Is Tether Gold Really Gold-Backed?
Credibility analysis: XAUt is about as credible as USDT…
Which is to say, not credible. Tether who operates a massive, well-known stablecoin fraud that financial regulators don’t care to shut down, so they decided to get into the fake digital gold business.
Tether Gold waves the same conspicuous red flag that most fraudulent digital gold projects do, no 3rd party audits of their gold reserves. Their website features a Gold Allocation Lookup, as you can see, this provides no information verifying actual gold reserves it just cross-references XAUt wallets on the Ethereum blockchain.
A reading of the Tether Gold whitepaper makes it pretty clear that XAUt is dubious digital gold — from the Risk Factors section of their whitepaper:
Purchasing the XAUt tokens entails risks and purchasers could lose their entire purchase amount or all of their XAUt tokens…
And it clarifies earlier…
XAUt tokens are speculative and involve a high degree of risk and uncertainty.
Their terms of service clarify that You must hold one full bar of gold worth of tokens to request redemption. A full 430-ounce gold bar worth of XAUt, so over $700,000 worth of the cryptocurrency! And apparently, you have to go to the vault in Switzerland to actually take ownership. They won’t ship “your gold” to you.
The information about Tether Gold online is scant, and their social media has been inactive since 2020, another red flag. They have never mentioned XAUt on Tether’s main Facebook page, which is odd. Although, they did post a photo on social media of “their gold bars” — this is pretty easy to fake — but it’s more than other digital gold scams do.
I couldn’t find much in the way of reviews, positive or negative of Tether Gold. I could find nothing on Tether Gold’s DBA TG Commodities Limited — a company of the same name is registered in London, England but it’s been around since the late ‘90s.
About Tether Gold
Tether Gold (Gold) is a digital asset offered by TG Commodities Limited. One full XAUt token represents one troy fine ounce of gold on a London Good Delivery bar.
The XAUt token can be transferred to any on-chain address from the purchasers’ Tether wallet where it is issued after purchase. Specific gold bar(s) will be associated with each on-chain address where Tether Gold is held.
From Gold.Tether.to
