Let's talk about backed (and not) Stablecoins - GOLD token 100% backed by gold.

[LbtalkL]

I have read thread here on bitcointalk before some stablecoins have the ability to froze your funds it is quite alarming right? Only DAI doesn't have those rights and the rest of these stablecoins can freeze any accounts, so if you are holding big amounts we need to be careful with these stablecoins.
Don't get offended but in previous years I encountered two or more projects claiming to be backed by gold and end up being scam. I hope digital gold is not one of them. Did anyone know a coin that is backed by gold that is already on the market right now?

[1714305223]

1714305223

[1714305223]

1714305223

[1714305223]

1714305223

[1714305223]

1714305223

[1714305223]

1714305223

[1714305223]

1714305223

[naikturun]

if you say GOLD is part of a stable coin, so how do you call gold itself where it is a commodity that has long been traded by people to benefit and avoid inflation, because the value of gold also fluctuates and will not remain (even though the fluctuations are not as high as crypto).
and other benefits of gold is more liquid than crypto. the rest I think it's the same as crypto which is a commodity 

[Tytanowy Janusz]

if you say GOLD is part of a stable coin, so how do you call gold itself where it is a commodity that has long been traded by people to benefit and avoid inflation, because the value of gold also fluctuates and will not remain (even though the fluctuations are not as high as crypto).
and other benefits of gold is more liquid than crypto. the rest I think it's the same as crypto which is a commodity  

USD value also fluctuates. Especial compared to other currencies. That's why people trade it on forex.

Does this chart shows that for Turkish guy USDT is not stable coin?



USD value changes even compared to USD itself:


Stable coin means that it is backed by other asset and it is stable to that asset. Not that it's value never change.

[betty11]

I love the concept of Digital Gold, had read their whitepaper, they said they have equivalent Gold in the vault in relation to the amount of token issued. This way the price can be well monitored. I just hope this stands true for all time.

[naikturun]

snip

so clearly, nothing is really stable if you say so 

[ATSgrowth]

I would buy Tether gold because it seems like the most trusted gold backed stable coin, even Tether has problems in the past, it is backed by one of the biggest crypto exchange - Bitfinex. Other gold backed stablecoins are just newcomers that promise legitimity and this can´t be trusted.

[Tytanowy Janusz]

so clearly, nothing is really stable if you say so  

According to what i say even a BEP-2 BTCB (BTC backed token) is a stable token because it's price remain stable compared to base product - BTC.

To have really stable coin with stable value you would have to create:
1- some sort of actively managed fund backed by "basket of goods". But this will be extreme inefficient and its annual management cost will most likely exceed the inflation rate.
2- ETP backed by basic materials and products (iron, steel, wheat, gold, oil, copper, natural gas, cotton, corn, sugar, coffee, aluminium and more) - that way you will recive almost inflation/deflation free product which management cost will be acceptable.
3- product not backed by anything but with fixed exchange rate - something like this fund that allows betting on US STOCK volatility (f.e. you earn if volatility will increase) - same thing but allows you to bet on increase/decrease of USD value.

[naikturun]

so clearly, nothing is really stable if you say so  

According to what i say even a BEP-2 BTCB (BTC backed token) is a stable token because it's price remain stable compared to base product - BTC.

To have really stable coin with stable value you would have to create:
1- some sort of actively managed fund backed by "basket of goods". But this will be extreme inefficient and its annual management cost will most likely exceed the inflation rate.
2- ETP backed by basic materials and products (iron, steel, wheat, gold, oil, copper, natural gas, cotton, corn, sugar, coffee, aluminium and more) - that way you will recive almost inflation/deflation free product which management cost will be acceptable.
3- product not backed by anything but with fixed exchange rate - something like this fund that allows betting on US STOCK volatility (f.e. you earn if volatility will increase) - same thing but allows you to bet on increase/decrease of USD value.

I think it will just throw money away, considering that no one does such a thing, people like it when prices go up and down, because they can produce from the difference in value.
because I don't think it needs to be really done, unless there is a certain reason for it.

[wwzsocki]

I love the concept of Digital Gold...they said they have equivalent Gold in the vault in relation to the amount of token issued... I just hope this stands true for all time.

This question was already answered multiple times in this thread, so it is enough to read and we have only two pages as for now  .

Anyways, I will quote my answer one more time, to make it easier for you.

...Digital Gold use https://www.bullionstar.com vaults to store the physical gold which is pegged to the GOLD token.

Each GOLD token is 100% backed by physical gold stored in a secure vault. Amounts of physical gold stored can be verified at any time. The Digital Gold Marketplace guarantees GOLD token's liquidity. An unlimited amount of GOLD can be purchased/redeemed on the Digital Gold Marketplace website instantly 24/7...

Remember to read threads before commenting (especially short once) because normally I put on IGNORE such members who comment like this.

I hope you understand, such comments are annoying for the thread author and show that you haven't read the thread at all because this question was also answered in the opening post.

There is such a good unspoken rule, we read the whole short threads and long once (depending on the length) at least a few first and last pages always.

To be able to take an important part in the discussion, and not to duplicate previously asked and answered questions. I hope you will take this advice seriously.

