- Delta Exchange has just started offering Tether Gold (XAUt) Perpetual Contracts with x20 leverage, paired against USDT.
- The exchange's goal is to try and attract customers to a safe token backed by physical gold.
- With the coronavirus fears continuously damaging the economy, traders are massively selling any risky asset, while seeking safe havens, which might lead them to XAUt.
Delta Exchange seems to be using a new approach to attracting traders, and this time, it appears to be specifically targeting gold bugs. In the new move, the exchange announced the launch of Tether Gold (XAUt) Perpetual Contracts, accompanied by 20x leverage, against USDT.
The new trading product will let traders hedge against the market risk, simply by letting them buy Tether Gold futures with leverage. The futures themselves are quite new on the platform, only being launched yesterday.
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Pankaj Balani, the CEO of Delta Exchange, commented on the launch by saying that the introduction of XAUt — a cryptocurrency backed by physical gold — to the platform is quite significant for opening a new trading sector. The goal of the new sector is to allow traders to purchase physical gold through these tokens. Meanwhile, the futures contracts will provide traders with a way of hedging, and will help with offsetting of risk.
XAUt has potential to shine during the COVID-19 outbreak
As some may know, XAUt is a digital asset offered by TG Commodities Limited. It provides traders with access to a combination of physical and digital assets, meaning that those who hold the tokens can exercise ownership of physical gold. However, they can also avoid certain drawbacks that usually come with owning gold, such as limited accessibility, as well as high costs of storage.
The XAUt token is also quite convenient, as it can easily be transferred to any on-chain address from the buyer’s Tether wallet, after they have completed the purchase. Meanwhile, each gold bar is connected with an address that is also stored on-chain, and it shows where the token is held.