What do you think of XAU (derivatives)

[Oshosondy]

I only know of PAXG and XAUT before, but I saw XAU on perpetual derivatives on an exchange yesterday. I searched about the token, it is called gold (derivatives), having supply of 0 which means it is not a coin or a token. It is traded on spot on two exchanges according to Coinmarketcap which are unknown exchanges, but its derivative is traded on many exchanges and well known exchanges are included among.

If this token is traded more on well know exchanges spot market, can you also buy it to diversify your gold tokens? Or do you see it as a very risky token?

I could not get much information about this token because there are gold derivatives which are not about this token. I know what coin derivatives are, but I do not know about this token called XAU (derivatives) if it can be traded in sport market.

This is the gold derivatives
https://coinmarketcap.com/currencies/gold-derivatives/

Although I think the token price may be derived from the price of physical gold and issue as a token, but there is so much limited information about it.

[sergiorus]

XAU is an umbrella ticker for digitalised gold derivatives with no tokenised issuance.

Similarly how XBT on BitMex used to represent a derivative of BTC just for trading.

They are supposed to be just futures without any spot markets so must be either a mistake or some kind of fraud.

[Dr.Bitcoin_Strange]

The XAU is only be traded on derivative and forex, not on spot in any popular exchange that I know, on bybit, what I saw on spot trade is XAUT, I even think it's risky to invest in such a coin or token, just best to speculate on the price and trade the futures, instead of saying I want to buy such a token, I would rather buy physically gold and the diversification. XAU derivative is better.

[Ruttoshi]

I wouldn't buy such token because I want to diversify into gold. I would prefer to buy physical gold because I don't even understand much about XAU.

It's better to put your money on what you have a good knowledge on and not on random tokens irrespective of their derivatives. I am more familiar with XAUT.