It is unlikely that today anyone can be surprised by the appearance of a new coin in the world of digital money. The Paxos Trust Company, regulated by the NYC Department of the Treasury, did so in 2018. Paxos Standard (PAX), a stablecoin issued by this corporation, has the unusual feature of being tightly pegged to the US dollar. The designers endowed their creation with distinctive characteristics and advantages over other similar projects.

About Paxos Standard

Token Paxos Standard is the first managed asset in the world of cryptocurrencies. However, initially it is the basis for payments, and not a currency for carrying out transactions on exchanges. Although developers do not exclude such an opportunity for users. As conceived by the creators of PAX, it will always be priced at $ 1, which means that the Paxos Standard cryptocurrency rate is stable. The token is very similar to other stablecoins, such as Tether, USDCoin, and TrueUSD. However, it has its own characteristics.

It is not possible to extract a coin through mining. This is due to the limitation of the issuance of currency and the pegging to fiat money. Like all stable cryptocurrencies, PAX strives to maintain reliability, eliminate fluctuations in the exchange rate against the dollar. That is, the main task is to transfer money via the Internet quickly and without commission. Paxos works with reputable financiers and adheres to the standards of the requirements. The project is regularly audited to confirm 100% guarantee of compliance with the dollar reserves. The procedure is displayed on the companys website, the data of which is updated monthly.

PAX can only be created if new dollars are available and received. If the user submitted $ 1, a new token is created. If it becomes necessary to return the dollar, it must be exchanged for 1 PAX, and the coin will be removed from general circulation. Coins are not created if there is no demand.

The creators call the features of stablecoin:

volatility is impossible;
instant coin conversion (24 by 7);
no commission for transactions.
Each token is backed by a US dollar insured by the FDIC, the Federal Insurance Corporation.

PAX cryptocurrency features

PAX, like other ERC-20 tokens, can be used in smart contracts in the form of programmable money, used for making payments, trading crypto assets, transfers. The stability of the coin allows it to be retained on trading floors. Today, Paxos Standard cryptocurrency is used for:

instant transactions without commissions on a global scale (using the internal platform);
protection of income in the crypto portfolio from volatility;
fast exchange of electronic and fiat currency;
reducing the number of counterparties, and hence risk factors;
calculation of actions with digital money in the equivalent to the dollar;
conducting transactions regardless of the opening hours of banks;
receiving a manager account with a minimum purchase of $ 100K.

Thus, the quality of the coin will allow users to pay with altcoins for a purchase or send funds without losing commission to the bank.

The main place of sale of the cryptocurrency is the Paxos parent platform. To purchase a coin, you must go through the registration procedure on the site and create an account. You can also make a purchase on other crypto-exchanges by replenishing your personal account with dollars or other popular cryptocurrencies.

An alternative way to get coins is a special web resource or online exchanger, where dollars for tokens can be exchanged without registering a user profile, while maintaining confidentiality. Transactions can be carried out in any format (FTP, SWIFT, API) by confirming by e-mail. The project is based on technology that allows for simpler confirmations, reducing the risk of transactions and expanding the capabilities of Paxos Standard transactions.

The volume of coins runs within 500 wallets. All exchanges where trades take place have the ability to store tokens, but the state of protection is low. Since the stablecoin is developed on the basis of Ethereum, then all the vaults that are suitable for this coin are also suitable for Paxos:

MyEtherWallet - the most popular browser-based one, easy to use and secure;
EthereumWallet - browser-based storage, well suited for stablecoins;
Jaxx is a quality multi-currency wallet, easy to use, available for all operating systems;
Mist is a good repository for smart contracts, but not finalized.
Hardware wallets are also preferred by users as a more convenient storage option. Trezor is considered the safest of all, as it is the most secure against hacking, theft, etc.

How PAX was created

The market launch on September 29, 2018 is due to the addition of this currency to the Binance exchange. The first days of trading the coin did not justify the declared value and was equal to $ 0.99. In October, the price jumped to $ 1.1, and later leveled off to 1. Capitalization by March 2019 rose to $ 100 million. Since June 2019, the developers have leveled off, and the coin is stable.

