What do you think about gold backed stable coin trading?

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What do you think about gold backed stable coin trading?

Tether gold (XAUT) has the highest marketcap. Paxos Gold (PAXG) is the second. XAUT is not having any derivative market except XAUTBTC pair on Bitfinix which is an exchange that I do not like. PAXG is having derivative pair on Bybit, Bitget, Kucoin, Kraken and some other exchanges.

Gold is not traded during weekends and also during 10 to 11pm daily GMT +1. Gold backed coins are traded all the time, including weekends.

Has anyone traded these gold backed coins on spot and derivative market before? Are they worth it?

Andrew Peters Answered question September 9, 2024
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They are not tokens but accounting settlement tools for the value of gold, so instead of buying $1 pairs of what are known as stablecoins, you are selling Bitcoin for $2300 and in my opinion that is too much.

If you want to diversify, buy gold and Bitcoin, not XAUT or WBTC.

As for trading, gold moves inversely against the dollar, so it is as if you are trading stablecoins but with less liquidity.

Andrew Peters Answered question September 9, 2024
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