Tether Gold, also known by its ticker XAUT, is a cryptocurrency that is unique from other digital assets in one major way – it is backed by physical reserves of gold. In this guide, we’ll take a deeper look at what XAUT coin is, how it works, and whether it has the potential to disrupt the crypto space.
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What is The Purpose of Tether Gold (XAUT) Coin?
The purpose of creating the Tether Gold coin was to introduce a stablecoin that is backed by a tangible asset instead of just being algorithmically pegged to fiat currencies like the US Dollar. Each XAUT token represents ownership of one troy ounce of 24-karat gold located in secured vaults in Switzerland.
This physical gold backing is meant to provide price stability compared to other cryptocurrencies whose values can fluctuate wildly. It also aims to offer investors exposure to gold’s historical role as a store of value during times of economic or geopolitical instability. XAUT essentially functions as a digital version of gold that can be easily traded online.
How Tether Gold (XAUT) Crypto Works?
The basic mechanics behind how XAUT works are quite simple. Tether Limited, the company behind main stablecoin Tether (USDT), mints new XAUT tokens and secures the equivalent amount of physical gold in their vaults. This maintains the 1:1 ratio between each token and one troy ounce of gold.
XAUT exists on both the Ethereum and Tron blockchain networks as an ERC-20 and TRC-20 token respectively. This allows it to be traded, spent, and even earn interest much like other crypto assets. However, what gives XAUT inherent value is the gold reserves backing each token. Transactions are also confirmed much faster than moving physical gold itself.
Does Tether Gold (XAUT) Token Have a Future?
There are valid arguments on both sides regarding whether XAUT can succeed long term. On one hand, being the first major gold-backed cryptocurrency gives it an edge. And gold historically maintains value well, inspiring confidence in XAUT.
However, some concerns linger around Tether’s transparency and the possibility other issuers may launch competing products. If central bank digital currencies take off as expected, they could marginalize private stablecoins like XAUT. And gold is not inherently a great long term store of value either.
Ultimately, if Tether delivers on audits proving reserves match outstanding tokens, and XAUT sees growing adoption, it has real staying power. But more development and mainstream accessibility will be crucial. One thing’s for certain – with EXEcrypto, everyone can now get all the latest crypto news at lightning speed!
When Tether Gold (XAUT) Coin Launched?
Tether first announced their intention to launch a gold-backed cryptocurrency in January 2020. It took several months of product development before XAUT officially launched for public trading on January 24th, 2022. This made it one of the earliest major stablecoins backed by a tangible asset instead of just being algorithmically pegged.
In its first year, XAUT has seen steady trading volume and expansion to additional exchanges like Bitfinex and Gate.io. However, adoption is still dwarfed by Tether’s flagship USDT. More partnerships and innovative use cases may be needed to truly disrupt the stablecoin market. Only time will tell if XAUT can gain significant mainstream traction.
Is Tether Gold (XAUT) Crypto a Scam?
Due to some past controversies around Tether’s banking relationships and lack of transparency, there has been justified skepticism of whether XAUT is genuinely backed by gold reserves as claimed. However, most signs point to it likely not being an outright scam.
Tether is a major company in the cryptocurrency industry that has survived prior regulatory scrutiny. They have also began publishing attestations from engineering firms confirming the physical storage of gold. Additionally, the price of XAUT has remained stable near the spot price of gold, as one would expect from a backed asset.
Of course, some counterparty and audit risks always exist with any centralized issuers. But based on present information, XAUT appears to be operating legitimately and delivering on its core purpose – even if Tether’s past actions rightfully deserve continued monitoring. Time will further strengthen or weaken overall confidence.
Is it Safe to Invest in Tether Gold (XAUT) Token?
As with any investment, there are certain risks involved with putting money into XAUT that potential investors should be aware of:
Counterparty risk: Tether controls the gold reserves, so their long-term viability is important.
Regulatory risk: Crypto regulation remains in flux and could impact XAUT negatively.
Limited upside: Upside may be capped by gold’s slower growth compared to speculative cryptoassets.
Market volatility: XAUT value could still experience volatility due to broader market sentiment shifts.
That said, as one of the first properly gold-backed cryptocurrencies, XAUT does provide inherent value transparency lacking in other stablecoins. If purchased from reputable exchanges like Bitfinex, security protocols also protect holdings. With risk-appropriate investment sizes, XAUT can be a solid portfolio diversifier. Just monitor regulatory/audit developments.
Is Tether Gold (XAUT) Coin Worth It? XAUT Price 2023
In its first full year of trading between 2022-2023, XAUT has consistently held value within a few percentage points of spot gold, showing its stability. The current price of XAUT hovers around $1800-1900 per token.
Volume has grown on major exchanges like Bitfinex, OKX, and Gate.io. Over 240 thousand XAUT are now in circulation. And more merchants accept it for payment every month.
All signs point to XAUT providing dependable gold exposure within the growing cryptocurrency asset class. For investors seeking a stable store of wealth, or businesses hedging currency risk, it serves a valuable purpose.
As gold itself remains a multi-trillion dollar industry, the potential is high for a leading digital version of gold in XAUT. It appears worth consideration as a strong complementary holding within a diversified portfolio. Continue monitoring adoption rates and potential regulations.
Where to Buy Tether Gold (XAUT) Crypto?
Some of the most reputable and popular exchanges where potential investors can purchase XAUT include:
- OKX – One of the largest crypto exchanges with deep liquidity for XAUT. Low fees.
- Bitfinex – Originally founded Tether and lists all their stablecoins including XAUT.
- Gate.io – Well established exchange catering to international traders. Offers XAUT.
Always verify the exchange is properly licensed and uses strong security practices. DYOR thoroughly on any platform before depositing funds. Reputable options above ensure the ability to easily acquire XAUT.
How to Sell Tether Gold (XAUT) Token?
The process for selling XAUT is quite straightforward once the investor holds a balance of tokens on an exchange that supports it:
- Login to your exchange wallet holding XAUT
- Navigate to the XAUT/USDT, BTC or preferred trading pair
- Input how many XAUT tokens to sell at the current market rate
- Review order details and click confirm to sell immediately
- Funds will be deposited into your linked bank/crypto wallet
Alternatively, certain over-the-counter (OTC) brokers may facilitate private XAUT sales. Just know your exchange’s withdrawal limits and processing times beforehand. Also consider any potential tax implications of crypto profits depending on location.
How to Stake Tether Gold (XAUT) Coin?
Staking is the process of passively earning rewards by holding Proof-of-Stake (PoS) blockchain network tokens. While XAUT is a cryptocurrency, staking it does not actually generate more tokens currently. Instead, some exchanges offer annual interest on XAUT holdings similar to a savings account:
Gate.io: Between 3-6% APY paid monthly. Balances must remain for 30 days to keep interest.
Simply hold your purchased XAUT funds on one of these lending platforms to start accruing more tokens over time. Just remember interest rates can vary or be removed at the exchange’s discretion.
How to Mine Tether Gold (XAUT) Crypto?
Unlike other minable cryptocurrencies like Bitcoin, it is not possible to directly mine XAUT tokens through solving computational puzzles or putting resources towards securing its network.
As a centralized stablecoin, XAUT is minted by Tether Limited based on the amount of physical gold they purchase and store in reserves. The total supply increases accordingly to maintain the 1:1 backing ratio. While XAUT allows exposure to gold in the digital world, acquiring it generally involves purchasing through an exchange instead of energy-intensive mining as with native crypto networks.
