Did you know that you can own GOLD and enjoy the flexibility of Cryptocurrencies at the same time?
Dive into this thread for a breakdown on Gold-Backed Cryptocurrencies 👇🧵
Dive into this thread for a breakdown on Gold-Backed Cryptocurrencies 👇🧵
1/ The blend of ancient stability & cutting-edge innovation, gold-backed cryptocurrencies are tokens representing a specific amount of physical gold. Typically minted on #Ethereum, they can be traded just like any other cryptocurrency.
2/ This concept, actualized by a few blockchain companies around 2017, offers several advantages over traditional gold. Highly accessible, divisible & offering seamless transfers – its gold investment revamped for the 21st century!
3/ Besides, the transparency offered by blockchain technology is unmatched. All transactions are logged & visible, presenting a clear trail of each token's journey. But it's not all sunshine; these cryptos come with unique challenges.
4/ One issue is liquidity. Due to their niche status, gold-backed cryptos require higher trading volumes. This can make buying & selling difficult. As these cryptocurrencies gain popularity, liquidity could increase.
5/ Also, they are a departure from the decentralized ethos of cryptocurrencies. They rely on custodians to store & safeguard the gold reserves. This reintroduces intermediaries, adding complexity and potential risk.
6/ But how do we know there's actually gold in the vault? Here's where trust & transparency become crucial. Companies offering these tokens must provide a way for token holders to verify the backing. This is where third-party audits come in.
7/ Now, let's have a look at some of the gold-backed cryptos out there! 👁️
8/ Meet @Paxos Gold $PAXG: the first digital asset to be backed by and redeemable for real gold. Monthly attestations from @WithumCPA ensure total transparency in gold reserves.
9/ @tethergold $XAUt: Beyond being 1:1 gold-backed, it lets you look up the serial number of your gold bar on Tether's website! An immersive gold experience with digital convenience.
10/ @goldcoin $GLC: A 1000:1 backing ratio (GLC:gold ounce) and a fully decentralized vision. Plus, regulated by the NYDFS for added assurance. Gold, but on your terms.
12/ @LODE_one: LODE's AUX Coins aren't just digital gold. $LODE Tokens grant holders regular rewards through $AUX. Earn while you hedge your wealth. A gold-backed yield? Yes, please!
13/ Remember, always verify a company’s claims and audits. Ensure the number of tokens in circulation matches the amount of gold held in reserve. Investments are exciting, but safety first!
14/ Wrapping up, tokenized gold presents a blend of the old & new, with the potential to disrupt traditional gold markets. The stability of physical gold with the power of #blockchain – get ready for a gold rush in the digital age!
Curious to learn more about gold on the blockchain? Read our full report, written by @__Potted, here:
flagship.fyi
Do you hold any gold (on-chain)? Share your thoughts!
flagship.fyi
Do you hold any gold (on-chain)? Share your thoughts!
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