Which cryptocurrency is backed by gold? It has been an excellent question for people as cryptocurrency once again became a hot topic in the market. It started when the news broke that it may help people with their financial crisis. Gold-backed cryptocurrency is one of the assets that emerged as a new stable coin in the crypto market. It is a kind of crypto coin where each token is already backed with physical gold. The trend regarding this has been massive, and you could now start digging into which cryptocurrency is backed by gold.
Relativity on CryptoCurrency
Different cryptocurrency exchange platforms have been used by many users like Binance and Coinbase, which topped the list. Cryptocurrencies gave assurance of their supremacy as one of the sources of investment right now. With the token price notch to the latest gold price, it met the demand of people. It is gaining attention, plus there is a lower chance of price change than other Bitcoins or altcoins. Another factor of crypto that attracts investors is its policies. It does not require you to use a third party. It assures you that it is safe to transact wherever you are situated. So, it is essential to know which cryptocurrency is backed by gold for a variety of choices.
Top 5 Gold-Backed CryptoCurrency
As much as the demand and trend of gold-backed cryptocurrency increased, many were still unsure where they should start and which cryptocurrency is backed by gold. There is a long list of Cryptocurrencies in the market, but which is supported by gold? Here are the top five gold-backed cryptos.
Perth Mint Gold Token (PMGT)
It is backed by gold in the Western Australian government’s Perth Mint. The mint has been releasing digital gold certificates through the GoldPass application. With that, the government assures and guarantees the purity and the weight of gold. Perth Mint Gold Tokens were then backed using those certificates. It is on a 1:1 ratio and is traded using ‘exchanges like KuCoin,’ a crypto-asset exchange platform.
PMGT tokens are cost-effective gold assets and are a standard alternative to usual gold products. It has no fees for custody, storage, and insurance. You can validate the amount of gold backing each PMGT token in a moment operated by InfiniGold against the balance of Goldpass accounts issued by Perth Mint. In a short period, the holders could see that their tokens have been 100% backed by gold.
Singapore-based DigiXGlobal backs its tokens. Each token is equivalent to 1 gram of gold stored in the vaults in Canada and Singapore. Its vaults have been fully accredited and insured under Bullion Association. Through buying and selling tokenized digital presentations, DGX tokens can make gold bars divisible, redeemable, and is transferable.
Unlike others, DGX requires a 1% fee to exchange the tokens into physical gold. Furthermore, it also adopts the demurrage fee for the cost of storing the actual gold. It had been known that DigiXGlobal tokens are rarely traded and have only under six million dollars market cap.
Gold Coin (GLC)
It is one of your safest options as it is on the Ethereum blockchain for years, for it is one of the oldest cryptocurrencies launched in 2013. The platform is stable, along with ease of entry. The terms of this gold-backed cryptocurrency are fractional. In every coin, it is worth a fraction of one gram of gold. That means that the entry barrier is shallow. It differs from any other currencies and gold, wherein it can be costly for buy-in. You can invest as it can earn your trust without crashing the bank off the bat.
You can be able to generate GLC through the process of mining. Using the Golden River Algorithm, it reconfigures the difficulty of mining based on the network’s performance. Miners like you can solve problems and mine as much as you want based on the Proof of work method. The algorithm upgrades the issues’ difficulty based on the number of working machines on a particular problem. It prohibits the coins from being minted, and blocks will be added to the blockchains.
Tether Gold (XAUT)
A gold-backed token called XAUT is under the largest issuer of a USD-backed stable coin, Tether. TG Commodities Ltd formally provides each Tether’s token. It represents a single troy ounce of gold on one London Good Delivery gold bar. Tether locates its gold reserves in Swiss vaults. If you are one of its token holders, you can access your bars on the company’s website using the serial numbers of your specific gold bars. Investors of the company can send a request to the company to deliver their gold physically, or you can redeem it for cash.
The XAUT gold-backed cryptocurrency tokens dwell on the TRON (TRX) and Ethereum blockchains. Using Etherscan, which is a block explorer, you could track your transactions. Presently, around 50 million dollars are on XAUT market cap.
Meld Gold is an Australian Start-up that has taken part with a blockchain protocol called Algorand to create decentralized gold tokens. Through integration into the latest gold supply chain, Meld Gold intends to modernize and improve buying and selling gold using their Robust digital platform.
This integration will be a way for them to deliver almost instant gold trading and settlement via tokenization. This platform’s creators designed it to be both in virtual gold tokens and physical gold once you invest with them. Enhanced accessibility, efficiency, and transparency of your transactions are some of the potential benefits you could enjoy with Meld Gold.
Benefits of Cryptocurrency that is Backed by Gold
You can enjoy being able to own gold while avoiding physical gold’s drawbacks, including storage and limited accessibility costs. Unlike the traditional cryptocurrencies, gold-backed crypto is tied with the price of gold and is less volatile. It is better storage of value than other cryptocurrencies and is considered a substantial investment. You can experience an easy way of buying and selling this kind of crypto linked with the blockchains. You need to know which cryptocurrency is backed by gold.
However, gold-backed stable coins are much still a smaller component of the pegged cryptocurrency market. It has a higher entry cost compared to the other cryptocurrencies. It is relatively pricy, but with the right gold-backed cryptocurrency, you can make gold more accessible. USD-backed stable coins are still at the top of the list in the ecosystem. Discover more about cryptocurrency backed by gold here!
You are now familiar with which cryptocurrency is backed by gold and what offers it can give you. There are more on the list, so it is imperative that you do your own research too. It would be best if you started gearing up and searching for it to start investing and earning. Remember that each cryptocurrency is unique and varies in terms and conditions. Be wise and mindful at the same time. Be careful where to put your gold!