GoldX is a tokenized stablecoin where each token is backed by a real-world representation of gold. A stablecoin is an asset that offers price stability characteristics, which makes it suitable for certain functions, such as a: medium of exchange, unit of account, and a store of value.
There are three main models of stablecoins, these include: IOU issuance model, cryptoasset-collateralized model and seigniorage shares model. GoldX would be considered as having an IOU issuance model as each token issued represents a claim to the underlying assets that are stored in a bank account or vault; the underlying asset in this case being gold.
Tether is a well-known stablecoin that also adopts the IOU issuance model, with each tether being issued being equivalent to 1 USD – this USD is then stored in a bank account that is regularly audited.
GoldX Charts
The GoldX stablecoin gives crypto-investors exposure to gold as an asset class without having to go through the cumbersome process of purchasing real gold and storing it. The tokenized GoldX charts allows an investor to then track the real-time performance of their investment
Above is a GoldX chart that represent the current real-time price of an ounce of gold, measured in USD. As can be seen, the chart takes the form of a candle stick which makes it simple to see whether the price finished up or down each day.
In order to read a GoldX Chart:
- O means Open – This tells you the price that gold started trading at when the trading day began, which in this cas was $1492.27.
- C means Close – This tells you the price that gold ended the trading day at, which in this case is $1487.68.
- H means High – This tells you the highest price point gold reached during the trading day, which in this was was $1494.51.
- L means Low – This tell you the lowest price point gold reached during the trading day, which in this case was $1483.58.
A candle will be green if throughout the trading day, the closing price finishes at a higher price point than the opening price. Conversely, a candle will be red if the closing price finishes at a lower price point than the opening price.
Why Invest in GoldX
The purposes of stablecoins like GoldX is to provide investors with a safe haven when investing in cryptocurrencies like Bitcoin and Ethereum. These digital assets are ineffective at being a unit of account or store of value because of the considerable price volatility that they can be subjected to. This can make adoption difficult, because actors such as businesses will not want to be exposed to extreme levels of currency risk when processing transactions. Furthermore, adoption from a consumer standpoint is also challenging, because of concerns that exist with regard to fluctuations in purchasing power. Stablecoins present themselves as being a price-stable solution in an otherwise volatile environment.
Besides being used as a store of value or unit of account, stablecoins also present a great way for investors to diversify their investments. GoldX for example provides crypto-investors with an exposure to gold, which is an effective starting point for building up a portfolio of uncorrelated assets.
Conclusion
To conclude, GoldX is a tokenized stablecoin the adopts to IOU issuance model where each token issued represents a claim to an underlying asset, which in this case is gold.
GoldX charts provide a mechanism for invests to track the performance of their investment in real-time. The chart adopts a candlestick chart pattern that makes it simple to discern how the price performed over the course of the day. A candlestick will be green if the closing price is higher than the opening price, and a candlestick will be red if the closing price is lower than the opening price.
The purpose of stablecoins like GoldX is to provide investors with exposure with a safe haven to store their asset, i.e. store of value, and also to provide exposure to the asset class. This therefore allows crypto-investors to build up a portfolio of diversified uncorrelated assets.
