PAX Gold (PAXG) — a digital asset. Each token is backed by one troy ounce of London's 400 ounce gold bar, held in the Brink vaults.
Contents:
- About the PAX Gold (PAXG) platform
- Key features
- Security of PAX Gold (PAXG)
- About the platform token
About the PAX Gold (PAXG) platform
The main goal of Pax Gold — to make gold more available for sale, as the physical commodity is not easily split or flexible in terms of transportation. This is why Paxos Standard decided to create a cryptocurrency, fully backed by gold. According to the white paper, Pax Gold was created to allow investors to buy unlimited amounts of gold through cryptocurrencies, thereby virtually eliminating minimum restrictions on the purchase of goods.
As an ERC-20 token, powered by the Ethereum blockchain, Pax Gold is traded on a large number of exchanges and has become an affordable way for traders to start investing in gold. Charles Cascarilla is the founder and CEO of Paxos Standard and Pax Gold.
Key features
Based on the project documentation, which states that "more than 3.5 trillion US dollars of all the gold available today is used solely for investment purposes. However, most of it is not available to small investors. This is where Pax Gold comes into play. Each PAXG token is backed by a piece of London good delivery gold bar, held at Brink gold vaults, which is an approved custodial company of the London bullion market association.
Project advantages:
| 1 | Investing in gold is more affordable. |
| 2 | On the Paxos platform, customers can convert their tokens quickly and efficiently. |
With the combination of security and liquidity, offered by blockchain-based cryptocurrencies, and the established name of gold as a physical commodity, Pax Gold provides new investment opportunities for traders. PAXG has inspired other cryptocurrency developers to create gold-backed tokens.
Security of PAX Gold (PAXG)
The PAXG project is entirely built on the Ethereum blockchain and protected by a proof-of-work (PoW) model. However, PAXG is not exclusively tied to Ethereum and can be launched on other blockchains as well. Proof-of-Work protocols are a classic approach to cryptocurrency mining, the most prominent example of which is Bitcoin. However, Ethereum has recently begun moving to a Proof-of-Stake (PoS) model, seeking, among other things, to reduce the resources, required to mine tokens.
About the platform token
There are about 60 thousand PAXG coins in circulation. However, the number of coins changes almost every minute as new investors appear, and Pax Gold increases the available gold for collateral.
The token can be bought on many well-known exchanges and stored in a variety of cryptocurrency wallets. The most recommended exchanges for trading Pax Gold are:
- Binance;
- BitZ;
- FTX;
- Kraken;
Pax Gold tokens have a one-to-one ratio with backed gold vault. This means that for every spinning ounce of gold, covered by the Pax Gold protocol, there is a PAXG coin. In this sense, the number of PAXG tokens in circulation changes frequently.