Tether Gold (XAUt)

[God Of Thunder]

Buying digital gold online means, I bought the gold and they will hold it for me. What I am holding right now? A wallet with some digital numbers. Isn't it better to have some physical gold than having it digitally?

This is a very good statement and made me think because this concerns our assets and this is a discussion of the topic that I want, an open and more transparent discussion that can be seen by ourselves.
I definitely prefer real gold and store it in a Local Bank to be able to use it or just to save it, so that one day it can be taken out more easily when the price goes up, it's very different from digital gold which I can't even see its physical form.

The logic behind it is too simple. Digital gold is not a decentralized platform. All of those companies that offer to buy digital gold are just some centralized companies that built some trust in the market and people buying from them. No matter which company it is. It could be Tether as well. We can't check if they have the physical gold or not.

Let's say they have sold them all and I live in a different country. I won't be able to catch the company and won't be able to claim my gold. In comparison, If I kept in a bank in my city, I would always be able to take my gold. But if someone want to trade gold, then maybe digital gold is better option for them. But I don't recommend it.

[Peter90]

I'm still interested in discussing the differences between XAUt from Tether and KAU from Kinesis, can you explain in general the differences between these two digital assets??

Hi Iyem
this is the best I can get comparing the two.
Maybe there are mistakes, I have done my best.


1) Kinesis: minimum purchase 0,0001 gram gold
Smallest fraction of KAU = 0,0001 KAU (maybe less, I don't know). 1 KAU = 1 gram gold, so you can start buying 0,0001 gram gold. 1 gram gold today = 64$, so you can start with 0,006$ (maybe less).

Tether Gold: minimum purchase 1,5 kg gold
"As of the date of this whitepaper, to buy XAUt directly from Tether Gold verified users will be required to purchase a minimum of 50 fine troy oz of gold (i.e., 50 XAUt tokens)".
1 ounce (oz) = 31 grams, so 50 oz = 1500 grams 
Your first purchase must be at least 1,5 kilogram gold...
How much $ is 1,5 kg gold?


2) The kinesis blockchain, a fork of the stellar network. Cheap and fast, because KAUs are designed to be used as everyday money, all around the world, tens of thausand of transactions per second.
Kinesis explorer

XAUt run on Ethereum blockchain. Slow and expensive.
XAUt, no blockchain, no explorer
XAUt is just a way to invest in gold. It's impossible to use XAUt in order to buy a coffee at the bar. Too slow and expensive.


3) The Kinesis Exchange, where you can trade gold (KAU) and silver (KAG), the major fiat currencies and the major cryptocurrencies.
Tether Gold, no exchange.


4) KAUs transfer fee = 0,45%, so sending 1 KAU (1 gram of gold, 64$) to your friend will cost you 0,3$
XAUts run on Ethereum.
How much would it cost you today to send 1 gram of gold (64$) using XAUt to your friend?


5) the Indonesian government has checked Kinesis inside out before entering the partnership with them.
Tether Gold, no partnership with no gov.


6) Kinesis minimum redemption = 100 grams
You can ask for redemption of your KAUs = they send to your address your physical gold, minimum 100 grams.
Tether Gold minimum redemption = 13.300 grams
"As of the date of this whitepaper, to redeem XAUt for the physical gold associated with it, the holder must generally have a minimum of 430 XAUt tokens (i.e., 430 fine troy oz of gold)."
1 ounce (oz) = 31 grams
430 oz = 13,3 kilograms

The day you or your family can redeem 13,3 kg of gold, call me.
I will take my bicycle, run to you and merry you on the spot.
No questions asked 


7) If you ask for redemption, Kinesis can deliver your gold all around the world.
Tether Gold deliver only in Switzerland: "Should you ever want to redeem your XAUt tokens for physical gold, you can. We deliver physical gold bars to any address in Switzerland."


8 ) Kinesis, gold and silver.
Tether Gold, only gold.


9) Kinesis, vaults in 13 locations (Dubai, Hong Kong, Istanbul, Vaduz, London, New York, Singapore, Sydney, Toronto, Zurich, Panama City, Batam, Brisbane).
Tether Gold, only Switzerland.


