I'm forced to create this topic today because it's getting annoying how some new developers are creating gold backed tokens on this forum, please listen to me, some use cases are foul play in crypto space and gold backed tokens are one of them, many so called devs are building tokens but they have no proof that those tokens are backed by any gold yet some investors believed them, it's all lies, open your eye people...
The only way I can trust a token that's backed by real gold is if the project is from a gold company, verified and certified, I'm talking about well known real gold companies like
1. Kinross Gold
2. GoldCorp
3. Agnico-eagle mines e.t.c
These are examples of real life gold companies, stand for the truth and stop promoting or patronizing unrealistic crypto projects
Actually there are two important highlights about crypto coins that are labeled stable, or a benchmark on something.
Gold. This means that the company must reserve gold in accordance with the amount of existing gold crypto. This is to avoid bankruptcy on the project. You have told the details.
The second is about stable crypto which is based on fiat.
Say USDT.
Does the company USDT or Tether have a stock of USD as much as USDT crypto. I think there is no.
If the USDT holder withdraws all balances to Fiat, what will happen. Are they able to pay for everything? Of course there will be a pending for months, because the Conventional Bank does not accept incoming money from the crypto company.