2026-01-02 19:21:35

Why is traditional gold arbitrage so troublesome?

Domestic gold LOF arbitrage used to be all the rage, but problems kept emerging—opportunities are fleeting, missing out means missing out; liquidity is tight, making it hard to close positions; premium fluctuations are unpredictable, and risks catch investors off guard. This approach has long fallen out of favor.

But a new perspective can bring a fresh outlook. The cryptocurrency gold token PAXG is changing the game, redefining the liquidity and tradability of gold assets through blockchain technology. 24-hour liquid markets, transparent on-chain transactions, and instant convertibility—these conveniences unavailable through traditional channels are attracting more and more investors to reconsider gold asset allocation.

From arbitrage dilemmas to on-chain opportunities, a new approach to diversified asset allocation might be right here.

PAXG1,44%

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NFTRegretter

· 01-03 21:17

The traditional gold arbitrage game has long become boring, really. On-chain solutions like PAXG are the right way to go; 24-hour trading is a blast. --- Is this another concept of cutting leeks? How is PAXG better than LOF? --- Wow, still promoting some blockchain gold, same old rhetoric. --- On-chain trading transparency is really convenient, gotta admit that, but what about the risks? --- Getting gold on the chain is only a matter of time, and PAXG really hit the right spot. --- Wait, is the claim that it can be exchanged anytime true? I don’t see any advantages. --- Compared to the hassle of LOF, the idea of PAXG is much cleaner. --- Another new scam to cut leeks, don’t believe it. --- 24-hour liquidity really hits the pain point, gotta say. --- After gold tokens became popular, regulation still matters; this thing carries significant risks.

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MagicBean

· 01-03 10:43

That Gold LOF scheme is really annoying, with poor liquidity and having to watch the market. PAXG, on the other hand, is truly convenient with 24-hour trading.

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fren_with_benefits

· 01-02 19:49

Traditional gold is really a trap, with such poor liquidity and still getting chopped up. Traditional gold arbitrage has long been outdated; on-chain PAXG is the future way to play. Honestly, the LOF model is already outdated; who doesn't crave 24-hour liquidity? The trend of gold tokenization is unstoppable; the crypto world is much more flexible than traditional finance. Really, traditional arbitrage mechanisms are too outdated; solutions like PAXG are truly satisfying.

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PumpDetector

· 01-02 19:43

lol traditional gold arb was always just liquidity theater... but ngl PAXG's 24/7 on-chain flow is hitting different. finally someone figured it out after all these years watching the premium decay into nothing 🧠

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LiquidityWizard