Review on PAX Gold by Japheth Ayuba
Asset backed Gold token
The PAX Gold PAXG is an Ethereum asset backed by real Gold held in secured vaults in England and is issued by Paxos Trust Company. The Paxos Trust Company is an authorized and regulated company by the New York Department of Financial Services which increases it's level of credibility. To add to it's level of transparency, the company is being audited by an external auditing firm monthly to confirm its backing of real Gold. Each PAXG coins is pegged to a ratio 1:1 to a Troy fine Ounce of Gold which means for every holder of this token, is a holder of real Gold but on a Blockchain. As an ERC-20 token, the token is accessible on am Ethereum wallet that supports ERC-20 token. Being of real gold value, the PAXG coins are redeemable for real gold or USD in the United States and Canada. There is no custody fee charged for holding this token but commissions are paid for creating and burning of PAXG tokens. There is also withdrawal fees in percentage of the tokens value. The token is also traded on many exchanges with good liquidity paired against it and a good coinmarket ranking. On the company's website, users can purchase fractions of Gold with an estimated value of $20. This token with a real gold value gives a holder the essence of holding real gold and is so recommended for individuals to hold without cumbersome needs of storing the Gold in a vault
Pros
- The PAXG is a Gold backed token issued on the Ethereum Blockchain
- It's issuing company; Paxos Trust is an authorized and regulated company by the New York Department of Financial Services
- There is a monthly financial audit of the company's gold reserve by an external auditing firm to confirm its backing and real gold value
- The PAXG can be redeemed for real gold and Fiat in the US and Canada
- There is no custody fee for holding the tokens
- Offers low minimum gold purchase of an equivalent value of $20
- The token can be traded on Binance, Kraken, Bithumb, Hitbtc etc.
Cons
- Commissions are charged for creating and burning PAXG coins
