Learning about stable coins has been really fun. I never thought learning could be fun but @yohan2on has proved that to be wrong. The last lesson on the demerits of stable coins was really informative. It goes to show that not all that glitters is gold. Even stable coins, as “stable” they are also have their problems. But that’s by the way...
Write about any one of the following Stable coins
USD Coin (USDC)
Paxos Standard (PAX)
Let’s get into it, shall we?
A brief history
The Paxos Standard stablecoin (PAX) was created and launched in September 2018 by Paxos Trust Company. Paxos Trust Company is a Tech company that was founded in 2012 by Charles Cascarilla (CEO) and Rich Teo. Paxos Standard was the first crypto launched by Paxos before PAX Gold was launched in 2019.
Just like Dai, PAX was launched on the Ethereum blockchain and are issued as ERC-20 tokens.
It is backed up by funds in US domiciled accounts owned by Paxos and insured by the Federal Deposit Insurance Corporation (FDIC). Paxos distinguishes itself within the blockchain industry as a trustworthy issuer because it is licensed as a limited purpose trust company. " Thestreet.com
By this, we can easily say that PAX is a fiat backed stablecoin.
With a market cap of $792 million as of writing, PAX is currently No. 6 on the list of largest stablecoins right behind TerraUSD according to coincodex.com as shown below.
The coin is special because it can be exchanged directly for USD on the blockchain.
The Paxos Standard tokens (PAX) are issued as ERC-20 tokens on the Ethereum blockchain and are collateralized 1:1 through the USD held in Paxos-owned US bank accounts.
PAX aims at reducing the gap between the dollar and blockchain technology by integrating swift inflow and transfer of digital currencies anywhere and anytime.
Paxos Standard statistics as of writing
The Paxos DApp
From my research, PAX has its own DApp by name Paxos Standard with website paxos.com.
Exchange platforms to get Paxos Standard
- Bittrex, etc.
The PAX is a growing stablecoin with an innovative approach and clear goals. Its popularity has been of the increase with evidence of its market cap boost from $220 million to approximately $790 million in under a year. Although it is lower in ranking than the previous coin I wrote on (Dai), it is still a force to be reckoned with.
Special thanks to @yohan2on.