In the wake of FTX’s collapse, investors are looking for dependable assets and many are turning to gold-backed crypto tokens, which seem to be making news by outperforming other tokens in the current market pullback.
Since last Friday, the yellow metal is on an uptick, climbing from a low of $1,628.40 to a high of $1,766.92 in trading with a gain of 8.51% over seven days. The price of Pax Gold (PAXG) rose from $1,624.93 to a high of $1,767.30, largely tracking the price of physical gold. PAX is a digital asset and a gold stable coin issued by Paxos.
Each (PAXG) token is backed by one fine troy ounce of a 400 Oz London Good Delivery gold bar, stored in Brink’s vaults. The same is the case with the gold-backed token KGLD, offered by Kitco, which had a price surge with the rising value of the precious metal offering digital capabilities of gold investment using blockchain technology.
With the FTX scam becoming complex, analysts are predicting more downside despite Friday’s Chapter 11 bankruptcy filing by the embattled exchange. Gold is shining in crypto and the traditional markets to assuage investors. Among the cryptos facing an onslaught, there is Polygon (MATIC) benefiting from new ecosystem announcements.
Last week, Instagram’s parent company Meta announced a partnership with the Polygon network to let users mint non-fungible tokens (NFTs). Polygon also sewed a partnership with Disney to develop a proof of concept for exclusive digital collectibles. Data shows the token is currently trading at $1.03 has jumped 23% since November 2.
