Is Tether Gold (XAU₮) The Best Way To Hold Gold?February 1, 2020
- Tether Gold (XAU₮) has started big
- Tether Gold on Ethereum and Tron Networks
- Skeptics about Tether Gold
Tether Gold is a new introduction from Tether. The purpose of introducing this product was to have a cryptocurrency backed by gold. Thus facilitating a safe haven asset, which will gain value with time.
Tether tweeted: “In response to the growing demand for digital exposure to physical gold, we are proud to announce the launch of TetherGold (XAU₮)!” Further tweeted: “Tether Gold, the digital asset pegged to physical gold is officially live! Find full details about the only product among the competition that offers zero custody fees and has direct control over the physical gold storage.”
As the token is pegged to physical gold (XAU₮), it facilitates the security of the digital asset. As it is pegged to physical gold, it feels safe. The token with symbol (XAU₮) is currently available in Bitfinex. There are several other coins pegged to gold. However, since Tether is widely used and reputed, this coin is expected to gain adoption quickly.
tethergold (@tethergold) on January 24, 2020, tweeted: “Tether Gold (XAU₮) has started big!
XAU₮ can now be traded on @Bitfinex with U.S. Dollar (XAU₮/USD), #tether (XAU₮/USDt), and #bitcoin (XAU₮/BTC).”
Sydney Ifergan, the Crypto Expert, tweeted: “There is nothing called too much gold. So, it does not matter if several other stable coins are already pegged to gold. (XAU₮) simply adds to be the best of it, for we already know Tether.”
Tether Gold on Ethereum and Tron Networks
The token is built on Ethereum and Tron Networks. There is a necessity for gold-backed tokens because, at a point in time, investors might want to invest in tokens that have a gold back up. Gold generally wins over preferences. This could mainly be the case if an economic meltdown occurs. Most of the doom and gloom scenarios tend to ask for the gold back up, and the demand for such assets grow at such times.
Will Tether Gold be genuinely backed by gold as it is widely known that Tether does have not sufficient fiat back up for its USD. They believe, the same might be the case with Tether Gold.
Tether Gold Skeptics
Several investors are not entirely sure that Tether will be backed by true gold. They tend to reinstate on the widely required concept in the cryptocurrency space of: “Don’t trust, verify.”
They also recollect several previous gold-backed offers that have been shut down. There is a general question on whether Tether gold will be subject to scrutiny by the SEC. If all of such concerns are clarified, Tether Gold will sure serve as an excellent save haven. It is good because it is one of the many increasing choices. Investors are happy to choose from many choices; however, if this will be their favorite is something that time will unveil.