Steemit Crypto Academy week 7 Hometask by Professor @yohan2on | Paxos Standard (PAX)

Before i begin with my submission i would like to Thank professor @yohan2on for another lesson on stable coin. In this my assignment post, I will write on Paxos Standard (PAX) .

PAXOS STANDARD

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PAXOS Standard, or PAX, is a stablecoin that was built as a digital US Dollar that could be used to move money in a fast and convenient way. PAX being a hard-pegged stablecoin allows customers to exchange US dollars for Paxos Tokens so as to ‘transact at the speed of the internet’.
It aims to meander the stability of the dollar with the speed of blockchain technology.
They are of the raft of companies trying to offer an alternative to the tether status quo. These include the likes of the Gemini dollar, the coinbase dollar and the True USD etc.
PAX is an ERC20 token was issued on the Ethereum blockchain, however given that is a stablecoin each PAX token will always be worth One USD. This means it could be the ideal coin to huddle crypto gains in without converting to fiat.

We all know the of the questions that are swirling around tether so this could be a more attractive option now.

IS IT SAFE TO TRADE PAXOS

PAX is one of the stablecoin that has the safest and trusted partners to work with. PAXOS is officially registered as a New York Trust Company and hence are regulated by New York State Department. The team behind PAXOS is open and transparent. they have diverse backgrounds at firms including Goldman Sachs, Google and Liberty city ventures.

PAXOS smartcontract have been audited by nomic labs and the bank account reserves will be audited by the withum auditing firm.

RISK INVOLVED

Because PAX is still issued and redeemed by a centralised authority, you do run the risk that they restrict Redemption. It is still in their discretion as to whether or not they decide to redeem them, This is not isolated to PAXOS though as you face the same risk with the USDC and Gemini dollar and a side note, there are decentralised alternatives such as make a douse DAI.

TRADING

In terms of trading, PAXOS has become the most widely adopted crypto currency in the fastest time frame with support from over 24 exchanges and 12 OTC desk so far.
Because PAX offers immediate settlement and verified reserves, it has rapidly become a trusted stablecoin among traders and there is a healthy volume across a number of exchanges and hence liquidity for the token is quite strong. You can also trade other cryptocurrencies for PAX on the company it bits exchanges which allows you to convert the coins with no fees and here's a fun fact, there have been times in the past where mispricing of of these tokens has led to profitable arbitrage opportunity on a particular exchange.

Storage of PAX tokens are pretty straightforward given that they were issued on the Ethereum blockchain. They can be stored in any wallet that supports ERC20.

HOW TO BUT PAXOS USING COINBASE

*Setup your Coinbase account and sign in.

• Make your first purchase bitcoin or ethereum at Coinbase

*Use your Bitcoin or Ethereum you purchased to purchase Paxos Standard (PAX)

So in conclusion, PAXOS Standard is a well regulated and transparent alternative to tether. It has been actively adopted and accepted and traders are using the coin as intended a stable store of crypto game while the centralised nature of the token is a risk they appear to have had full control of honouring reductions.

I will conclude by thanking @yohan2on for continuing his lecture on stablecoin because it has help me to know more about crypto currency. And i hope my task for homework-7 will be selected and approved. Thank You THANK YOU FOR READING @yohan2on