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Gold continues to hit new highs, how to invest in gold targets in the crypto market?
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Recently, the volatility of the crypto market has become increasingly uncertain with the changes in the international financial market, and the price trends of mainstream crypto assets such as Bitcoin, Ethereum, and SOL have also fallen into a slump. The market's enthusiasm for crypto trading seems to be moving from optimism to a bearish state. In sharp contrast, the international gold price has been rising all the way to over $3,240 per ounce, constantly setting new historical highs, and the price has once again verified that gold is a safe-haven asset.
In the crypto market, the market value of assets linked to gold has also been rising. On April 11, the market value of tokenized gold assets exceeded US$2 billion. From the perspective of risk hedging, gold-related crypto assets seem to be becoming a new high-quality choice. PANews takes stock of the current exposure to mainstream gold-related transactions in the crypto market.
TetherGold and PAXGold are the two largest varieties in the tokenized gold market. XAUT is issued by Tether, the issuer of USDT. 1XAUT corresponds to the ownership of 1 troy ounce of gold on a specific LBMA-approved good delivery gold bar. Gold is allocated in a designated manner, and holders can query the unique serial number, purity and weight of the gold bar associated with their address through the official website. Tether claims that its reserves 100% support the issued tokens, and XAUT is partially supported by the gold in the reserves. As of April 12, the total support of XAUT is 7,667.7 kilograms of gold, distributed on 644 gold bars, and the market value of XAUT tokens is approximately US$797 million.
Other tokenized gold products with a market value of over 100 million include Quorium and KinesisGold. QGLOD’s business model is rather special. The gold it holds is essentially a gold mine reserve rather than spot gold. In addition, although the project claims to have regular reports on gold reserves, PANews found that these web pages can no longer be opened. Therefore, it is impossible to understand the reserve situation of QGLOD. The information is vague and contradictory, and lacks key details that can be independently verified by a third party. In particular, the concept of undeveloped reserves, how to provide stable support for liquidity tokens, and how to conduct audits and valuations are all unresolved issues, which brings great uncertainty and risks to investors.
At present, the most mainstream way for the crypto market to participate in gold asset exposure may still be to hold mainstream, highly liquid gold tokens such as PAXG or XAUT. In addition, although there are many similar tokenized gold products, due to the identification of issuers and transparency, users may have to consider the security issues involved when choosing these assets. Although buying physical gold directly through traditional precious metal dealers who accept cryptocurrency payments provides the most direct ownership, it is also accompanied by higher thresholds and potential product premium issues. In the field of DeFi, the participation methods of gold assets are still relatively limited, which may also be the problem of the deep integration of most RWA assets with on-chain finance.
