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2 Tokenized Gold Crypto Projects Saw Massive Growth Over the Last 15 Months

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2 Tokenized Gold Crypto Projects Saw Massive Growth Over the Last 15 Months

2 Tokenized Gold Crypto Projects Saw Massive Growth Over the Last 15 Months

15 months ago the price of one ounce of fine gold was $1,790 per ounce and since then, it has increased in value 3.51% to today’s $1,853 per ounce exchange rate. While gold has risen in value, the top two tokenized gold coins have grown significantly since then. Pax gold (PAXG), for instance, has seen its market capitalization grow 407% since February 26, 2021, and Tether’s XAUT market valuation swelled by 248% since that day. Presently, PAXG’s and XAUT’s market capitalizations combined equate to just over $1 billion in value.

Pax Gold

Today, there’s just over $1 billion in tokenized gold coins between the top two gold token blockchain projects. The first project, with the largest market capitalization, is pax gold (PAXG) with its $620 billion valuation. The asset-backed coin called PAXG is an ERC20 token built on Ethereum and a single PAXG equates to one fine troy ounce (t oz) London Good Delivery gold (LBMA).

PAXG is issued by Paxos and owners can redeem PAXG “for LBMA-accredited Good Delivery gold bullion bars” with a minimum redemption amount of 1 t oz. Archive.org statistics indicate that PAXG was the second largest tokenized gold coin at the end of February 2021, with a $122 million market capitalization.

2 Tokenized Gold Crypto Projects Saw Massive Growth Over the Last 15 Months
The top two tokenized gold coins by market capitalization on July 6, 2022.

Today, PAXG holds the number one position in terms of tokenized gold coins by market capitalization and it has grown 407% during the last 15 months. The price of gold has only increased 3.51% since that day from $1,790 to $1,853 per t oz. This means most of PAXG’s growth stems from coins minted into circulation.

On February 26, 2021, PAXG’s valuation was only $122 billion and that day saw $16.9 million in 24 hour global trade volume. PAXG’s $620 billion valuation today saw $11 million in 24-hour global trade volume. PAXG’s most popular trading pair is tether (USDT) as the token captures 69% of all pax gold swaps.

2 Tokenized Gold Crypto Projects Saw Massive Growth Over the Last 15 Months

The tokenized gold coin issued by Paxos has also seen 12.67% of all trades with the stablecoin BUSD, and bitcoin (BTC) is PAXG’s third most traded pair with 12.05% of all trades during the past 24 hours. Other notable PAXG pairs include WETH (3.09%), BNB (1.21%), USD (1.08%), and EUR (0.79%).

The top exchanges recording the most PAXG trading volume include Binance, Kucoin, Crypto.com, Binance USA, Gemini, Bybit, Bithumb Global, FTX and Coinex. While PAXG is now the top tokenized gold coin by market valuation, Tether’s XAUT is not too far behind.

Tether Gold

Everyone knows that Tether issues the stablecoin USDT and it’s widely known the stablecoin is the largest by market capitalization. However, its not commonly known that Tether issues other asset-backed coins that hold the redemption value for a few fiat currencies.

Tether also issues a token called tether gold (XAUT) and currently it is the second largest tokenized gold coin by market capitalization. At the time of writing, XAUT’s overall valuation is $458 million and it has seen $1.45 million in global trade volume during the past 24 hours. Tether’s XAUT website states that a single XAUT is equal to 1 t oz that meets LBMA standards.

2 Tokenized Gold Crypto Projects Saw Massive Growth Over the Last 15 Months

Tether says it offers “multiple redemption options” and notes that “holders of XAUT can make a redemption request in the form of physical gold so long as holders have completed TG Commodities Limited’s verification process and hold the required minimum number of XAUT.”

On February 26, 2021, Tether’s tokenized gold coin XAUT had a market valuation of around $131 million and 24-hour global trade volume that day was $1.6 million. Since then, XAUT’s market valuation grew by 248% to today’s $458 million market cap.

