Tether Gold

Page Contents

What is Tether Gold (XAUt)?

Many people are skeptics when it comes to cryptocurrencies since they believe crypto won’t hold its value as it’s not pegged to anything physical, that actually has any value. However, there are some digital assets that are pegged to something physical, such as gold.

Numerous cryptocurrencies have come and gone over the years and there are currently more than 150 that are gold-pegged. Among these, the most prominent cryptos are PAX Gold (PAXG) and Tether Gold (XAUt). These two combined have surpassed $1 billion in market capitalisation during the first quarter of 2022. Surprisingly, compared to the same period the year before, they have seen an increase of 60% which goes to show that the popularity of gold-backed cryptocurrencies has only been growing.

Tether Gold (XAUt) is a digital asset available as an ERC-20 token on the Ethereum blockchain. One such token represents ownership of one fine troy ounce on a specific gold bar and by purchasing XAUt, the owner will get undivided ownership right to gold on that gold bar, identifiable with a unique serial number, purity and weight. This information can be accessed by the owners at any time through certain websites that are at their disposal. Upon purchasing, the XAUt token is transferred to the owner’s Tether wallet.

Therefore, it is also possible for the holders of Tether Gold to make a withdrawal request. However, in order for the request to be accepted, they have to hold the required minimum number of XAUt, and have completed TG Commodities Limited’s verification process. After their request has been confirmed, the physical gold can either be delivered to a bank of their choice in Switzerland, or the owner can request TG Commodities Ltd. to try and sell it and get the cash proceeds from that sale.

What exactly is a gold-backed cryptocurrency?

Some investors feel more at ease investing in gold-backed digital assets because of their tangible foundation. Since gold has a longer history than cryptocurrencies, some investors feel safer and believe that the price swings of a cryptocurrency with gold backing can be better understood than those of a cryptocurrency without gold backing.

It’s important to mention that investing in gold-backed crypto and having huge expectations will probably end up in disappointment because the cryptocurrency backed by gold is ultimately tracking the price of gold itself. Each crypto of this type is backed by a precisely determined number of troy ounces of gold and thus should never deviate from its price. As long as the price of this precious metal does not increase drastically, the price of your gold-backed crypto won’t either.

Because of this, XAUt and other gold-backed cryptocurrencies are closer to being stablecoins, than regular cryptocurrencies. The stagnation in their price can be seen as a safe haven for investors because they will never be susceptible to bull or bear markets that frequently hit other cryptocurrencies.

Similar posts

cryptocurrency betting
tether.bet

Cryptocurrency betting tips for beginners

Cryptocurrency betting has become increasingly popular in recent years and ifyou’re new to the world of cryptocurrency betting, however, it can be a little intimidating. Here are some tips to help you get started!

Read More »
Gamble with crypto
tether.bet

5 reasons why everyone should gamble with crypto

From its very beginning, crypto has proved wrong to all who thought it was only a passing trend because in 2023 we can clearly see that cryptocurrencies are here to stay. Paying with crypto turned out to be extremely convenient and as a result, it became the favourite payment method of experienced punters.

Read More »
Tether Gold
tether.bet

What is Tether Gold (XAUt)?

Tether Gold (XAUt) is a digital asset available as an ERC-20 token on the Ethereum blockchain. One such token represents ownership of one fine troy ounce on a specific gold bar which is identifiable with a unique serial number, purity and weight.

Read More »