What Is Pax Gold (PAXG)? How It Works & Where To Buy It?

Pax Gold (PAXG) is a crypto asset that is backed by actual gold held by Paxos – a Pax Gold token represents one fine troy ounce of gold.

Paxos has found a way to provide an innovative solution to the common investor dilemma: whether to invest in crypto or gold?

Owners of PAXG tokens have legal ownership of physical gold assets that are held by the Paxos Trust.

PAXG is currently the 65th largest cryptocurrency by market cap.

 

How Pax Gold (PAXG) Works

Paxos trust company is deemed to be one of the more credible and trustworthy companies and has helped major cryptocurrency exchanges like Binance to develop a transparent stablecoin (BUSD).

The company is also registered with the New York State Department of Financial Services, which offers an additional level of security and trust to the project. Paxos has made some innovative and unique moves in the crypto market – the latest being offering users a share in gold bars when they purchase a Pax Gold Token.

This is incredibly unique because it leverages blockchain technology and the advanced features of cryptocurrencies and ties them to physical assets – in this case, physical gold bars that are held at physical gold retailers.

Essentially, this value proposition slashes the typical debate of whether to invest in gold or crypto – well, at least to a certain extent. Because the project utilizes PAXG tokens, it can be seen as using crypto but from a fundamental point of view, the investors are simply investing in a cryptocurrency that follows the price of gold.

Simply put, the price of Pax Gold Tokens is relevant to the price of gold on the gold market. The only difference is that users can now purchase fractional ownership of allocated gold bars held by the Paxos trust company by using a native Paxos cryptocurrency.

The assets over by Paxos are redeemable Pax Gold (PAXG) tokens – users can either redeem PAXG tokens directly from Paxos and have the option of receiving cash or having the physical gold bars delivered to a vault (only available in London).

The standardization for gold bars in the London markets is handled by the London Bullion Market Association (LBMA). It should be noted that PAXG tokens are backed by underlying gold, but the Pax Gold price is determined by current gold market prices.

Users seeking to learn more about the relevant processes, the specific gold supply, and other important information can refer to the Pax Gold whitepaper.

 

What Is Pax Gold (PAXG) Used For?

Pax Gold is utilized as an innovative way to own gold assets through representation by a crypto asset. Many investors are interested in the gold industry because historically, buying a gold bar or owning a few ounces of gold have been seen as great investments. Gold is referred to as a store of value.

Many individuals can now leverage the cryptocurrency industry to make traditional investments into physical assets like gold through trusted and regulated companies like Paxos. The market price for PAXG follows the current gold market price, and all on-chain transactions are recorded according to the relevant market rules.

 

Where To Buy Pax Dollar (USDP)

Pax Gold (PAXG) has recently become of the most discussed cryptocurrencies because of its unique value propositions. It’s an innovative concept that allows users to own physical gold assets by purchasing PAXG tokens.

Pax Gold (PAXG) tokens can be purchased on both decentralized exchanges as well as a large number of centralized crypto exchanges. But, before purchasing PAXG tokens on a centralized exchange, you’ll need to deposit fiat onto a specific exchange. Following this, PAXG tokens are then credited to your PAXG digital wallet on the exchange.

The crypto exchanges below are the safest place where you can buy, sell and store the tokens.

1. Binance
2. Coinbase
3. KuCoin
4. Gate.io
5. Crypto.com

Users must be aware of the dangers before buying any tokens on a centralized exchange. Whenever a user stores tokens on an exchange, it essentially means that their private keys aren’t theirs because their tokens could be lost if the exchange were to be compromised.

Most individuals opt to store their tokens in a digital or hardware wallet. There are various wallets available on the market for PAXG tokens – the most popular and trusted digital wallet is MetaMask.

 

FAQs About Pax Gold (PAXG)

How long has Pax Gold (PAXG) existed?

Pax Gold was a concept conceived by Rich Teo and Charles Cascarilla. Cascarilla is a prominent partner at Liberty City Ventures as well as a founding member of the board of the Association for Digital Asset Markets (ADAM).