10) Kinesis, yield system.
Holder’s yield: „Earn a passive monthly yield on every single gram of gold and silver for long as you hold your precious metals with kinesis“
Velocity yield: „Be rewarded every time you trade KAU and KAG on the Kinesis Exchange or spend it with your Kinesis card“
Tether Gold, no yields.


11) Kinesis debit card (at the moment only virtual), you can pay with your gold and silver wherever Visa and Mastercard are accepted.
You don’t need a bank account anymore - hello Spasybo 
Tether Gold, no debit card.


12) Kinesis mobile app (never used. I hear it doesn’t work always smooth)
Tether Gold, no app.


13) Kinesis Pay, for businesses and their clients, so they can do business without banks and without fiat - hello again Spasybo! - using only their gold or silver.
Tether Gold, no such feature (because XAUt is not designed to be money. It’s just a way to invest in gold.



You can open an account at kinesis - ... yes... KYC... - and look around. It’s free, no credit cart, no bank account. With your kinesis account you get your referral link so - if you want - you can start referring people, and if you are good at it - I'm not - you get referrer yield. You can chat with their support, I think they have people speaking Turkish and Arabic. And if you want to say Thanks Peter you can use my affiliate link  there are no downsides using it.

[yhiaali3]

This is a very good statement and made me think because this concerns our assets and this is a discussion of the topic that I want, an open and more transparent discussion that can be seen by ourselves.
I definitely prefer real gold and store it in a Local Bank to be able to use it or just to save it, so that one day it can be taken out more easily when the price goes up, it's very different from digital gold which I can't even see its physical form.
There is a very big comparison between real gold and digital gold because I will definitely choose real gold

Yes, of course, real gold is better than digital gold, but in the age of technology you need both. You can keep real gold in a safe place to preserve the value of your money, while you can keep digital gold in your wallet to conduct financial transactions and transfers across borders with ease, while you cannot do that with Real gold.

For example, you cannot take a piece of gold and go to the supermarket to buy some necessities. Real gold is used as a store of value in the long term, but it is not suitable for daily transactions.

[Peter90]

But, I didn't know that Kinesis gets audited every three months. Is it true? I didn't know that.

Q4 2023 Quarterly Audit

Now you do know 

Isn't it better to have some physical gold than having it digitally?

No

1) Your gold at home can be stolen - both by unknown but also unfortunately by known people... Much more difficult in a military grade vault.

2) Gold in vault is insured, your gold at home is not. Gold in vault disappears, insurance company is there. Gold in house disappears, bad luck.

3) Buy/sell premiums of gold coins can be 10, 20... 30% and more, meaning you pay 30% more when you buy and get 30% less when you sell to your gold dealer.
It's called premium, or spread.

4) When you sell your piece of gold don't forget your certificate of authenticity, maybe they don't trust you.

5) Where to you buy/sell? There isn't a gold shop at every corner. It's a big world LB. In some regions of it - think Africa or Asia - it's a long journey to the next gold shop.

6) Your gold shop has an item, 10 grams, 640$. The next bigger item on sale is 30 grams, 2000$.
You want to buy 50$.
You'll buy nothing.

You want to buy 1000$. What do you do? Gold is not cheese. They can't cut an additional slice for you.
You have a 600$ piece of gold and another 2000$ piece. You need only 1000$. You are forced to sell the 2000$ piece.

I could go on & on



You are overlooking the biggest and most evident argument pro gold-backed stablecoins: the piece of gold that you keep at home can't be used as money.

Go to the market and try to buy 3 apples with your piece of gold.
Step in in that taxi and offer to pay with your piece of gold.
The taxi driver will think that it's fake and that you are trolling him.
You want to buy that pair of Nike on Ebay? Try to send your piece of gold to the seller. And don't forget the certificate of authenticity.



You can't say one way is better than the other.
Keeping at home, depositing in the bank, letting it vaulted in Singapore... each case has pro and contra.
That's why they talk about diversification 

[IyemRoker]

-

Understanding from you is so much and complex, I have to read it in detail and continue to check every link you give and almost 1 hour I read it.
This makes me keep thinking critically to understand kinesis. But it seems like I will continue to ask because I have a kinesis in this CoinmarketCap, what happened?
Does Kinesis not have so many trading with a volume of 100,000 USD in 24 hours?

