PAX Gold (PAXG)$2,654.90
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PAX Gold current price is $2,654.90 with a marketcap of $507.40 M. Its price is -0.24% down in last 24 hours.
Paxos Gold (PAXG) is a crypto asset backed by real gold reserves held by Paxos, a for-profit company based in New York.
Each PAXG token is redeemable for 1 troy fine ounce of gold custodied in vaults by Paxos and its partners, and its market value is meant to mirror the physical gold it represents.
Paxos developed PAXG as a token on the Ethereum blockchain, meaning it can be exchanged for other crypto assets and secured by owners using cryptographic keys.
To ensure it continually maintains its reserves, Paxos undergoes monthly audits to attest that its supply of PAXG tokens matches the amount of gold it holds. Users can also redeem PAXG for gold bullion bars at any point in time, should they choose too.
Of note, PAXG tokens are divisible up to 18 decimal points, and smaller amounts of gold can be redeemed through a network of physical gold retailers worldwide.
Who created Paxos Gold?
Founded in 2012 by Charles Cascarilla and Rich Teo, Paxos is a startup specializing in the building of infrastructure for the exchange of cryptocurrency.
In 2018, Paxos released Paxos Standard (PAX), a crypto asset backed 1:1 with a reserve of U.S. dollars stored by Paxos in U.S. bank accounts. Paxos Gold was launched in 2019.
PAXG is now backed by gold secured in Brinks vaults and held in custody through the Paxos Trust Company.
How does Paxos Gold work?
Paxos Gold runs on the Ethereum blockchain, and its transactions operate according to the smart contract rules set forth by that network.
The company charges a small fee for the creation and destruction of PAXG tokens (around 0.02%). There are also on-chain fees users pay for moving the tokens on Ethereum.
Notably, Paxos monitors and surveils every PAXG transaction using third party analytical tools. This is done in an attempt to investigate potential instances of fraud and money laundering.
Finally, there are also regular smart contract audits, where developers scrutinize code to identify bugs and vulnerabilities.