There are many cryptocurrencies that always fluctuate, sometimes their prices are high and sometimes they are low. Everything can happen at any time because cryptocurrency prices are very volatile. Then an innovation appears to overcome this, the solution is stable coins.
Stable coins are cryptocurrencies whose price is pegged to the price of a certain commodity in the real world so that the price of stable coins always follows the price in the real world. These commodities are assets that we often trade in everyday life in the real world, such as fiat currencies and precious metals like gold. Fiat currencies and gold were chosen as benchmarks because they have very low price fluctuations, unlike cryptocurrencies.
Currently there are various types of stable coins out there, such as Tether (USDT), DAI, USD Coin (USDC), TrueUSD (TUSD), Paxos Standard (PAX), Digix (DGX), and many more. Today I will explain about one of the stable coins called Paxos Standard (PAX). What is PAX ?
Paxos Standard (PAX) is an ERC-20 token that build on ethereum blockchain and is used as a stable coin. The PAX token was created by Paxos, company founded by Charles Cascarilla and his team in 2012 in New York. Each PAX token has the same price as 1 USD and both can be reversibly exchanged.
In simple terms, a PAX token will be generated when the user sends a certain amount of USD to the issuer and then the issuer will send PAX to the user, while the USD will be deposited in their account, and vice versa. On the official website Paxos, you can buy PAX tokens using USD or exchange PAX to USD with a minimum conversion value of $ 100. Paxos also gives users the freedom to make purchases or withdraw PAX-USD without additional cost.
PAX tokens can maintain the stability of your investment capital before you decide to invest again. As we know, cryptocurrency prices are very volatile. PAX token is a solution that you can choose to overcome this case. Paxos has successfully collaborated the fiat USD value into PAX token in digital form that can be traded easily and safely on various exchanges. To maintain trust and transparency, Paxos deposits their USD in one of the most trusted banks in the United States. The savings are also credibly insured with a well-known insurance company in the United States.
PAX currently has a market cap of $ 791.34 million. There are more 150 exchanges that trade PAX token, Binance, Coinsbit and HitBTC are the exchanges that most actively trading this token. On these exchanges, PAX tokens have also been paired with other well-known cryptocurrencies such as BTC, ETH, XLM, XRP and BNB. As an ERC-20 token on the ethereum blockchain, PAX can be stored securely in any Ethereum supported wallet, such as MyEtherWallet, TrustWallet, MyCrypto, Trezor, and Ledger. PAX token is also supported by high security and every user who will trade PAX must first verify KYC.
For additional information, I also visited the coingecko website to find out about PAX tokens. Here are some pictures I took from the website.
from some of these images, we can know and conclude that the PAX token does have a stable value of around $ 1 since it was first launched which is proven on the PAX chart. The highest PAX price is $ 1.13 and the lowest is $ 0.908. PAX currently has a market cap of $ 791,337,131 with a trading volume of $ 71,624,567. And currently there are hundreds of exchanges that have added PAX for trading in their exchanges.
Thank you for reading and reviewing my post !!!
Hi @torressteem
Thanks for attending the 7th -Crypto course on stable coins and for your effort in doing the given homework task.
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Good work. Well researched on PAX stable coin.
Homework task
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