PAXG and XAUT Have a Combined Value of $1 Billion

There are a few more asset-backed tokens that leverage the values and backing of precious metals held in vaults, but PAXG’s and XAUT’s market caps are giants in comparison. The two of them combined are valued at just over $1 billion based on the number of coins issued and the current value of gold.

According to data, there are 333,601 PAXG tokens in circulation today and 246,524 XAUT. In terms of gold’s overall market valuation of $11.795 trillion, PAXG’s and XAUT’s market caps are specks of sand in comparison. Among the crypto economy’s 13,400+ cryptocurrencies, PAXG’s valuation is ranked 86, while XAUT’s market cap is ranked 112.

What do you think about the top gold tokens capturing a market valuation of just over $1 billion and the growth they have seen in 15 months? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Record Investment Outflows of $423 Million Led to Crypto Bloodbath

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Record Investment Outflows of $423 Million Led to Crypto Bloodbath

Last week saw record outflows of $423 million from crypto assets, according to CoinShares.

The report found that the outflows last weekend were likely responsible for bitcoin’s decline to $17,760. Analyst James Butterfill said: “The outflows were solely focussed on bitcoin, which saw net outflows for the week totaling US$453m.”

BTC outflows bring down institutional investments 

Therefore, if bitcoin is removed from the calculations, Ethereum contributed an inflow of around $11 million while other alts also added minor positive flows, aggregating inflows to the extent of $70 million. 

This was Ethereum’s first inflow after 11 consecutive negative sessions according to CoinShares.

In the past week, the BTC market has slid under the $20,000 level twice. Short-bitcoin saw inflows of $15 million due to the launch of the first U.S.-based short investment product in the week in question, the report noted.

[1/5] This week’s Digital Asset Fund Flows Report is now available! Written by @jbutterfill, the headline for this week is: Record US$423m outflows last week while Short-Bitcoin saw inflows of US$15m. Read on for the highlights -> pic.twitter.com/eIalnFhacv

— CoinShares 👩‍🚀 (@CoinSharesCo) June 27, 2022

Benefits of a crypto bear market

Similar wide margins were last seen in the previous negative peak, in terms of outflows, in Jan at $198 million.

However, in relative terms, Butterfill remarked that the week did not witness the largest negative flows against total assets under management (AuM). 

“This record occurred during the bear market in Feb 2018 where outflows representing 1.6% of AuM were witnessed, while the outflows last week were the third largest on record, representing 1.2% of AuM,” the report noted.

According to FTX CEO Sam Bankman-Fried, the Federal Reserve’s decision to aggressively increase interest rates was the main reason behind the market crash.

But despite the bearish sentiments, some crypto bosses are optimistic about the results of a market downturn. Charlie Silver, founder of Permission.io told Insider: ” There are hundreds of firms that are built on hype and not substance. It will be good for the industry to have them go away.”

“Bear markets are healthy because it resets valuations to reality and flushes out the bad actors. There are many cryptos that are true Ponzi schemes, that pay investors only with new investor money. When the new money dries up the project falls apart,” Silver added.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Uzbekistan warms up to Bitcoin mining, but there’s a catch

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Uzbekistan warms up to Bitcoin mining, but there’s a catch

The executive order spares all the mined assets from taxation and bans mining anonymous currencies.

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Uzbekistan warms up to Bitcoin mining, but there’s a catch

The National Agency of Prospective Projects (NAPP) in Uzbekistan announced its demands toward crypto mining operators. It would only allow the companies that use solar energy to mine Bitcoin (BTC) or other cryptocurrencies. 

The normative act on the government page, dated June 24, describes the confirmation of “Guidelines on the registration of the crypto assets mining,” and sets the finalization date on July 9. The second article of the document offers an uncompromising wording:

“Mining is being carried out only by the legal entity with the use of electric energy, provided by a solar photovoltaic power plant.”

As a further complication, the miners should own the solar photovoltaic power plant that they will use for energy.

The executive order also obliges any mining operator to obtain a certificate and register in the national registry of crypto mining companies. This procedure demands a brief list of documents, and should take no more than 20 days from submitting to the final decision to the licensing body. The certificates would be valid for one year after the registration.

