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What Is Pax Gold (PAXG)?
Pax Gold (PAXG) is a gold-backed cryptocurrency launched by the creators of Paxos Standard (PAX) in September 2019. As an ERC-20 token operating on the Ethereum blockchain, Pax Gold is tradeable on various exchanges and has become an accessible way for traders to start investing in gold.
The main goal behind PaxG is to make gold more tradable, as the physical commodity is not easily divisible or flexible in terms of transport. This is why Paxos Standard decided to create a cryptocurrency entirely backed by gold. According to the official whitepaper, PaxG was created to allow investors to buy indefinitely small amounts of gold through the cryptocurrency, thus virtually eliminating minimum buy limits for the commodity.
Who Are the Founders of Pax Gold?
Charles Cascarilla is the founder and chief executive officer of both Paxos Standard and Pax Gold. Cascarilla has an extensive capital management career, which led him to explore cryptocurrencies vast possibilities.
After acquiring a degree in finance from the University of Notre Dame, he co-founded Cedar Hill Capital Partners in 2005. This was the start of his career in finance and capital management. Since 2005, Mr. Cascarilla has participated in several traditional and blockchain-based venture capital projects.
What Makes Pax Gold Unique?
With a growing number of ERC-20 tokens available for purchase, Pax Gold stands out because an already established commodity backs it. One of the main goals for PaxG is to make investing in gold more accessible.
The official whitepaper states that “more than USD 3.5 trillion of the total gold available today is used solely for investment purposes;” however, a large portion of it is unavailable to small-time investors. This is where Pax Gold comes into play. Each PAXG token is backed by a fraction of a piece of London Good Delivery gold bar, stored in Brink’s gold vaults, the approved storage company by the London Bullion Market Association.
By combining the security and liquidity offered by blockchain-based cryptocurrency, and the established name of gold as a physical commodity, PaxG brings a new investment opportunity to traders. In addition, PAXG has inspired other cryptocurrency developers to create gold-backed tokens.
How Many Pax Gold (PAXG) Coins Are There in Circulation?
Pax Gold tokens have a one-to-one ratio with the gold storage backing it. This means a PAXG coin for each ounce of gold in rotation covered by the PaxG protocol. In this sense, the amount of PAXG tokens in circulation changes frequently.
At the moment of writing, there are about 60,161 PAXG coins in circulation. However, the number of coins shifts almost by the minute as new investors are introduced, and PaxG increases the available gold supply for backing.
How Is the Pax Gold Network Secured?
In the official whitepaper, Pax Gold CEO Charles Cascarilla explains that the PAXG protocol is created entirely on the Ethereum blockchain and is secured by the proof-of-work (PoW) model. However, PAXG is not exclusively tied to Ethereum and can be launched on other blockchains.
Proof-of-work protocols represent a classic approach to cryptocurrency mining, Bitcoin being the most prominent example. However, Ethereum has recently transitioned to the proof-of-stake (PoS) model, aiming to reduce the resources necessary for token mining, among other things.
Where Can You Buy Pax Gold (PAXG)?
PaxG is an ERC-20 token that can be bought on many established exchanges and stored in various cryptocurrency wallets.
The top recommended exchanges for trading PaxG are Binance, Bitz, FTX and Kraken. However, it is important to note that while Pax Gold is backed by physical gold bars, there still is risk associated with investing and trading PAXG.