[wwzsocki]

I would buy Tether gold because it seems like the most trusted gold backed stable coin, even Tether has problems in the past, it is backed by one of the biggest crypto exchange - Bitfinex...

This is exactly what they count for in Tether. They will overtake this still very small market because there is no competition for them. I see such comments as yours overall, all people are happy that Tether launched this new backed with gold stablecoin and that this is really a good and trusted company, so suites great as a guarantee for our money. I am shocked!!!

We all know that they printed billions of dollars from thin air and now there is still ongoing investigation where hundreds of millions of dollars are missing in bank accounts, that should be secured because USDT is (or rather should be) "pegged" to this money. This hall thing is still ongoing, only because courts will not kill them instantly because only customers would be affected with losses, nobody else and we are talking about billions here.

Imagine that this ball is still rolling, only because Bitfinex is not closed yet, they keep printing Tether from the thin air and now expand even more with the tokenized gold product. If there will be such a black time on the market and many will withdraw their USDT to USD or any other currency, believe me, Tether will collapse because there is not enough money in the bank. So simple is that.

Despite everything, I understand that in the end, everybody will choose Tether Gold if will have a choice.

[sorrros]

Probably the biggest player in this game would be Tether GOLD because it is the largest company and with its influence they can easily dominate the market.
But, there are some smaller projects that offers more interesting solutions, for example Anchor token that is backed to global economy growth, so there is a chance of earning some profit in the future.

[wwzsocki]

Probably the biggest player in this game would be Tether GOLD because it is the largest company and with its influence they can easily dominate the market...

Imagine that this ball is still rolling, only because Bitfinex is not closed yet, they keep printing Tether from the thin air and now expand even more with the tokenized gold product. If there will be such a black time on the market and many will exchange their USDT to USD (or any other currency) and withdraw to bank accounts, believe me, this will be the day when Tether collapse because there is not enough money in the bank to afford such massive withdrawals. So simple is that.

There was even lately a special movement created to do a "check the exchanges day" and coins like Tether, how they really stand out and to withdraw for one or a couple of days all the money and coins from exchanges and services as Defi. Of course, it was a total fiasco and nobody heard about it, only a few people.

Now let's try to guess why media and crypto influencers haven't advertised such a great case?
Because such day will end up the crypto market once for all and all crypto prices will fall to zero in no time, believe me. That is why nobody mentioned it.

Despite everything, I understand that in the end, everybody will choose Tether Gold if will have a choice.

[cryptovigi]

@wwzsocki as usually great thread - you managed to encourage a lot of people to discuss.

To have really stable coin with stable value you would have to create:
1- some sort of actively managed fund backed by "basket of goods". But this will be extreme inefficient and its annual management cost will most likely exceed the inflation rate.
2- ETP backed by basic materials and products (iron, steel, wheat, gold, oil, copper, natural gas, cotton, corn, sugar, coffee, aluminium and more) - that way you will recive almost inflation/deflation free product which management cost will be acceptable.
3- product not backed by anything but with fixed exchange rate - something like this fund that allows betting on US STOCK volatility (f.e. you earn if volatility will increase) - same thing but allows you to bet on increase/decrease of USD value.

You are absolutely right although it is hard for me to imagine a technical solution by securing coins with the right amount of products (options on them) from commodity exchanges...
Anyway I think that the name "stablecoin" is misleading. In fact, these coins should not be called "StableCoins" but rather "EquivalentCoins" because it much better reflects their character. Among the examples of coins secured with precious metals, ores, "real" securities, shares and fiat currency, the last is the closest to the name "stable", despite the vulnerability to inflation, deflation or exchange rate fluctuations (although only for people who use a specific fiat currency on a daily basis) - in all other cases these currencies will not be stable but remain risky and exposed to exchange rate fluctuations. Unfortunately, the name "stable" sounds definitely better in terms of marketing and gives a "sense of security" besides, it has already adopted in the crypto world.

[wwzsocki]

... I think that the name "stablecoin" is misleading. In fact, these coins should ... be called ... "EquivalentCoins" because it much better reflects their character. Among the examples of coins secured with precious metals, ores, "real" securities, shares and fiat currency, the last is the closest to the name "stable", despite the vulnerability to inflation, deflation or exchange rate fluctuations... Unfortunately, the name "stable" sounds definitely better in terms of marketing and gives a "sense of security" besides, it has already adopted in the crypto world.

I think you nailed it here.

I am sure that the name"Stablecoin" was carefully chosen by professionals for the first pegged cryptocurrency (Tether) and past perfect for their marketing needs.
Of course, the name "stable" gives the "sense of security" and I am sure, that it was their main goal, which was achieved without any doubts.

There was a need for such an alternative on the crypto market to be able to secure ourselves from volatility but nobody thought that so much money will be printed from the thin for so long.
I just can't understand how Tether was able to do this when SEC and other watchdog institutions are actively scanning the market?

So many projects have already court cases ongoing just after ICO and Tether team was able to print billions of $$$ before somebody even asked for any audits.

@wwzsocki as usually great thread - you managed to encourage a lot of people to discuss.

Thanks for your kind words.

I am always happy when there is a quality discussion and that is why I was missing valuable comments during your last detox   from the forum.