Review on Paxos Standard by Fanuel PORPORTY
STANDARD PAXOS, is a dollar-backed stablecoin: it is one of the few stablecoins to have received the approval of the financial authorities of New York State.
Stablecoins were the buzzword in the second half of 2018 and, due to the volatility of the crypto market, are an important but equally controversial instrument for trading. In order to meet the high demand, many new stablecoins were launched by various companies during the second half of 2018. One of these coins was the Paxos Standard Token, PAX for short, which is supposed to compete with the controversial but leading stablecoin Tether (USDT).
Paxos describes itself as "the world's first crypto-regulated asset", which is fully secured by the US dollar. The token is issued by the Paxos Trust Company and has been approved and regulated by the New York State Department of Financial Services. As a trust company with statutory fiduciary authority, Paxos Trust Company is therefore able to offer regulated services in the area of cryptocurrencies and virtual goods.
Pros
- Paxos is a trust company regulated by the New York State Department of Financial Services, making it one of the strongest entities in terms of credibility in its ability to support the PAX token with real US dollars.
- Paxos Standard is supported by many major cryptocurrency exchange platforms
- The guarantees held in the reserve bank are certified monthly by an independent auditor.
- A relatively large number of tokens have been issued, which should provide the token with decent liquidity.
Cons
- Centralized - PAX can be frozen, confiscated, or censored by authorities in the event that they believe any illegal activity has occurred or terms and conditions have been broken.
- Privacy - Trading PAX in large amounts on cryptocurrency exchanges will require KYC. In addition to this, any user looking to purchase or redeem PAX with fiat will be required to undergo KYC and submit personal identification documents.
