Working Principles of XAUT
XAUT Coin:
Owner: XAUT is a cryptocurrency token representing ownership of physical gold. It is owned and operated by Tether Limited, the same company that owns and operates Tether (USDT), a widely used stablecoin. Tether Limited is associated with the Bitfinex cryptocurrency exchange.
Uses: XAUT is a tokenized representation of gold, and its primary use is to provide a digital means of owning and transacting with physical gold. Key uses of XAUT include:
- Digital Gold Ownership: XAUT allows users to own fractions of physical gold stored in secure vaults. Each XAUT token is backed by a certain amount of gold.
- Secure Storage: XAUT tokens represent gold holdings stored in professional vaults, which can be an attractive option for those looking for a secure way to invest in and hold gold.
- Hedging: Some investors use XAUT as a way to hedge against traditional financial markets or as a store of value, similar to how they might use physical gold.
- Transactions: While XAUT is primarily an investment token, it can be used for transactions, particularly in the cryptocurrency space.
Seed Sale: XAUT is not typically sold through traditional seed sales or initial coin offerings (ICOs) like other cryptocurrencies. Instead, XAUT is issued by Tether Limited in exchange for the corresponding amount of physical gold deposited with them. This ensures that each XAUT token is fully backed by physical gold.
Working Principles and Limitations: XAUT is designed to function as a stablecoin backed by physical gold. Some of its working principles and limitations include:
- Backing with Physical Gold: Each XAUT token is backed by a specific amount of physical gold stored in secure vaults. This ensures that the token’s value is tied to the value of gold.
- Stablecoin Properties: XAUT is often used as a stablecoin because it is expected to maintain a relatively stable value compared to other cryptocurrencies, owing to its gold backing.
- Trust and Transparency: The value of XAUT relies on trust in the custodian and the transparency of the gold holdings. Audits and regular reports on gold reserves are critical to maintaining trust.
- Not Fully Decentralized: XAUT is issued and controlled by Tether Limited, which means it doesn’t offer the same degree of decentralization as fully decentralized cryptocurrencies like Bitcoin.
Current Value: The value of XAUT is designed to be approximately equal to the value of the corresponding amount of physical gold. You can check the current value of XAUT by looking it up on cryptocurrency market data websites or by checking with cryptocurrency exchanges that list XAUT trading pairs.
How to Buy and Sell XAUT: To buy and sell XAUT, you can follow these general steps:
- Select an Exchange: Choose a cryptocurrency exchange that lists XAUT. Exchanges like Bitfinex and Kraken are known for offering XAUT trading.
- Create an Account: Sign up for an account on the chosen exchange and complete any necessary identity verification (KYC) procedures.
- Deposit Funds: Deposit funds into your exchange account, typically in the form of other cryptocurrencies or fiat currency.
- Buy XAUT: Place a buy order for XAUT on the exchange, specifying the amount you want to purchase and the price at which you’re willing to buy.
- Secure Storage: If you plan to hold XAUT for an extended period, consider transferring it to a secure cryptocurrency wallet. Some wallets support XAUT.
- Sell XAUT: To sell XAUT, navigate to the trading section of the exchange and place a sell order, specifying the amount and price.
Please note that the exact steps may vary depending on the exchange you use, and it’s important to follow the exchange’s specific instructions for buying and selling XAUT. Always exercise caution and conduct research before engaging in any cryptocurrency trading or investment.
