The last few years have seen the creation of blockchain projects that claim to have tokens backed by physical gold. In October, Coinshares and Blockchain.com launched a digital gold token (DGLD) backed by physical gold that uses BTC’s security. Tether just announced a new token called tether gold (XAUT), which will be listed for trading on Bitfinex. The company that created the dominant stablecoin USDT claims a single XAUT token represents one troy fine ounce of gold.
While 30 Gold-Backed Crypto Attempts Have Failed, 77 Existing Blockchain Projects Attempt to Leverage the Precious Metal’s Backing
The narrative that BTC is “digital gold” has been embraced by maximalists in recent years, but despite this people are still creating gold-backed tokens that utilize blockchain technology. There’s a bunch of blockchain networks that claim to leverage physical gold to back certain tokens. For instance, Digixglobal has a token called DGX, which represents 1 gram of 99% LMBA standard gold.
Additionally, there’s also darico (DEC), blocknote (BNO), aurusgold (AWG), cash telex (CTLX), blockstock (BSO), tether gold (XAUT), Coinshares/Blockchain.com MKS (DGLD), g-coin (XGC), goldnugget (GNTO), goldmint (MNTP), goldfund (GFUN), gramgold coin (GGC), pax gold (PAXG), karatgold coin (KBC), and hellogold (HGT).
That list doesn’t even scratch the surface of gold-backed tokens that exist today, as there are a ton more projects that have followed the same path. According to data recorded on January 12, 2020, there are over 30 dead gold crypto projects that have failed over the years. There are also roughly 77 gold-backed blockchain concepts, initial coin offerings (ICO), and gold-backed token projects that exist in the wild today. Read More...