3 Popular Gold-Backed Crypto Projects in 2021

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Combining the liquidity and decentralization of cryptocurrencies with the financial stability of gold has become a reality through Asia Broadband, Inc.’s AABB AABB Gold token. The company is touting the new cryptocurrency as having the stability quality of a stablecoin with the token price supported by a minimum of 0.1 grams spot price of gold with a current value of $6.09 USD.  

Asia Broadband is a high-margin resource company focused on producing, supplying and selling precious and base metals to primarily Asian markets. The company has focused on the acquisition of highly prospective gold projects in established mining camps in Mexico. The company has $100 million in assets and holds physical gold that back the AABBG 100%, drawn from the company’s mining production segment.

AABBG, which is housed on the Ethereum blockchain, became available in March 2021, selling more than $1 million in its first two weeks of launch. AABBG being backed by gold ensures pricing stability and at the very least, low volatility with the value based on market demand and gold assets.

In September 2021, thanks to the partnership between Core State Holdings Corp. and Asia Broadband, Inc., AABB’s next-level modular digital assets exchange will be available, making AABBG tradeable for other cryptos. The exchange will be capable of implementing various modules, including broker modules, functionality allowing for the issuance of crypto-secured loans, a credit or gift card module and one that connects retail chains.

Once the proprietary exchange is launched, the company believes AABBG will have the same potential for price appreciation as major cryptocurrencies, like Bitcoin, based on market demand combined with the limited supply of tokens in circulation. 

With the rise of gold and the slow descent of Bitcoin, AABBG has become a prime focus for the company. Asia Broadband is betting that as the price of gold slowly increases, so will AABBG, making it ideal for storing investments and making a sale or purchase-related transaction. 

People can purchase AABBG by downloading the AABB Wallet app from the iOS or Android store. You can get more information on the Asia Broadband gold token here.   

We are six months into the year, and the cryptocurrency market has been on a wild ride. Record highs have been hit by most of the top ten cryptos by market cap, followed by huge pullbacks of over 50%.

In the more serene world of old-school finance, gold has been quietly doing what gold always does, watching the fun and slowly increasing in value while everybody else goes crazy. Gold may lack some of the built-in excitement that trading cryptos brings with it, but it’s a historically great bet against inflation, and the price chart is almost always trending in the right direction.

The problem with gold is that owning it can be quite a challenge physically. This can be because of your geographical location or concerns about safely storing it later on. The idea of holding physical gold may appeal, but the reality brings with it several complications.

In this context, it’s easy to see why gold-backed crypto projects are experiencing such a surge in popularity. Instead of worrying about physically holding the gold, you can now purchase crypto-backed gold. In some cases, you may redeem the tokens for actual gold. While in others, you simply trade in and out of the token when it’s time to take profit or buy some more.

With the price of these cryptos tied to that of gold, a large part of the wider crypto market volatility is negated. While the steady growth in the spot price of gold is rewarded in the same way as if you had a vault full of it in your study.

Here’s a quick breakdown of three of the most interesting gold-backed crypto projects in 2021.

Tether Gold (AUXt)

You know that the appetite for gold-backed crypto is real when Tether gets in on the action. More famously known for running the world’s most popular stable coin, which is pegged to USD, Tether Gold was introduced in 2020 and already boasts a market cap of over $160 million.

Tether Gold holds its gold reserves in Swiss vaults, and token holders can exchange their crypto for physical gold or redeem it for cash. Tether Gold holders can identify exactly which bar of gold is theirs by entering the wallet address which holds their AUXt. And one token of Tether Gold equates to one troy ounce of gold on one London Good Delivery bar.

One of the big problems with Tether Gold is that it is not currently available to trade on many exchanges. The entry point of Tether Gold is also beyond the budget of most regular traders, with a minimum purchase amount of 50 XAUt, or about $93,000 at the time of writing.

The AABB Gold Token (AABBG)

The AABB Gold Token is one of the newcomers to the gold-backed crypto sphere, and it is of particular interest for several reasons. First, a unique aspect of AABBG is its vertical integration of Mine-to-Token gold-backing. This is unlike any of the other gold-backed cryptos as it means AABB holds verifiable physical gold assets that back the AABBG token 100% from the company’s mining production segment.

As opposed to Tether Gold, the AABBG token is also way more accessible for the average trader. The AABBG token price is given in grams rather than ounces, making this an exciting buying opportunity for investors who may have been scared away by the very high entry points of other gold-backed projects. In addition, AABBG is supported at a minimum of 0.1 grams spot price of gold, meaning that it will rise in price in line with increases in the gold spot price.

Another attractive upside of the AABBG project is that its holding company, Asia Broadband, Inc., is publicly listed on OTC Markets and is experiencing a period of rapid growth. As a result, Asia Broadband, Inc. has caused a lot of buzz amongst recreational traders, and the company’s listed assets of $100 million are a 5x increase on its position of just one year ago.

AABBG is currently available to buy via the AABB Wallet, and the company is in the final testing stages before releasing its proprietary crypto exchange. Once the AABB Exchange goes live, the AABBG token will become much more than just a gold-pegged crypto. Instead, AABBG will have the same potential for price appreciation as other major cryptocurrencies, like Bitcoin, based on market demand and the limited supply of tokens in circulation.

With a significant market pullback already taken place this year, AABBG looks well-positioned to ride the coattails of the next crypto surge in the second half of 2021. Users can purchase the tokens by downloading the AABB Wallet on the iOS and Android app stores.

Perth Mint Gold Token (PMGT)

A government-backed project will always draw the attention of savvy but cautious investors, and this is precisely what you get with the Perth Mint Gold Token. One of the older gold-backed crypto projects, PMGT, has been on the scene since 2018, and in 2021 it will look to capitalize on the shift that has seen many investors scared away by the high volatility of the crypto market this year.

With its government backing, PMGT’s gold is validated by the Australian government, which will attest to both the weight and purity of the gold that token holders own. Perth Mint Gold token holders are given certificates to prove their holdings, and certificates are backed to PMGT tokens at a ratio of 1:1.

An upside of the Perth Mint Gold project is its claim that this is a cost-effective way to enter the world of gold. The Australian government fully backs your gold, but holders do not need to worry about the traditional additional costs associated with holding gold, such as insurance, custody, and storage.

The PMGT project is one of the most popular gold-backed projects on the market, but investors should be aware of a few caveats before taking the plunge. First, similar to Tether Gold, PMGT is not widely available on recognized exchanges. In fact, it is not listed on any of the world’s most popular exchanges. And another potential red flag is that while PMGT states that holders can redeem tokens for physical gold, there is no figure available on how many tokens an investor must hold to exchange for physical gold.

Final Thoughts

All that glitters is not gold goes the old saying. But, in the digital age, this sentiment has been turned on its head. Non-glittering digital gold is here to enable investors to partake in the centuries-old hedge that will never go out of fashion.

Some gold-backed crypto projects are more enticing than others, but this form of crypto investment should be at the top of the list of all those token holders who want to play the market with a little less volatility.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.