Additionally, Cascarilla is credited with helping establish Cedar Hill Capital Partners. He also has extensive experience working as a portfolio manager at Claiborne Capital Management, a financial analyst at Goldman Sachs, and a significant position at Bank of America.

Paxos is most notably known for being the first project to release a stablecoin that was fully licensed by a state regulatory body. The New York State Department of Financial Services’ Trust Charter granted the inventors of the Pax dollar a digital assets license in 2015, although the Pax dollar was first launched in 2018.

Pax Gold (PAXG) was released in 2019 and has grown to become one of the more popular tokens in the crypto space.

What’s controversial about Pax Gold (PAXG)?

Tokenized gold assets are notoriously controversial in the world of crypto. Many skeptics believe that tokenized versions of physical assets will fall and thousands of individuals will lose all their money.

Individuals should always consider factual and logical information about projects. Research as much as possible before investing in any project in the crypto industry.

Let’s take a look at the biggest controversy surrounding Pax Gold (PAXG).

• Risk Of An Exploit – When an individual owns a physical asset that can be stored in their vault or their home, it is deemed more trustworthy because they are in possession of the asset.
• However, when an investor purchases a tokenized gold asset, they are in possession of the crypto asset but not the actual physical asset. This creates a very risky situation because users could potentially lose their tokens if there were an exploit or major event that negatively affected the exchange where they were holding their PAXG tokens.

How many Pax Gold (PAXG) tokens are there?

At the time of writing, Pax Gold (PAXG) has a circulating supply of 333,660.58 PAXG

The total supply of Pax Gold (PAXG) is 333,660.58 PAXG

Can Pax Gold (PAXG) be mined?

Pax Gold (PAXG) can’t be mined. These tokens can only be issued once a user has deposited fiat to either Paxos or a relevant exchange.

What is the market cap of Pax Gold (PAXG)?

The market cap of Pax Gold (PAXG) is the total amount of coins in circulation multiplied by the current PAXG price.

Pax Gold (PAXG) Market Cap = 333,660.58 PAXG x $1,810 = $604 million (65th largest market cap).

Note that the market cap fluctuates according to circulating supply and market price.

 

Biggest Competitors Of Pax Gold (PAXG)

The tokenized gold sector is growing at a rapid pace, and several projects are listing tokens on the market. Gold investment has been around for hundreds of years, but now there’s a lucrative way to invest in gold with cryptocurrencies.

Pax Gold is currently the largest of all the tokenized gold crypto assets and has a market cap that is more than $200 million larger than its nearest competitor Tether Gold (XAUT).

The biggest competitors of Pax Gold (PAXG) are:

• XAUT
• PMGT
• DGX

 

What Are The Future Plans For Pax Gold (PAXG)?

Paxos will continue to grow its company and range of assets and broaden its reach across the world. The company has quickly grown to become a familiar name in the crypto space, and thousands of users trust the company.

The company’s unique range of crypto assets, paired with its regulation, makes it a trustworthy option for many individuals.

 

Pros And Cons Of Pax Gold (PAXG)

Pros

• 100% backed – The PAXG tokens are credibly backed by gold assets held by the Paxos trust company. Their allocated gold held in vaults is used to back PAXG tokens, opening up a unique market where individuals can securely invest in gold through cryptocurrencies.
• Innovative Investment In Physical Assets – Paxos has provided users with an incredibly innovative way to invest in physical assets like gold. Users can now own a share of physical gold by purchasing PAXG tokens. One PAXG token is equivalent to one troy ounce of gold.
• Major Partners – Paxos is one of the most credible trust companies and has established major partnerships with the likes of Binance, whom it partnered with to create the BUSD stablecoin (currently the 3rd stablecoin in the world).

Cons

• Tokenized Assets, Not Actual Gold – Users investing in PAXG tokens are investing in tokenized gold assets. Essentially, PAXG is a gold-backed cryptocurrency that is pegged to gold prices. Users can, however, redeem their tokens for physical gold.
• Restricted Physical Redemption of PAXG – Users wanting to redeem PAXG tokens for physical gold bars are restricted because gold bars are only available for redemption in the UK.