As crypto takes a nosedive, gold-backed tokens ensure investors won’t crash too

In his monthly crypto tech column, Israeli serial entrepreneur Ariel Shapira covers emerging technologies within the crypto, decentralized finance (DeFi) and blockchain space, as well as their roles in shaping the economy of the 21st century.

The crypto market is in a downward spiral, with Bitcoin (BTC) plunging over 50% below its peak price. In an even more dramatic slump that’s now making all the headlines, Terra’s LUNA dropped 99% in a single month. The Economic Times called it a “massacre of Terra investors who were slaughtered within 48 hours.”

For now, nobody can tell how deep this plunge will be, but investors don’t have to go down with their investments. Tokens backed by real assets can allow them to hedge against the ongoing downturn.

Related: Stablecoins will have to reflect and evolve to live up to their name

Gold has always been a lucrative investment and has stood the test of time, consistently preserving its value no matter the market conditions. Just recently, gold was surging, and some expect it to keep climbing up throughout the year amid persistent economic shakeups. Thanks to tokenization, gold has gotten a new shine and is offering its security to the world of crypto. Here are some of the gold-backed projects that are offering investors stability when it’s off the menu in the general crypto market.

VNX Gold

VNX, Europe’s first regulated platform for investing in tokenized precious metals, recently launched VNX Gold (VNXAU), based on Ethereum. Each VNXAU represents an ownership stake in a physical gold bullion certified by the London Bullion Market Association (LBMA), offering investors maximum security and certainty.

VNX Gold grants investors all the advantages of the underlying commodity combined with the flexibility of a crypto asset. Every VNX Gold token is linked with a unique serial number stamped on a respective gold bar, which is stored in a vault in Liechtenstein. This enables investors to effectively keep their gold in their…