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Choose your quick section of our Paxos Standard review below.
A Quick Overview of our Paxos Standard Review:
PAX is an ERC20 token that was issued on the Ethereum blockchain and it is a regulated stablecoin which is backed by the US dollar, which means that it brings the benefit of blockchain technology while enjoying the stability brought by fiat currencies.
Paxos Standard Live Price
What is Paxos Standard?
Paxos Standard, or PAX, is an ERC20 stablecoin which is regulated and maintains a 1:1 ratio with the United States dollar. PAX was issued by the Paxos Trust Company in 2018 and it enjoys strict regulation by the New York State Department of Financial Services (NYDFS).
Key Features and Takeaways of Paxos Standard
Paxos Standard, more commonly referred to as PAX, is one of the top 100 cryptocurrencies in the market which is featured on major exchanges. PAX has the following key features and takeaways:
PAX is an ERC20 token that was issued on the Ethereum blockchain and it is a regulated stablecoin which is backed by the US dollar, which means that it brings the benefit of blockchain technology while enjoying the stability brought by fiat currencies.
PAX offers users and holders with instant transactions worldwide, immutability, decentralised accounting, and access to 24/7 transactions.
PAX can be redeemed for USD at any given time but according to United States Law, Paxos standard is not considered a security.
PAX Standard was established following the controversy surrounding Tether, where the leading market stablecoin experienced significant scrutiny for printing Tether during the 2018 crypto market bull run.
The team behind the development of Paxos saw this as the perfect opportunity and made a conceited effort to remain as transparent as possible to avoid the same scrutiny that Tether faced.
Paxos issues and burns tokens by using audited and automated smart contracts which are inspected by Nomic Labs, a smart contract auditor.
The team who created Paxos Standard all come from diverse backgrounds including Wall Street and Silicon Valley.
The objective of the team is a future where blockchain is not a part of major financial revolutions, but an essential element in the evolution thereof. Paxos aims to improve the economic system by developing a global network without friction for the simple, mobile, and instant exchange of a variety of assets.
Paxos Standard has been designed to have expanding use cases. Currently, it has the primary use of limiting the volatility for which cryptocurrencies are inherently known. This is achieved by removing friction from cross-border transactions and to become a reliable payment vehicle not only for cryptocurrencies but also other blockchain assets.
The team behind Paxos expects that PAX will be used for consumer payments in addition to becoming a store of value for those residing outside of the United States, especially in developing nations that have unstable national currencies.
The tokenisation of USD to PAX is a simple procedure where users send USD to the token issuer’s bank account. This issuer creates an equivalent of PAX using an associated smart contract. The freshly minted PAX is then delivered to the user while USD is held in the bank account.
When users redeem PAX for USD, the same process is repeated, albeit in reverse. Each PAX token can be purchased and redeemed using Paxos.com. Once PAX tokens have been redeemed, the tokens are immediately burned through a smart contract and subsequently removed from circulation.
PAX differs from other stablecoins in that it has regulation, guaranteed cash deposits, auditing, security, zero fees, and daily windows for purchases and redemption.
Paxos Standard Mining
PAX cannot be mined or staked. When users wish to trade their USD for PAX, USD is placed and held in a bank account and a proportional amount of PAX is minted and sent to the requester. Once users wish to convert their PAX back to USD, the amount of PAX is burnt once the user receives the amount of USD proportional to PAX.
PAX is backed by the United States dollar at a ratio of 1:1 and it provides some stability, especially when considering the volatility attributed to the cryptocurrency market.
PAX stablecoin offers users with a borderless digital asset that can be transferred by anyone in addition to being a store as value or wealth. Cryptocurrency adoption is becoming more widespread and popular, with more people being receptive towards them, explaining why PAX is gaining popularity.
Even though users cannot earn a passive income with PAX, there is still a world of possibilities with this stablecoin, especially when considering the following:
The strict compliance and reputable regulation by NYDFS.
The guaranteed deposits which are overseen by FDIC-insured American-based banks.
The frequent account audits which is under control by a US-based auditing firm.
The monitoring of every transaction to ensure security and transparency.
The convenience and easy movement of funds
The fact that there are no charges on transactions.
Pros and Cons
| ✔️Pros | ❌Cons |
|---|---|
| PAX is listed on most major exchanges | PAX is in direct competition with several other stablecoins |
| PAX is backed by the US dollar at a 1:1 ratio | It is pegged to the US dollar and therefore not immune to inflation |
| Paxos standard is regulated by the NYDFS and deposits are overseen by FDIC-insured banks | |
| Each transaction of PAX is monitored | |
| There is complete transparency and guaranteed security | |
| There are no fees charged on transactions |
Transaction Fees
| Type of Fee | Information |
|---|---|
| Trading Fees | None |
| Withdrawal Fees | 350 PAX (Gate.io) |
Should you buy Paxos Standard?
PAX is a stablecoin which is pegged to the US Dollar and therefore its value is determined by fluctuations in the USD. However, with the fact that each PAX represents a USD in reserve, more investors have started investing in PAX and even though it will not ensure them with a passive income, they have some collateral, especially as PAX tries to leverage the volatility for which cryptos are known.
In exchanging USD for PAX, users can use it to transact, pay fees, and several other functions.
