Review on PAX Gold by Benaiah A. Akinlade
PAX Gold: Giving you a physical golden feeling of holding cryptocurrencies
One major setback usually suffered by cryptocurrencies is the lack of physical evidence of the token you hodl. There is always a fear of the unseen, surrounding crypto. This shortcoming brought about the introduction of physical assets backed token which allows you to hodl a crypto token backed by physical assets. An example of such physical asset is Gold.
PAX Gold (PAXG) is one of those crypto tokens that is backed by physical assets (Gold) where a token of PAXG is worth one fine troy ounce (t oz) of gold bar whose value is the same as the real market value of physical gold. It is an ERC20 token of the Ethereum blockchain.
The minimum purchase of PAX Gold you can make on the Paxos website is 0.01 PAXG which is worth around USD 15.
If you own PAXG, it automatically means you have a physical gold.
PAX Gold token is handled by more than 20 vaults, crypto exchanges, crypto wallets, and lending platforms
. As a PAXG holder, you can monitor your token by looking up the serial number and token value and characteristics by entering your ERC20 wallet address on the PAXG search box
.
This token is confidently thriving on the stability of Gold.
Pros
- PAXG is a token that is approved and regulated by the DFS
- You can convert your PAXG for fiat currencies, or for physical gold
- PAXG is acceptable anywhere ERC20 tokens are supported.
- As a customer, you have fractional ownership of physical gold bars.
- You can trade PAXG against other digital assets on popular crypto exchanges.
- There is a monthly audit by a nationally ranked auditor for attestation to the matching supply of PAXG tokens and underlying gold to ensure transparency in the dealings of the company on the tokens.
- Gold tokens are secured in the custody of Paxos Trust Company which is regulated by Financial arm of the New York State Department.
Cons
- The token needs more popularity
- ERC20 blockchain transaction fees are high
