Tether Gold is a newintroduction from Tether. The purpose ofintroducing this product was to have a cryptocurrency backed by gold. Thus facilitating a safe haven asset, whichwill 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 peggedto physical gold (XAU₮), it facilitates the security of the digital asset. As it is pegged to physical gold, it feelssafe. The token with symbol (XAU₮) iscurrently available in Bitfinex. There are several other coins pegged to gold.However, since Tether is widely used and reputed, this coin is expected to gainadoption 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.”
The token is built onEthereum and Tron Networks. There is anecessity for gold-backed tokens because, at a point in time, investors mightwant to invest in tokens that have a gold back up. Gold generally wins over preferences. Thiscould mainly be the case if an economic meltdown occurs. Most of the doom andgloom scenarios tend to ask for the gold back up, and the demand for suchassets grow at such times.
Will Tether Gold begenuinely backed by gold as it is widely known that Tether does have notsufficient fiat back up for its USD. They believe, the same might be the casewith Tether Gold.
Several investors arenot entirely sure that Tether will be backed by true gold. They tend to reinstate on the widely requiredconcept in the cryptocurrency space of: “Don’t trust, verify.”
They also recollectseveral previous gold-backed offers that have been shut down. There is ageneral 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 anexcellent save haven. It is good because it is one of the many increasingchoices. Investors are happy to choosefrom many choices; however, if this will be their favorite is something thattime will unveil.
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