Introduced by the creators of Paxos Standard (PAX) in September 2019, Pax Gold (PAXG) is a cryptocurrency backed by gold. As an ERC-20 token functioning on the Ethereum blockchain, it is tradeable across numerous exchanges, making it a convenient entry point for those interested in gold investment.
Pax Gold was designed to enhance the tradeability of gold, addressing the challenges posed by the physical commodity's indivisibility and transportability. This was the motivation behind Paxos Standard's decision to develop a cryptocurrency entirely supported by gold. As outlined in the official whitepaper, Pax Gold enables investors to purchase minute fractions of gold through its platform, effectively eliminating the minimum purchase thresholds traditionally associated with the precious metal.
Who Brought Pax Gold to Life?
Charles Cascarilla is the visionary behind Paxos Standard and Pax Gold, serving as their founder and CEO. His extensive experience in capital management sparked his interest in the innovative potentials of cryptocurrencies.
Cascarilla completed his finance degree at the University of Notre Dame before co-founding Cedar Hill Capital Partners in 2005, marking the beginning of his journey in finance and capital management. Since then, he has been involved in various traditional and blockchain-focused venture capital projects.
What Sets Pax Gold Apart?
Amid a growing number of ERC-20 tokens, Pax Gold distinguishes itself by being supported by an established tangible asset. It aims to democratize gold investment by making it more accessible.
The whitepaper highlights that “over USD 3.5 trillion of the total gold available today serves investment purposes;” yet, much of it remains out of reach for smaller investors. This is where Pax Gold intervenes. Each PAXG token corresponds to a portion of a London Good Delivery gold bar, secured in Brink’s vaults, a facility approved by the London Bullion Market Association.
By merging the liquidity and security of blockchain technology with the solid reputation of gold, Pax Gold offers a fresh investment opportunity. It has also sparked interest among other developers to create gold-backed cryptocurrencies.
How Many Pax Gold (PAXG) Coins Are Currently Available?
Each Pax Gold token is directly linked to a specific amount of gold, maintaining a one-to-one ratio. This means the number of PAXG coins matches the ounces of gold available under the Pax Gold protocol. As such, the circulation of PAXG tokens is dynamic and changes frequently.
Currently, there are approximately 60,161 PAXG tokens in circulation. This number can vary almost constantly as new investors join and Pax Gold adjusts the gold supply to support these tokens.
How Is Pax Gold's Network Protected?
According to Pax Gold's whitepaper, the PAXG protocol is entirely constructed on the Ethereum blockchain and protected by the proof-of-work (PoW) system. Nonetheless, PAXG is not restricted to Ethereum alone and can be deployed on other blockchain networks.
The proof-of-work model is a traditional method for cryptocurrency mining, notably used by Bitcoin. However, Ethereum has recently started transitioning to the proof-of-stake (PoS) model, which aims to minimize the resources needed for token mining, among other enhancements.
Where Can Pax Gold (PAXG) Be Purchased?
Being an ERC-20 token, Pax Gold is available on numerous well-established exchanges and can be stored in a variety of cryptocurrency wallets. Some prominent platforms for trading Pax Gold include Binance, BitZ, and Kraken. It's crucial to remember that even though Pax Gold is backed by physical gold, investing in and trading PAXG carries inherent risks. Discover more about purchasing cryptocurrencies here.
