HomeCryptoWhat are the cryptocurrencies backed by gold?

What are the cryptocurrencies backed by gold?

Some cryptocurrencies are stable coins backed by gold, which means that they have been created in such a way that their price corresponds to that of gold, thus making them oscillate in a way that is proportional to that of the reserve asset par excellence.

There are different types and with different mechanisms ensuring that their price is really fixed to that of gold.

Already available on the market

Some of these tokens are already available on the market.

For example, Digix Gold Tokens (DGX) whose value is backed by physical gold bars, with a ratio of 1 DGX equal to 1 gram of standard gold.

The gold is physically stored in a deposit in Singapore. DGX token holders can also redeem their gold by post or collect it themselves in Singapore.

The direct convertibility of the token into grams of physical gold should be a sufficient guarantee of the stability of its value.

Another stable coin is the OneGram Gold Tokens (OGC), but it is only available on their Huulk exchange. A fun fact about this token is that it conforms to the Islamic Sharia law.

In fact, for the Muslims who adhere to the Shari’ah Law, it is possible to invest only in physical goods, therefore OneGram closes the gap between the crypto-asset and the Muslim world.

The OGC tokens, however, are designed to grow in value (in terms of the relationship with gold), although at the time of issuance each OGC token is anchored to one gram of physical gold stored within the high-security complex of Dubai airport.

ICO

Some gold backed tokens are not yet available on the market, but they will be soon.

There are Ekon (EKG) from Switzerland and Golden Currency (PGCT) from Singapore, both 100% covered by physical gold, then there’s also GoldFinX (GiX) from Singapore, GoldFund (GFUN) from Australia, and Gold Vein Token (CVT) from Russia.

In the ICO phase there are Airgead from Ireland, Cyronium (CYRO) from Indonesia, EAU-Coin (GELT) from Sweden, Goldma (GMA) from Zimbabwe, GramGold Coin (GGC), Jinbi (JNB) and Karatcoin (KCG) from the UK, Kinesis (KAU) from the Cayman Islands, Sudan Gold Coin (SGC) from Dubai U.A.E. and Tiberius Coin (TCX) from Switzerland.

Not backed by gold

There are also a number of tokens already available on the market that have the word gold in their name, but without actually being related to gold.

The best known is Bitcoin Gold (BTG), but there are also GoldCoin (GLD), Gold Bits Coin (GBC), and Unikoin Gold (UKG): a simple check of the variation of their value on CoinMarketCap for example, proves that they are not stable coins.

In addition, there are also tokens that have been presented as stable coins anchored to the value of gold, but whose value instead fluctuates differently.

Some examples are AurumCoin (AU), Darico (DEC), GoldMint (MNTP), HelloGold (HGT), Karatgold Coin (KBC), Pecunio (PCO), Puregold Token (PGT), The Midas Touch Gold (TMTG) and Xaurum (XAUR).

In fact, these cannot be considered stable coins since their value doesn’t follow that of gold.

Marco Cavicchioli
Marco Cavicchioli
Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".
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