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PAX Gold

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Discover PAX Gold's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is PAX Gold?

PAX Gold (PAXG) is a stablecoin backed by physical gold, where each token represents one fine troy ounce of gold. It operates on the Ethereum blockchain, allowing users to buy, sell, and redeem tokens for physical gold. PAXG offers the benefits of cryptocurrency, such as fungibility and tradability, without the drawbacks of physical gold ownership, like storage costs and limited transportability.

How is PAX Gold used?

PAX Gold (PAXG) is a cryptocurrency that bridges the gap between traditional gold investment and digital assets. Here is how it is used:

Purchase and Ownership
  • Tokenization: PAXG tokens are created by tokenizing physical gold, which is stored in secure vaults. Each token represents one fine troy ounce of gold.
  • Ownership: When you own a PAXG token, you own the underlying physical gold, which is held in custody by Paxos Trust Company.
Trading and Redemption
  • Trading: PAXG tokens can be traded on various platforms, including Ethereum-based wallets and decentralized applications, with a low transaction fee of 0.02%.
  • Redemption: Tokens can be redeemed for physical gold (minimum of 430 PAXG) or its equivalent value in fiat currency through the Paxos platform.
Benefits
  • Accessibility: PAXG can be purchased, sold, or traded online, anytime and anywhere, making it more accessible than traditional gold investments.
  • Divisibility: Unlike physical gold, PAXG can be divided into tiny fractions, allowing for precise transactions regardless of investment size.
  • Secure Storage: The underlying gold is stored in professional-grade vaults, mitigating the risk of theft or loss.
  • Transparency and Authenticity: Each PAXG token is backed by a specific amount of physical gold, which is regularly audited and verified, ensuring the real-world value of digital gold holdings.
Integration with DeFi
  • DeFi Compatibility: PAXG can be used as collateral on DeFi platforms, allowing users to earn a yield on their holdings.
Lookup Tool
  • Serial Number and Details: Token holders can use the PAXG lookup tool to view details about their physical gold, such as its serial number, value, and other characteristics.

Overall, PAX Gold offers a unique investment opportunity that combines the stability and value of physical gold with the efficiency, transparency, and flexibility of digital assets.

How do I store PAX Gold?

To store PAX Gold (PAXG) tokens, you can use a Ledger hardware wallet. Ledger supports PAXG, which is an ERC-20 token running on the Ethereum blockchain. Here are the steps to store PAXG tokens in a Ledger wallet:

  1. Select and Purchase a Ledger Hardware Wallet: Choose a Ledger hardware wallet that suits your needs, such as the Ledger Nano S Plus or Ledger Nano X.

  2. Download and Install Ledger Live App: Download and install the Ledger Live app on your desktop or mobile device. This app allows you to manage your assets, check your real-time balance, and track transaction histories.

  3. Add a PAX Gold Account: Within the Ledger Live app, add a PAX Gold account by selecting from various providers. This will enable you to manage your PAXG tokens securely.

  1. Store Your PAXG Tokens: Once you have set up your Ledger wallet and added a PAX Gold account, you can store your PAXG tokens securely. Ledger hardware wallets store your private keys offline, making them resistant to malicious attacks and threats.

  2. Monitor and Manage Your PAXG Tokens: Use the Ledger Live app to monitor your PAXG token balance, track transactions, and manage your digital gold holdings securely and efficiently.

By following these steps, you can securely store and manage your PAX Gold tokens using a Ledger hardware wallet.

How to buy PAX Gold?

To buy PAX Gold (PAXG) tokens, follow these steps:

  1. Choose an Exchange: Select a reputable cryptocurrency exchange that supports PAXG, such as Kriptomat, Uphold, Kraken, KuCoin, or Binance.

  2. Create an Account: Sign up for an account on the chosen exchange. This typically involves verifying your email address and identity.

  3. Add Funds: Deposit funds into your account using a credit card, debit card, wire transfer, or Bitcoin.

  1. Buy PAXG: Navigate to the PAXG trading page and enter the amount you want to purchase. Preview the transaction and confirm your purchase.

Additionally, you can also purchase PAXG directly from Paxos.com, which offers a lower cost structure and no storage fees.

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History of PAX Gold

PAX Gold (PAXG) is a gold-backed stablecoin that was launched in September 2019 by Paxos Standard, a company founded by Charles Cascarilla and Richard Teo in 2012. The creation of PAXG was a response to the demand for a secure and stable store of value in the cryptocurrency market. It is the world's first regulated gold-backed digital asset, built on the Ethereum blockchain, and its price is pegged to the spot price of gold.

PAXG is backed by physical gold reserves held by Paxos Trust Company, which are independently audited and subject to regular inspections. Each PAXG token represents one fine troy ounce of a London Good Delivery gold bar, stored in professional vault facilities. The token holders have ownership rights to the gold under the custody of Paxos Trust Company and can redeem their tokens for physical gold.

PAXG allows users to buy and sell partial or infinitesimally small amounts of gold, making it more accessible to retail investors. It also provides the benefits of actual physical ownership of specific gold bars with the speed and mobility of a digital asset. The token can be traded on various exchanges, lending platforms, and within the crypto ecosystem.

Paxos Trust Company, the issuer of PAXG, is regulated by the New York State Department of Financial Services and has received strong institutional support, raising over $500 million in funding from investors like OakHC/ Mithril Partners and PayPal Ventures.

