cryptocurrencies

Paxos Standard (PAX) - A Complete Guide

Daksh Murkute | | |

After PayPal, recently MasterCard- a leading payments company also announced that it has partnered with two stablecoin platforms to try new solutions to expand and one of them is Paxos, Paxos also raises $300 million to build an infrastructure for cryptocurrency, and it also launched a new settlement service for commodities.

 

Paxos PAX is the most widely adopted stable coin currency which supports over 20+ exchanges. It is the first regulated blockchain company, which can offer great protection to its customer assets.

 

Paxos token PAX is based on Ethereum blockchain and on a 1:1 basis with US dollar.

 

In this blog, you will know everything about Paxos standard, its uses. its achievements and about its token PAX.

Contents

What is Paxos Standard (PAX)?

Why we need stable coin?

PAX's Features and Benefits

History of Paxos Standard (PAX)

How it can be used?

Paxos Products

What it does achieve?

Disadvantages of Paxos Standard

Current market value

What  do you think about PAX?

 

Are you sick of these wild fluctuations in the crypto market? Are you looking for a stable medium of investment in which you can invest your money without bearing the methods and consequences of banks and markets?

Are you looking for an institution in which your coin is safe and sound? But after hearing a lot about cryptocurrencies volatility, your mind is not at peace?

Paxos
Standard is for you. You can invest your money in Paxos, Paxos is a stable coin.

 

What is Paxos Standard (PAX)?

Paxos logo

    

 

To understand Paxos Standard (PAX), first, let’s understand, what is stablecoin?

 

A stablecoin is a type of coin in the cryptocurrency market, whose value is bound with an outside asset such as US dollars, Euro, gold. This outside asset is responsible for stabilizing the price of that coin.

 

Why we need stable coin?

 

Look at cryptocurrencies like Bitcoin, Ethereum, Bancor, Curve DAO, etc. They have many benefits, but one key drawback is, their prices are unpredictable, and sometimes they can fluctuate wildly.

 

So stablecoin is trying to overcome these drawbacks by binding its value to some outside assets in most cases US Dollar.

 

"Paxos Standard (PAX) is a stable coin that allows users to exchange US dollars for Paxos Standard (PAX) cryptocurrency in 1:1 manner."

 

1:1 means Paxos Standard accepts 1 US dollar from its users and issues 1 PAX coin in exchange, and this PAX coins can be used to buy goods and services, in transfer, and in transaction purposes.
 

The main purpose of PAX is to mix the stability of the US dollar with blockchain technology. It is issued on Ethereum Blockchain, with the help of PAX:
 

  1. We can transact our coins worldwide in a fraction of a second. In fiat money, this is somewhat difficult because of banks and government rules.
     

  2. It provides immutability, which means the data in the blockchain cannot tamper so nobody can change it.
     

  3. Paxos is decentralized in nature.
     

  4. Users can perform, 24/7 transactions.

 

PAX’s Features and Benefits

  1. There is no middleman in PAX which makes it a fast, efficient, and low fee project.
     

  2. PAX can be sent and receive easily by anyone. It provides error-free transactions, and also has the access of larger community which are under the umbrella of Ethereum.
     

  3. It is listed on the world’s top cryptocurrency exchanges.
     

  4. It is available 24/7.
     

  5. The value is almost stable and the fluctuation is very small.

 

History of Paxos Standard (PAX)

Paxos history

Paxos Standard (PAX) was founded by Paxos in 2018. Paxos is a New York-regulated financial institution.

The CEO of Paxos is Charles Cascarilla. He has 20+ years of experience, his team at Paxos has professionals from different backgrounds and nationalities varies from Banking, Management to IT. 

 

The main objective was to build an ecosystem in which digital assets can be deployed, and also provides speed and accessibility to the users. User can transfer their asset anywhere at any time without any external costs.

 

How it can be used?
 

  1. The user sends his money to Paxos Standard, which directly goes to the bank account of Paxos as securities.
     

  2. Then Paxos creates the equivalent amount of PAX and
     

  3. The fresh PAX is delivered to the user.
     

This same process is used in reverse when we want to redeem our PAX token into USD

 

This is a very simple system; one US dollar is equal to one PAX. 

 

Paxos Products

showing the Paxos product

Paxos has a series of products in almost every financial field. Some of them are:

  1. Crypto Brokerage

  2. Settlement services.

  3. Post-trade

  4. Stable coin as a service

  5. PAX Gold

  6. itBit

 

What it does achieve?

 

Paxos achievement

 

In the crypto market, Paxos is one of the fastest-growing stable coins. It supported over 20+ exchanges in just five weeks of its existence. Now it supports by the major crypto exchanges including Binance.
 

    1. Paxos raises $300 Million at a $2.4 billion valuations. It is one of the fastest-growing financial technology in the world.
       

    2. Paxos partnership with PayPal to buy and sell crypto services.
       

    3. It has approximately $10 billion of assets across three main stable coins backed with the dollar.

 

Disadvantages of Paxos Standard

 

The main disadvantage of Paxos is, they did not offer any innovative solution in the market. The idea of a cryptocurrency backed by the US dollar is not new and it is not enough to be relevant in the market. If they want to grow they should have to bring new inventions and new ideas to the market.

 

One more disadvantages is, in market PAX is promoting as its coin as USD digital and this could cause a great harm to their clients in the market.

 

Current market value

 

market value of Paxos

 

Paxos Standard (PAX) is always maintaining its value to one dollar, and it has a circulating supply of 905M coins which means the total market cap is $905M. There is no max supply of tokens because the PAX coin is the total demand-driven coin.

 

According to CoinMarketCap the rank is #72 at the time of writing and it is available in major cryptocurrency exchanges like Binance, Houbi Global, etc.

 

What do you think about PAX?

Paxos saw the need for a stable coin in the cryptocurrency market, and it understand the benefits of cryptocurrency, which would not be unpredictable like other currencies and would also be free from the traditional financial ecosystem. PAX provides a platform to the people, where people can invest without the worries of market conditions. In the future, I think Paxos will become the crypto market-leading stablecoin, it will set an example and provide the guide to cryptocurrency market.

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