Gold-backed cryptos are digital assets that usually track the price performance of the precious metal gold. Many financial investors withdrew their money from the traditional stock market. They started investing their money in cryptos and gold following the massive market crash in 2020 due to the Covid-19 pandemic. So it makes sense that gold-backed cryptos have become attractive investments to investors.
However, finding reliable gold-backed cryptos can require assessments and efforts to establish reliable gold suppliers. This article lists the top five gold-backed cryptos and all their primary info.
What is gold-backed crypto?
Precious metal like gold has always been a key commodity in the financial market. Gold-backed cryptos are similar to stablecoins pegged to fiat currencies’ value. In this case, the value of gold-backed crypto fluctuates with the value of gold.
Each unit of these coins is worth a particular troy ounce or grams of gold — the amount of gold is backed that should hold in gold reserves. However, the nature of backing varies from one crypto to another. These tokens/cryptos become attractive investments as they eliminate several investing factors in physical gold. That includes volatility, transport transferability, illiquidity, and inconveniences.
The top five gold-backed cryptos to massive profit in 2022
When listing the top five cryptos, it is mandatory to have some research as it is compulsory to check several factors before buying.
- Tether Gold (XAUT)
- Digix Global (DGX)
- Perth Mint Gold Token (PMGT)
- Paxos Gold (PAXG)
- Gold Coin (GLC)
Tether Gold (XAUT)
What is Tether gold?
It is a digital asset that enables investors to direct exposure to physical gold without investing enormous money and avoid drawbacks like limited accessibility and high storage costs. Each token represents one troy ounce (31.10g) gold based on one London Good Delivery gold bar. It is an ERC-20 token that is held on an Ethereum-based wallet.
- Fully diluted market cap: $203,684,755
- Live market cap: $203,860,644
- 24-H volume: $890,991
- Circulating supply: 105,549.09 XAUT
- Max supply: not available
- Total supply: 105,549 XAUT
- Volume / market cap: 0.004363
- Minimum purchase: 50 XAUT
- Current price: $1933.00
- Available exchanges: FTX, BigONE, Gate.io, BTSE, and Uniswap (V3).
How much could you earn for 1 year?
As a holder of XAUT, you can obtain the combined benefits of digital assets and physical golds. Many crypto analysts anticipate the price of XAUT can reach near $3,061.52 by Dec 2022.
Digix Global (DGX)
What is Digix Global?
It is a tokenized version of the physical gold. Each token represents one gram of gold and the foundation period of this token is Dec 2014 in Singapore. Digix platform has two cryptos:
- DigixDAO (DGD)
- Digix Gold (DGX)
- Fully diluted market cap: $2,076,223
- Live market cap: $1,957,238
- 24-H volume: $1,729
- Circulating supply: 54,623.27 DGX
- Max supply: not available
- Total supply: 58,000 DGX
- Volume / market cap: 0.0008702
- Minimum purchase: $50-$600,000 for gold bar, $150 for gold ETF, and $0.50 for the tokens.
- Current price: $35.84
- Available exchanges: KULAP, ProBit Global, Indodax, and Hotbit.
How much could you earn for 1 year?
How much you can earn depend on the capital you can invest in alongside the medium and duration. Many crypto analysts predict the price of DGX might hit near $52.94 within the following year.
Perth Mint Gold Token (PMGT)
What is Perth Mint Gold Token?
It is an ERC-20 token, a tokenized version of the GoldPass certificate. Trovio is the developer and issuer of this token, and each token represents one fine troy ounce of gold stored in the central bank grade vaults of the Perth Mint.
- Fully diluted market cap: $2,251,862
- Live market cap: $2,252,072
- 24-H volume: $3,872
- Circulating supply: 1,157.75 PMGT
- Max supply: not available
- Total supply: 1,158 PMGT
- Volume / market cap: 0.001719
- Minimum purchase: not available
- Current price: $1945.21
How much could you earn for 1 year?
Many crypto analysts anticipate that the price per PMGT might hit nearly $ 2561.86 by Dec 2022. So you can make a considerable amount of profit based on your capital, investment duration, and medium.
Paxos Gold (PAXG)
What is Paxos Gold?
I is a gold-backed crypto, an ERC-20 token that runs on the Ethereum blockchain. The launching period of this token is Sep 2019.
- Fully diluted market cap: $614,343,631
- Live market cap: $614,398,169
- 24-H volume: $12,599,921
- Circulating supply: 318,060.84 PAXG
- Max supply: not available
- Total supply: 318,061 PAXG
- Volume / market cap: 0.02057
- Minimum purchase: $20 or 0.01 PAXG
- Current price: $1931
How much could you earn for 1 year?
Many crypto analysts predict the price per PAXG token might reach near $2,625.82 by Dec 2022.
Gold Coin (GLC)
What is Gold Coin?
It is peer-to-peer crypto pegged with the precious metal gold with a 1:1000 per ounce ratio.
- Fully diluted market cap: $4,934,893
- Live market cap: $2,983,750
- 24-H volume: $3,425
- Circulating supply: 43,681,422.00 GLC
- Max supply: 72,245,700 GLC
- Total supply: 43,953,969 GLC
- Volume / market cap: 0.001156
- Minimum purchase: not available
- Current price: $0.068
How much could you earn for 1 year?
The price of GLC can reach near $0.40 within one year, enabling investors to make a significant profit.
Pros & cons
| Pros | Cons |
| Gold-backed cryptos offer access to various blockchain apps. | Negative carry can come when playing with a large amount of gold. |
| You can sell legitimate gold-backed cryptos for more than the gold spot price. | These assets involve risks like other cryptos. |
| Often it doesn’t require a vast investment to start. | Maintenance of physical gold can be tricky. |
Final thought
In this era of technology, it becomes easier to invest in any asset like gold-backed crypto. However, before investing in any of these assets, investors must check the relative risk factors to reduce risks on investments.
