- AABBG is a 100% gold-backed token supported by a minimum of 0.1 g of the gold spot price.
- AGX token is backed by silver, looking to turn the commodity into active currency.
- The Venezuelan Petro is oil-backed crypto, that has huge potential to rise in 2021.
Sometimes the pitfalls of cryptocurrencies seem to be larger in number than their benefits. This is especially with regard to the current market situation, where Bitcoin saw a huge drop in value in response to ‘crypto king’ Elon Musk’s comments, consequently lowering most major altcoins’ value.
At a time when market volatility in crypto has started to dissuade investors from trading, a newer, more stable asset is gaining popularity. Aptly named Stablecoins, these are physical asset-backed cryptocurrencies. The most well-known of these is Tether, the crypto tied to the US dollar.
However, further innovation led to an even better technology, one that was also immune to inflationary fears.
Commodity-backed cryptocurrencies are all the rage these days, offering an excellent way to diversify investor portfolios and spread risks. Of these, we’ve picked out the three most promising ones and will discuss them in this article.
The AABB Gold Token
Brought to you by Asia Broadband, Inc., this gold-backed token is unlike any other cryptocurrency. Its vertical integration of mine-to-token gold-backing is unique and ensures that the coin is supported 100% by gold’s value in the market.
AABBG is a hybrid cryptocurrency rather than a complete stablecoin, however, it does have stablecoin qualities such as being supported by a minimum of 0.1 grams gold spot price. The token’s price rises with gold spot price.
AGX Silver Token
The AGX Silver token is run by silver enthusiasts who believe in the commodity’s potential to be considered a true native global currency. The coin is backed by the LODE silver community whose plan is to take the world’s idle silver and turn it into active currency. In fact, silver-holders can exchange their idle physical silver for a LODE token and take regular dividends.
However, in the case of AGX, retail buyers can use it to invest in the underlying value of silver and its future rise-potential, outside of inflationary risks. This token plays on the concept that gold can be the money of kings, but silver is of the people. AGX is likely to find itself a strong spot in the crypto space taken by commodity-backed tokens other than gold.
Launched in 2018 by the Venezuelan government, the Petro cryptocurrency is backed by the strongest commodity making the world work today. Petro gets its value from oil, and emerged as a crypto to leverage Venezuela’s oil wealth into a digital asset that could evade sanctions.
Although the token has struggled previously, 2021’s market unpredictability poses for it a huge opportunity to make a comeback.