Gold stablecoins: Should you invest in the latest crypto fad?

economictimes.indiatimes.com:

gold stablecoins, are the latest fad among crypto investors given their recent outperformance. Popular crypto tokens in this class are PAX Gold (PAXG) and Tether Gold (XAUT) and are part of the top 300 cryptocurrencies by market capitalization (m-cap). The m-cap of both these tokens has jumped exponentially over the last one year, with the former outperforming the latter. According to some experts, recent tension between Russia and Ukraine, which has increased the bullion's appeal, has also boosted the demand for such tokens.

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What are gold stablecoins?Gold-pegged altcoins are ones pegged to the price of gold. In the case of PAXG, every token is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in Brink’s vaults. Investors can even look up the address and receive a serial number of the physical gold bar that backs their token, said Avinash Shekhar, CEO, ZebPay. «These coins come with benefits such as ease of investment in gold through alternative digital means and no hassles related to storage of physical gold owing to higher security,» he added. Dileep Seinberg, Founder & CEO, Thinkchain said the history of crypto and gold goes back to its initial conception when in 1998 Szabo designed a model for the first decentralised digital currency and named it 'Bit Gold'. «Though it was never implemented, it has been called a 'direct precursor to the Bitcoin architecture'. Such coins are backed by a real asset such as gold and have the potential equal to its growth, which is likely to give them stability,»