PAX Gold

What is PAX Gold (PAXG)?

PAX Gold (PAXG) is ERK-20 token included Ecosystem of Paxos. It is an asset-backed stablecoin, meaning that The price of PAXG is tied to the price of gold. It offers a more flexible means of trading gold by using a decentralized system.

Paxos DeFi infrastructure which offers a range of services including centralized exchange (CEX), crypto brokerage, commodity settlement and other stablecoins, in addition to PAX Gold. It aims to increase the availability of valuable assets in the real world and mobilize their trading in the blockchain space.

The price of PAX Gold has been in line with the price of gold in traditional markets since its inception. You can see the current price of this stablecoin in the chart above.

Who is the founder of PAX Gold?

PAX Gold, like the Paxos ecosystem as a whole, was founded Charles Cascarilla. He is an entrepreneur and financial expert who has founded and co-founded a number of centralized and decentralized projects. Cascarilla is the current CEO of Paxos.

The purpose of the PAX Gold crypto service is simplify the gold trading process and make it more accessible by linking physical assets with digital ones. Gold is a lucrative asset for many traders due to its safe haven status and is considered a good option for portfolio diversification.

However, owning gold is physically inconvenient due to storage requirements and difficulties with physical trading. Access can be difficult for small traders as investment grade gold bars can cost hundreds of thousands of dollars.

Paxos was founded Ethereum blockchain, and PAX Gold operates as an ERC-20 token. However, according to the white paper, there are plans to launch the project on other blockchains in the future to increase the digital accessibility of gold-backed assets. As a stablecoin, PAXG has not undergone an initial coin offering (ICO) or other pre-sale funding.

PAX Gold was designed as a stablecoin. Stablecoins These are assets whose value is backed by a tangible asset in the real world. Although the most common connection to cryptocurrencies is fiat currency, such as the US dollar or euro, others may be backed by valuable items such as diamonds or, in the case of PAXG, gold. Since gold is a scarce commodity, both the price of Pax GOLD and the value of the physical asset can be expected to increase in the future.

What are the main features of PAX Gold?

The maximum quantity of PAX Gold is not limited in advance. since it depends on how much gold is in the vault. The number of tokens in circulation is minted and burned regularly to adjust to supply and demand. PAX Gold has a 1:1 conversion rate to gold. It means that The price of PAXG is exactly the same as the market rate of gold at any given time.

Historically, gold is considered to have low volatility, meaning PAXG is a significantly stable asset compared to other cryptocurrencies. Given that PAX Gold’s price is pegged to gold, it is not subject to general cryptocurrency trends and instead follows the same market fluctuations as its neighboring asset.

All assets listed on PAX Gold have a real world equivalent. According to the Paxos platform, the physical assets are delivered by London Good Delivery. One PAX Gold coin is equal to one troy ounce of pure gold (t oz).and the minimum required purchase is 0.01 t oz.

Unlike the traditional market where they must own a share or a full gold bar, PAXG allows users to own a piece of a physical asset. Each gold bar intended for trading has a serial number.

The ability to store the value of a legal gold bar is a core feature of PAXG. If a user owns enough assets that their PAX Gold price is equal to one gold bar, they can exchange it for a physical asset.

PAXG’s security is twofold. The blockchain itself is protected using Proof of Work (PoW) consensus algorithm while gold bars are stored in Brink Precious Metals Vaults.