undergoing massive transformation, little do we expect from new cryptocurrencies that crack into the market. This back-to-back uncertain situation is mostly because of the volatility that cryptocurrencies carry. To break the chain, gold-pegged cryptocurrencies emerge as a more stable form of investment.
The price uncertainty in the digital currency sphere is not a new thing. For many years now, bitcoin has been gambling with millions of investors. In May 2021 when bitcoin prices hit a record US$60,000, crypto investors were very happy about the sudden surge. Even new people jumping into the digital currency investment preferred to try their hand on the front-running cryptocurrency. But later, things changed drastically. Bitcoin almost touched a death cross before retaining back to a moderate state. However, at that stage, many were frustrated and wanted to invest in something less volatile than bitcoin. As a result, many opted for USD-pegged and gold-pegged cryptocurrencies.
Gold-pegged cryptocurrencies are more or less like stable coins, backed by physical gold. When a digital token is pegged to the current gold price value, it experiences less volatility compared to other famous cryptocurrencies. Although fiat currency-backed cryptocurrencies are seeing high adoption in the fast-evolving time, gold-pegged cryptocurrencies are also making their own remarkable space among crypto investors. The concept of gold-pegged cryptocurrencies emerged in 2017 when bitcoin stood alongside the gold price. It instigated interest among investors to opt for something as precious and stable as gold. Analytics Insight has listed some famous gold-pegged cryptocurrencies that are tradable on exchanges and/or can be bought directly from the creators.
Top Gold-Pegged Cryptocurrencies to Buy
Perth Mint Gold Token (PMGT)
Perth Mint Gold Token, also known as PMGT, is one of the most-trusted gold-pegged cryptocurrencies in the market. Remarkably, PMGT is officially validated by the Australian government. Created by Western Australia’s Perth Mint, the digital gold is vouched with actual gold blocks and the company also provides digital gold certificates as proof over every buying. Besides, PMGT is famous among investors for its inclusiveness to easy storage, less custody and insurance fees, and competitive and cost-effective alternative.
The Singapore-based company, DigixGlobal, offers DGX tokens. Each DGX coin represents 1 gram of gold that is held in vaults in Canada and Singapore. Remarkably, the gold vaults are completely insured, making DGX one of the safest investment forms. Another advantage of this gold-pegged cryptocurrency is that it is divisible, redeemable, and transferable through merely buying and selling the tokenized representations. The company imposes 1% fees for exchanges and assumes the demurrage fee.
Known for running the world’s most famous stable coin, 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 to trade both virtual gold tokens and physical gold.
AABB Gold Token (AABBG)
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 in the digital web. It verifies physical gold assets that back the AABBD token 100% from the company’s mining production segment.
PAX Gold (PAXG)
Launched by Pax Gold, a trusted American company, PAXG token represents one troy ounce of a London Right Delivery bar of gold. Launched in 2019, PAXG is stored in Brink’s vaults, one of the approved storage facilities of the London Bullion Market Association. The creators of the gold-pegged cryptocurrency created the token to make buying gold and easy, and most importantly, digitized. By buying PAXG, the token owners hold complete ownership of the portion of gold and can also use it for trading purposes.
AurusGOLD, also known as AWG, is a gold-backed token collateralized by, and redeemable for 1 gram of 99.99% gold from LBMA certificate refineries. The sustainable digital gold token can be used as an alternative to unstable fiat currencies or as the earliest way to invest in gold. AWG is minted by gold traders that can arbitrage between the AWG and bullion gold markets, keeping the price of AWG in line with spot fold price.
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