Then in the final paragraph there is the word "KYC", oh my god?
So, this Kinesis application requires KYC for trading KAU and KAG?

[Peter90]

No matter which company it is. It could be Tether as well. We can't check if they have the physical gold or not.

You are right LB

but think about this: money managers, institutional investors, professional investors... they invest in gold held in vaults of companies specialised in precious metals storage. These companies are called custodians - Brinks, Loomit, Malca Amit... - and are worldwide renown (and btw. they are the custodians of Kinesis' assets). Probably these custodians manage also the gold reserves of the Central Bank of your country.


Money managers... institutional investors... pension funds... investment funds... professional investors... wealthy people!
They don't keep the gold they invest in at home... nor in a little room behind their office... nor in the basement of their headquarters... where they could check every day if their metal is there and where they would be sure nobody sells their metal behind their back.

Why?
Do you think they are naive?

[Peter90]

Let's say they have sold them all and I live in a different country. I won't be able to catch the company and won't be able to claim my gold. In comparison, If I kept in a bank in my city, I would always be able to take my gold.

  No

1) if the bank is closed, you can't.
Banking crises? Russia? Asia? Argentina? Cyprus? 2008? ... 
If there is a banking crisis, banks are closed. They have invented a funny expression for that, bank holiday.
Have fun on the street, banging on the doors of your bank.


2)



England, 2007
Each one of these people thought „If I kept in a bank in my city, I would always be able to take my gold“ 



3) If your bank sells your gold you won’t get it back.
After the end of the legal proceedings - years of waiting and praying - you’ll get compensated (if your bank has enough funds).
Same thing with a custodian, like those who store Kinesis' gold stocks (Loomis, Brinks etc.).

These custodian companies don’t have their headquarters in the middle of Himalaya, where one day everybody disappears and on the spot where there was the office now there is only snow.
By the way, we are talking about companies that are 30, 50, 100 years old. Internationally renown companies. Do you think companies like these are willing to go down for selling your metal behind your back?
How rich are you? 




Further: how can you be sure that your gold in your bank is there LB? Are you going to visit your safe box every week?

Why would you trust your bank in holding your gold more than a worldwide trusted company specialised in precious metals storage?

At the end of the day, it is like this: everybody is free to make their choices and trust whom they want to. You trust your bank, I don't.


Btw, do you know about your obligations to disclose what you keep in your safe?
Do you know that that room has cameras?
Do you care about the fact that what is known to your bank is known to the authorities?
Do you know that if you don't pop up for some time your gold becomes property of your bank?

Do you know the provisions that allow your bank to open your safe?

[God Of Thunder]

Risk is thousand time less with the banks than some shitcoins or shit token. The bank holiday does not remain for a whole month. Before you keep your money, you have a couple of choices. You have to check their history and then pick which bank you want to use. Surely you will be able to catch them. The risk of banks does not eliminate the risk of investing in digital gold which I would never be able to see if they shut down their website and remove the trading pairs from the exchanges. I would have nothing to do.

[Wiseman]

XAUt tries to have its price linked to gold, but there is no guarantee that when you buy, there is real gold deposited in the bank vaults. The main trading volumes of bitfinex and the main trading pair are USDT, and trading volumes on all platforms are low compared to stablecoins such as USDT, USDC.
It is very dangerous compared to buying gold, and its price is close to gold, but it is definitely not linked to gold.

I totally agree with you , it doesn't seem very true , but I will point out that it is possible and we don't believe in it because no one has done it yet , let's see how this token will develop and where they get support from and how they provide the price with real gold .

[Peter90]

but there is no guarantee that when you buy, there is real gold deposited in the bank vaults.

... because they don't offer independent audits ...

its price is close to gold, but it is definitely not linked to gold.

Coin price not being 100% linked to gold price is the best proof that that coin is not 100% backed by gold

[IyemRoker]

-

Then in the final paragraph there is the word "KYC", oh my god?
So, this Kinesis application requires KYC for trading KAU and KAG?

