Three prominent cryptocurrency investors have collectively invested approximately $18.94 million in the gold-backed token XAUT, coinciding with gold prices surpassing $5,000 per ounce. According to NS3.AI, these investors converted various cryptocurrencies such as USDC, WBTC, stETH, and USDT into XAUT and PAXG tokens. Both XAUT and PAXG are digital tokens pegged to gold, with their values aligned to global gold standards, allowing investors to benefit from gold price fluctuations without directly investing in physical gold. These gold-backed tokens are particularly favored by investors seeking to protect their portfolios from the volatility of the crypto market.
This significant investment trend indicates a growing focus on traditional assets amid increasing uncertainty in global financial markets. Gold has long been considered a safe haven, and the emergence of gold-backed digital tokens offers a rapidly gaining digital alternative. Moving forward, such developments suggest that more investors may turn to digital gold tokens, especially as cryptocurrency price volatility continues. However, investors should remain cautious, recognizing that digital token values are influenced by multiple factors and should monitor overall market trends closely.
Source: binance