The main milestones of the companys development and coins are as follows:

Trust company Paxos Trust Company announced itself in 2012.
In 2013, its own exchange, itBit, was launched in Singapore.
In 2015, it became the first company to be officially allowed to provide services and produce products to the crypto industry. She was granted a trust charter and used DLT distributed ledger technology to significantly reduce financial risks.
In 2018, a blockchain platform of the same name was created and a crypt confirmed by the US dollar was launched.
The platform does not have its own blockchain, it operates on the basis of Ethereum. The creator of the Paxos Standard cryptocurrency, the Paxos team, characterizes their project with the following features:

transactions with assets and other funds are possible thanks to a regulated trust;
the use of blockchain technology allows instant and secure execution of transactions;
all together allows you to launch a platform for business and significantly reduces the problem of risks.
The developers of the project stated that the main purpose of the created crete is to enable the conversion of fiat currencies into digital ones and vice versa. There has been talk in the world that cryptocurrencies are being integrated into the sector of the real money economy and that they will receive an official status. Indeed, many countries have already allowed the use of digital money at the state level. Investors and users began to actively purchase the new coin. The platform, according to the idea of the creators, should become a connecting link between the existing system of finance and the new electronic economy.

Is the Paxos Standard endless?

Stablecoin is too young to talk about prospects. But the developers and experts themselves are optimistic about the position of the currency. What attracts the attention of the Paxos Standard? Obvious advantages such as:

legal status and protection by state authorities;
transparent reporting on the companys website (monthly audit);
release of new products of the company: Custody Service (for checking the depository account, clarifying market risks);
the functioning of the new Gold PAX token, the value of which depends on gold;
automatic service of secure transactions Post-Trade;
the launch of the new dollar stablecoin Binance USD (BUSD) is being prepared;
convenience for users - no commissions, transactions are always possible - 24 hours 7 days a week.
All facts indicate that the project is reliable, long-term and well thought out. He found support from American politicians and financiers, interest from ordinary users who now have access to a fast convector.

The advantages of cryptocurrency, such as the support of financial structures, stability, may well turn into disadvantages. Benefits such as no commission fees and transparency through audits can be attractive to clients.

However, the centralization of Paxos Standard can play a cruel joke - freeze your currency whenever you want. This alarms users. Also, not everyone is satisfied with strict verification. After all, not everyone who came to the crypto world because the decentralization system operates here will want to display their data. When choosing a platform and a coin, the question will arise which is better - stability or privacy. Today the project is rapidly expanding, increasing its client base.

Paxos Standard strengths

The success of the project is evidenced by the excellent characteristics of Paxos Standard, which are emphasized in every possible way by the creators and confirmed by traders:

The growth in the rate of popularization of crypto is influenced by the fact that the development team has extensive experience in promoting trading platforms and in the field of finance. The platform has investors, user trust, and well-established partnerships.
Successful start of the Paxos crypto platform. A month after the launch, the token began to be actively promoted and sold on many exchanges, in online exchangers. This confirms the demand for coins among exchange players and depositors.
Participants in the traditional financial market have recognized the asset as an instrument of payment and investment. This is a very important fact, since most public financial institutions are skeptical about cryptocurrencies and the prospects for their development.
The high level of technology proposed by the team and demanded by users makes it possible to win the status of a stable coin.
The listed points contribute to the development of the project and popularize the coin among users. There are some negative aspects that can negatively affect the development of the site:

Lack of original software base, because Paxos Standard is a classic ERC-20 token.
The youth of the platform, it still has few recommendations, it did not have time to prove itself. The creators are little known as specialists in the development of blockchain-based projects.
High competition in the market, several projects of a similar type came out at the same time.
According to users, the financial world is more interested in this kind of crypt than the blockchain society. Many users, deprived of the opportunity to mine coins, are categorically against such digital assets.
Due to the limited emission, the lack of the possibility of extracting currency through crypto-pools, a negative attitude towards the token is formed among traders.
To expand the user audience, increase investor interest, the authors of the project will have to work on eliminating negative trends.

Paxos Standard in TOP currencies

A new currency always faces problems of entering the market, because not all exchanges add new ones to their listing. The Paxos Standard crypto has quickly become popular. The leaders of the trading floors supported the new stablecoin, which is currently traded on 100 exchanges. The crypto is sold by such world celebrities as Binance, CoinEx, KuCoin, HitBTC, OKEx and others. The main trades are held in pairs with USDT (36% of transactions on BitZ), BTC, ETH, LTC (up to 20% of transactions on TOKOK, BitMart). Price jumps are not important in this case.

For investors, indicators such as daily trading turnover and market capitalization are of great importance:

daily turnover - $ 330 million, which is very significant for a one-year-old altcoin;
capitalization is constantly growing, is 240 million, which is equal to the number of coins launched.
The popularity factor is the comparison with competitors in favor of the new coin. On a daily basis, it overtook USDCoin (330 against 200), in terms of capitalization, it bypassed TrueUSD (240 against 190 million). So far, it has not been possible to catch up with Tether, which has a daily turnover of 18 billion and a capitalization of 4 billion. Many experts believe that this is a convenient tool for fixing profits in the crypto portfolio.