Beware: some "gold" Crypto may not be cast bars
As we know Gold is a safe heaven tool in the financial world, so does cryptocurrency. There is a new gold-backed cryptocurrency named DigAu token. As written in a Bloomberg article New York City real estate mogul Kent Swig has allegedly secured a minimum of $6 billion in gold reserves to back this new cryptocurrency.
The value of the digital token, DIGau, will be pegged to the market price of the precious metal, guaranteed by liens Swig and partner Stephen Braverman’s company, Dignity Gold, secured against mining claims in Nevada and Arizona.
Dignity Coin issuers like Swig and Braverman’s Dignity Gold, parent of DIGau’s issuer, must hold the value of their reserve currency at all times, to assure investors there’s a backstop against the price falling below the fiat currency.
As written on Dignity Gold website, The gold that has been pledged to Dignity Gold, a portion of which is being provided to Dignity Corp., is represented by reserves at several gold and precious metals mines in the United States. Note well: The gold is currently located in tailings and alluvial placer deposits, with extraction intended to begin this year. Dignity Gold holds liens and security interests on these "untapped" mining claims.
The statement is crystal clear that the gold for DIGau token is still not in a gold bar shape, the gold is under the ground and needs a lot of effort and additional cost to obtain the gold, please be cautious for this kind of token and invest wisely. There are still a lot of other gold-backed tokens which have been well established in the market.
At present, the first five leading gold-backed cryptocurrencies are:
Paxos Gold (PAXG)
Perth Mint Gold Token (PMGT)
Digix Global (DGX)
Tether Gold (XAUT)
Meld Gold by Algorand
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