Top 5 Gold-Backed Cryptocurrency of 2020
Valuable metals like gold have always been key assets in the trade market. By the soaring gold rates, the cryptocurrency trade market is changing to gold-backed cryptocurrency tokens. While that idea is relatively new, it has prospects of making cryptocurrency more permanent.
Considering how almost new these innovative alternatives are, many traders may be unsure of where to start. Here are the 5 best gold-backed cryptocurrencies of 2020.
Top 5 Gold-Backed Cryptocurrency of 2020
1. Perth Mint Gold Token (PMGT)
Supported by actual gold blocks from Western Australia’s Perth Mint, PMGT is with the best gold-backed cryptocurrency tokens available. Whatever makes this cryptocurrency valid is that the Australian government guarantees the gold’s weight and purity. This Perth Mint issues digital gold certificates as proof by the GoldPass app.
Those certificates can then back PMGT tokens in a token to certificate ratio of 1:1. Traders can exchange those tokens on platforms such as KuCoin. PMGT is a highly aggressive and cost-effective option to traditional gold assets, e.g., banked gold transfers also gold ETFs since they incur no insurance, custody, and storage charges.
InfiniGold provides real-time verification on the number of actual gold backing the PMGTs related to the number of GoldPass accounts created via the Perth Mint. Traders can completely redeem their PMGT holdings for physical gold even though their liquidity is almost cheap.
2. DigixGlobal (DGX)
Sponsored by DigixGlobal, a Singapore-based company, these tokens have a cost of 1 g of gold per token. Vaults in Singapore and also Canada hold the gold that backs these tokens. As extra security, the Bullion Association fully insures and accredits the vaults that store this gold.
DGX tokens give an efficient way of dividing, redeeming, and transferring actual gold bars through purchasing and trading virtual gold in the form of tokens. The founders of DigixGlobal created the digitization process to normalize the way to gold.
Unlike GoldPass but, DigixGlobal charges traders a 1% fee to trade their tokens for actual gold. DigixGlobal incurs the demurrage fees. e. gold storage costs. With a gold-backed cryptocurrency market cap slightly below $6 million, the exchange of these tokens is very thin.
3. Gold Coin (GLC)
The gold-backed cryptocurrency is fractional, which means one coin is worth a fraction of one gram of gold. As such, that means that the barrier to approach for Gold Coin is incredibly low. This contrasts with some different coins and gold itself, where the buy-in can be rather expensive.
Gold Coin is on the Ethereum blockchain also has been around for years. Onby the ease of approach, mthe stable platform eans this is one of the most more reliable options. You can invest in this incrementally as it increases your trust without breaking the bank right off the bat.
4. Meld Gold
Meld Gold, an Australian tech start-up, has linked hands with a blockchain protocol called Algorand to develop decentralized gold tokens. Through their strong digital platform, Meld Gold plans to revolutionize the buying and selling of gold by integrating it into the modern gold supply chain.
This integration will allow them to deliver almost immediate gold trading and settlement via tokenization. According to this platform’s creators, investors will be ready to transact in virtual gold tokens and physical gold. Some potential benefits of this platform involve enhanced accessibility, efficiency, and transparency of transactions.
5. Tether Gold (XAUT)
Tether, the biggest issuer of USD-backed stablecoin, now has a gold-backed token called XAUT. Formally provided by TG Commodities Ltd, all of Tether’s tokens represent only a troy ounce of gold on one London Good Delivery bar from gold.
Tether holds its gold stocks in Swiss vaults and provides the token holders to search for their special gold bars’ serial numbers on the company website. Investors can claim Tether to deliver their gold physically or redeem it for cash.
XAUT tokens reside on blockchains so as Ethereum and TRON. The modern market capitalization of XAUT is approximately $50 million.