Hi Peter, you haven't answered my question regarding KYC, okay I'll repeat it :

-Then in the final paragraph there is the word "KYC", oh my god?
-So, this Kinesis application requires KYC for trading KAU and KAG?

The problem is with KYC and everyone doesn't want their privacy to be disturbed.
Never mind out there, on the altcoinstalks forum there are also many people who don't want to and don't agree with KYC issues.
It seems like KAU and KAG trading will feel hampered if every member who wants to trade has to use KYC. This is only my experience with forum and cryptocurrency space.

[Peter90]

Hi Peter, you haven't answered my question regarding KYC, okay I'll repeat it :

-Then in the final paragraph there is the word "KYC", oh my god?
-So, this Kinesis application requires KYC for trading KAU and KAG?

The problem is with KYC and everyone doesn't want their privacy to be disturbed.
Never mind out there, on the altcoinstalks forum there are also many people who don't want to and don't agree with KYC issues.
It seems like KAU and KAG trading will feel hampered if every member who wants to trade has to use KYC. This is only my experience with forum and cryptocurrency space.

Good morning Iyem,
if you do business with governments and public agencies - like Kinesis does - you must KYC.
For example, the Indonesian gov requested - obviously - KYC as a condition to build their partnership with Kinesis.

But even if a stablecoin company doesn't aim at partnerships with public institutions, if that company wants to get serious and expand globally they will KYC.
Without KYC, authorities can shut you down anytime, banks... credit card and fintech companies... will refuse do to business with you... etc.
Look what is happening in the USA with Operation Choke Point 2.0.

"The verification process at Tether.to is a standardised compliance measure for Anti-Money Laundering (AML), Know Your Customer (KYC), and Counter-Terrorism Financing (CTF) laws and regulations."
Do you think USDT had become what it is if Tether didn't KYC?
A multinational company aiming at expanding their business either adapt to laws and regulations or dies.


Anyway, I understand your point Iyem - I like anonymity too. That's why you don't see KYC verified near my name in my profile... - but at the end it's a trade off: opportunity vs. anonymity

For some people - think of the Indonesians who are registering in the PosPay app - the opportunity of buying/selling gold with minimal spreads... sending/receiving it digitally... having it stored in fully insured, military-grade security vaults... managing everything directly through your smartphone (no financial advisors who know everything you do anymore!)... not needing a bank account (which is important for unbanked and underbanked people) (... but also for fully banked people who don't like banks )... extremely low minimum trading amounts... the option of redempting the coins and getting the corresponding physical sent at home...
... for some people these opportunities are more important than anonymity.


Btw, how many banks do you know that don't do KYC?
Your bank does KYC.
Does it prevent you from using your bank account?

[Peter90]

Hi Peter, you haven't answered my question regarding KYC, okay I'll repeat it :

-Then in the final paragraph there is the word "KYC", oh my god?
-So, this Kinesis application requires KYC for trading KAU and KAG?

The problem is with KYC and everyone doesn't want their privacy to be disturbed.

Hi Iyem,
everyone among who?
I'm pretty sure you mean the crypto community.

One major problem when crypto people discuss about benefits of cryptos for society or economy is that they look at things from the point of view of crypto traders and not of ordinary people.
In my view, gold-backed stablecoins exist in order to serve ordinary people, not crypto traders.

So I ask you now, considered the benefits of gold-backed stablecoins I listed above, what do you think will ordinary people choose between opportunity and anonymity?

[Peter90]

This is cool though but I hope the company behind this doesn't rugged because the gold bars are just 611 gold which is little compare to the total market of gold in existence.

The market cap says nothing about a company being honest or not Guru.
Letting your reserves - what backs up your coins - being audited by an independent company, that's much more important.

[Peter90]

Current XAut price is $ 2,032, it will increase and touch ATH
XAut ever reach $ 2,111. I think It will touch soon.

XAUt price is the price of an ounce of gold
because each XAUt is pegged to 1oz of gold

XAUt will touch ATH and reach $ 2,111 when 1oz of gold touch ATH and reach $ 2,111


This 1-year chart compares gold and XAUt