How about XAUT coins? Will XAUT coins affect the gold price?
- Susan SarandonOriginal
- 2025-03-05 15:12:01569browse
Tether Gold (XAUT) Detailed explanation: Gold stablecoins and their impact on gold prices
Tether Gold (XAUT), issued by TG Commodities Limited, is a stablecoin pegged to gold, providing investors with an innovative way to invest in gold. Holders can convert XAUT into physical gold (requires equivalent XAUT), meeting investors' needs to invest in gold using cryptocurrencies.
Will XAUT affect the price of gold?
XAUT itself will not directly affect the gold price. As a token on Ethereum, each XAUT represents 1 ounce of gold. It is just a digital form of gold and has no direct connection with the spot price of gold.
However, XAUT's market performance may indirectly reflect market demand for gold and confidence in the financial market. For example, when markets are turbulent, investors may seek safe-haven assets (such as gold), which will drive up demand for XAUT. XAUT's currency price is also affected by fluctuations in gold prices: gold prices rise, XAUT demand may increase; vice versa.
The advantages and risks of XAUT coins
At present, XAUT performs well (official data shows that the price is US$2134.03, lower than the historical high of US$2203.03, with a market value of US$526 million, and has been launched on 15 exchanges). Its main advantages are:
- Value is linked to gold: Provides relatively stable value and can be used as a safe-haven asset.
- Blockchain technology: Ensure transactions are transparent, secure and traceable.
- Redeem of physical gold: Holders can apply to exchange XAUT for physical gold, deliveries at a designated location in Switzerland, or entrust TG Commodities Limited to sell gold and receive cash.
It should be noted that investors need to complete the verification process of TG Commodities Limited and hold the minimum number of XAUTs before they can redeem. Furthermore, it is crucial to choose a reliable trading platform and manage assets properly. Although XAUT has many advantages, the cryptocurrency market is highly volatile and investors need to invest with caution.
In short, XAUT, as a digital asset linked to gold, has both stability, transparency and convenience. But its price is still affected by market sentiment and gold prices. Investors must carefully evaluate risks when investing in XAUT.
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