However, one thing that may deter investment is that there is a substantial amount of competition in the stablecoin space, with multiple stablecoins that have been released in the past few years, all seeking to achieve the same goal.
Even though PAX is backed in terms of liquidity and reach, it cannot be argued that there are several other alternatives that are attractive to investors. The success of stablecoins is determined by two factors namely marketing and the features offered.
If PAX does not serve any other purpose, the development team will have to make a conceited effort to get word to the masses of its stability as a stablecoin that also doubles as a “digital dollar”. Unfortunately, other stablecoins also market themselves as the same, and it comes down to investor preference.
There are some stablecoins that have a completely different design, such as the DAI token in the MakerDAO system. This system is fuelled by Collateralised Debt Positions (CDPs), and even though this opens a world of new issues, CDPs are something worth considering, especially where future development and possibilities are concerned.
What works in the favour of PAX, is the fact that it is extremely compliant with regulations, which makes it attractive to future investors who need that guarantee and security, especially those who seek practical solutions that avoid the treacherous and tedious entry points associated with exchange trading as well as ICOs.
How to buy Paxos Standard (PAX)
Step 1 – Open an account on Binance
Navigate to the official Binance website and select “Register Now”. You will be redirected to a “Create a Free Account” where you can either register with your email address or your mobile number.
You can enter your email address and user-selected password or select the “Mobile” option at the top of the form. Select your country code and enter your mobile number along with your user-selected password.
Once you have completed the necessary fields, you can read and accept the Terms of Service before selecting “Create an Account”.
You may have to complete a Security Verification that will confirm that you are not a robot. Next, there is an account verification. During this, a 6-digit verification code is sent to the email address or mobile number that you provided. The code is only valid for 30 minutes and must be entered in the blocks provided on this page.
Once the verification is completed, a welcome page will load, and you will be given the options through which you can either trade or purchase cryptocurrency. If you are new to crypto, you can visit the “Learn More” Section at the bottom of the page.
Step 2 – Secure account with two-factor verification
On the trader’s dashboard, select the option to secure your account with two-factor verification. Even though phone verification is a secure option, the most preferred and secured method is to make use of the Google Authenticator.
Once downloaded and installed, either scan the QR code or type in the one-time, unique code provided to add your Binance account credentials onto Google Authenticator.
Once completed, write down the back up key provided to recover your account on Google Authenticator in case you lose or misplace it. In the final step, enter the 6-digit code which you will receive on your registered email address along with the Google verification code.
Step 3 – Deposit funds
Binance allows for the purchase of cryptocurrencies via fiat deposits as well as cryptos. Deposits can be accessed from the following locations:
The “Welcome to Binance” banner.
Hovering over “Buy Crypto” at the top of the web page and selecting your preferred method.
Selecting “Deposit” on the “balance details” section on your traders dashboard.
Once you have selected the option to “Deposit”, you can select whether you wish to deposit cryptocurrencies from another wallet, or whether you want to make a fiat deposit.
For Crypto deposits, follow these steps:
Select your coin between Bitcoin, Ethereum, TetherUS, BNB, or EOS.
Select the network to be used between BEP2, BEP20 (BSC), ERC20, or TRC20 and accept the conditions for using the network.
Copy the address or scan the address QR code from the wallet where you are depositing and follow further prompts. Kindly note that each network has its own set of network confirmations between 1 up to 15 confirmations before the deposit will be done.
For deposits in Fiat currencies, follow these steps:
Select the deposit currency from the dropdown list. To gain access to more currencies, it is necessary to verify your identity and face.
Select the payment method to be used, depending on the currency chosen.
Enter the deposit amount and any other details. Kindly note that the transaction fee will be displayed along with the balance after this is subtracted.
Continue with the deposit.
Step 4 – Start Trading
Once you have completed your deposit, you can navigate to the “Markets” section at the top of the page to view the available cryptocurrencies. From here, you can buy, sell, and trade currencies at competitive prices.
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FAQ
When was Paxos Standard first launched?
Paxos Standard was launched in 2018.
Who founded Paxos Standard?
Charles Cascarilla and Rich Teo founded Paxos Standard.
What is “ICO”?
It is Initial Coin Offering that, unlike an IPO, does not mean that those who invest in the cryptocurrency will have an ownership stake of the company that they provide funds to.
When was Paxos Standard’s ICO and how much did it raise?
Paxos Standard did not have an ICO as it is a stablecoin which is pegged to the US dollar at a 1:1 ratio.
Is Paxos Standard legit?
Yes, Paxos Standard is legit.
What is Paxos Standard’s total supply?
Paxos Standard does not have a maximum supply. As PAX is requested, it is minted and exchanging PAX, PAX will be burned accordingly. This process is carried out through smart contracts.
What is the purpose of Paxos Standard?
PAX aims to provide a way for money to be transferred quickly and at no additional cost while being backed by the US Dollar at a 1:1 ratio.
On which blockchain is Paxos Standard based?
PAX is an ERC20 token which is based on the Ethereum blockchain.
Does Paxos Standard work with smart contracts?
Yes, Paxos Standard uses smart contracts to issue and burn tokens.
Does Paxos Standard have potential to become more valuable?
PAX is pegged to the US dollar which means the value thereof will appreciate and depreciate in accordance with its pegged fiat currency.
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