Related: Go green or die? Bitcoin miners aim for carbon neutrality by mining near data centers

All the currency generated from mining activities would be spared taxation, though the mining farms would face the special tariffs on the consumed energy set by the Uzbekistan government. But, the trade operations with mined assets would have to be conducted only on the exchange platforms that are registered in Uzbekistan. The mining of anonymous cryptocurrencies would be prohibited.

In April 2022, the freshly-restructured NAPP became Uzbekistan’s exclusive crypto regulator with the mission to adopt a special crypto regulation regime in the country. This move came in a row of initiatives launched by the Uzbekistan President Shavkat Mirziyoyev to provide the regulatory framework for crypto. In September 2018, Mirziyoyev signed a law prohibiting local firms from launching their crypto exchanges in Uzbekistan. The law only offered legal status to crypto exchanges established by foreign legal entities.

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Celsius denies allegations on Alex Mashinsky trying to flee US

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Celsius denies allegations on Alex Mashinsky trying to flee US

Celsius CEO Alex Mashinsky wasn’t trying to leave the U.S. last week but has continued to work on recovering liquidity and operations, the company has claimed.

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Celsius denies allegations on Alex Mashinsky trying to flee US

Troubled crypto lending firm Celsius is putting their best foot forward to recover operations alongside CEO Alex Mashinsky, who currently stays in the United States, the company has claimed.

A spokesperson for Celsius has denied rumors that the company’s CEO tried to flee the U.S. last week amid the ongoing liquidity crisis of the Celsius Network.

The representative told Cointelegraph on Monday that the firm continues working on restoring liquidity, stating:

“All Celsius employees — including our CEO — are focused and hard at work in an effort to stabilize liquidity and operations. To that end, any reports that the Celsius CEO has attempted to leave the U.S. are false.”

Celsius’ statement came shortly after Mike Alfred, co-founder of the crypto analytics firm Digital Assets Data, took to Twitter on Sunday to claim that Mashinsky attempted to leave the country last week via Morristown Airport in New Jersey.

Citing an anonymous source, Alfred alleged that Celsius’s CEO was trying to go to Israel. “Unclear at this moment whether he was arrested or simply barred from leaving,” he added.

Alfred’s claims followed a massive GameStop-like “short squeeze” of Celsius, with Celsius’ native token Celsius (CEL) jumping 300% in one week by June 21. CEL price also abruptly rallied more than 600% on June 14, with analysts attributing the event to an exchange glitch or liquidation of short traders.

At the time of writing, CEL is trading at $0.741, down around 5% over the past 24 hours, according to CoinGecko. Celsius’ native token is still up more than 160% over the past 14 days.

Celsius Network token (CEL) 30-day price chart. Source: CoinGecko

Some industry observers in the crypto community have expressed skepticism about Alfred’s tweets about Mashinsky, with many considering his allegations as FUD.

If @Mashinsky attempted to leave the country this week, why are you reporting it now exactly when the CEL price is going down? Seems very coincidental Mike Alfud. And why no mainstream media or crypto media is reporting this? #CelShortSqueeze https://t.co/ynJbzWib9o

— Otis — #CelShortSqueeze ©️ ⚡️ (@otisa502) June 27, 2022

As previously reported by Cointelegraph, Celsius officially announced that it would be “pausing all withdrawals, swaps and transfers between accounts” on June 13. United States regulators subsequently started an investigation into Celsius as multiple accounts on the network were frozen.

Related: South Korean prosecutors ban Terraform Labs employees from exiting the country: Report

According to some analysts, Celsius’ liquidity issues should be attributed to shortcomings of the existing crypto lending model in general, as other lenders in the market have faced similar problems recently.

Celsius has been working hard to fix the consequences of the platform’s liquidity crisis, reportedly onboarding advisers and restructuring consultants to help the platform handle potential filing for bankruptcy. On June 18, Celsius’ lead investor BnkToTheFuture and its co-founder Simon Dixon offered to assist the network by deploying a recovery plan.

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