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How PAX Gold works

PAX Gold (PAXG) is a stablecoin created by Paxos Standard that is backed by physical gold. Each PAXG token represents one fine troy ounce of a 400-ounce London Good Delivery gold bar, which are stored in secure vaults managed by Brink's. This means that when you own a PAXG token, you own a piece of real, tangible gold.

How It Works
  • Tokenization: PAXG tokens are built on the Ethereum blockchain, making them compatible with Ethereum-based wallets and decentralized applications. This allows for easy transfers, trading, and staking of the tokens.
  • Gold Storage: The physical gold backing the tokens is stored in professional-grade vaults, ensuring secure storage and mitigating the risk of theft or loss.
  • Serial Numbers: Each PAXG token is allocated a unique serial number that matches the serial number of an individual gold bar held in reserve. This allows holders to track the details of their physical gold, such as its serial number, value, and other characteristics using the PAXG lookup tool.
  • Redemption: Holders can redeem their PAXG tokens for physical gold, fiat currency, or other digital currencies at the current market price of gold. However, there is a minimum redemption requirement of 430 PAXG tokens.
  • Audits and Transparency: Paxos undergoes monthly audits to ensure that the gold reserves match the supply of PAXG tokens. These audit reports are published on the Paxos website, providing transparency and authenticity to the system.
  • Security: The system is designed to prevent fraud and money laundering. Developers regularly perform smart contract audits to detect bugs and vulnerabilities, and transactions are monitored using third-party analytical tools.
Benefits
  • Accessibility and Liquidity: PAXG can be purchased, sold, or traded online, anytime and anywhere, making it more accessible than traditional gold investments.
  • Divisibility: Unlike physical gold, PAXG can be divided into tiny fractions, allowing for precise transactions regardless of investment size.
  • Secure Storage: The underlying gold is stored in professional-grade vaults, mitigating the risk of theft or loss.
  • Transparency and Authenticity: Every PAXG token is backed by a specific amount of physical gold, ensuring the real-world value of digital gold holdings.
  • Ability to Earn: PAXG is compatible with the entire crypto ecosystem, including DeFi platforms, where holders can use it as collateral and earn a yield on their holdings.

Overall, PAX Gold offers a unique investment opportunity by combining the reliability and value of physical gold with the efficiency, transparency, and flexibility of digital assets.

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PAX Gold's strengths

PAX Gold (PAXG) offers several strengths that make it an attractive investment option:

  1. Accessibility and Liquidity: PAXG can be purchased, sold, or traded online, anytime and anywhere, making it easily accessible. It can also be divided into tiny fractions, allowing for precise transactions regardless of investment size.

  2. Secure Storage: The underlying gold is stored in professional-grade vaults, mitigating the risk of theft or loss. This eliminates the need for individual storage and security measures.

  3. Transparency and Authenticity: Each PAXG token is backed by a specific amount of physical gold, which is regularly audited and verified. This ensures that the value of the digital gold holdings is always tied to the real-world value of the physical gold.

  1. Ability to Earn: As a cryptocurrency, PAXG is compatible with the entire crypto ecosystem, including DeFi platforms. This allows users to earn a yield on their holdings by using PAXG as collateral.

  2. Flexibility and Programmability: PAXG operates on the Ethereum network, making it compatible with Ethereum-based wallets and decentralized applications. It can be staked, traded, and redeemed for real gold bars, offering a high degree of flexibility.

  3. Regulatory Compliance: Paxos, the company behind PAXG, adheres to strict compliance and regulatory practices, ensuring transparency and security for investors.

  1. Redeemability: PAXG tokens can be redeemed for physical gold, fiat currency, or alternative cryptocurrencies, providing investors with versatile options.

These strengths make PAXG an attractive option for those seeking to invest in gold with the benefits of digital assets.

PAX Gold's risks

PAX Gold (PAXG) carries several risks:

  1. Government Regulations: PAXG may be subject to government regulations, which could limit its use or negatively impact its stability.

  2. Centralized Control: PAXG is not decentralized, which means it is managed by Paxos and may therefore be subject to censorship or other forms of control.

  3. Market, Credit, and Operational Risks: Like any other asset, PAXG is subject to market, credit, and operational risks. The value of PAXG is tied to the spot price of gold, and its price stability is dependent on the stability of the spot price of gold.

  1. Technological Learning Curve: For those unfamiliar with digital assets and cryptocurrencies, there may be a steep learning curve, which can be daunting for newcomers.

  2. Dependence on Technology: PAXG relies on technology, which means investors are reliant on the platforms, exchanges, and wallets that support the digital gold token. Any technical glitches, hacks, or outages can impact accessibility.

  3. Minimum Physical Redemption: A minimum amount (430 PAXG) is required to redeem for physical gold, which means smaller holders cannot directly exchange their PAXG for physical gold.

  1. Digital Security Concerns: Digital assets are susceptible to cyber threats. While blockchain technology is secure, other aspects, like exchanges or personal wallets, can be vulnerable.

  2. Risk Gauge: PAXG has been given a moderate risk rating by InvestorsObserver, indicating that it may be susceptible to market manipulation due to limited trading volume and market capitalization.

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Did PAX Gold raise funds?

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PAX Gold's ecosystem

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PAX Gold’s team

  • Charles Cascarilla: Co-founder of Paxos Trust Company, which created PAX Gold. He is a former analyst at Goldman Sachs.
  • Richard Teo: Co-founder of Paxos Trust Company, which created PAX Gold. He is a former analyst at Cedar Hill Capital Partners.

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