PAX Dolar is an innovative vision in the cryptocurrency sphere. Whereas most cryptocurrencies are pegged with risks and are considered highly risky, PAX was created to provide stability.
What is The PAX Dollar?
The PAXOS Standard was the prior name for the PAX dollar. Charles Cascarilla and Rich Teo founded it in 2018. It is a stablecoin and an ERC 20 token of the Ethereum blockchain. A stablecoin is a unique class of asset used to provide stability to a volatile class of assets or the fiat currency it is pegged to.
Since cryptocurrencies are usually considered a risky asset class, it isn’t easy to maintain investments confidently. That is where PAX Dollar comes in. The company behind the coin, Paxos Trust Company, LLC, has every token of PAX Dollar pegged to one USD coin.
The company is regularly audited by smart contract auditors of blockchain and US auditing companies. The New York State Department of Financial Services has granted PAX dollar a charter, allowing them to provide regulated asset services in cryptocurrency.
What is The Purpose of The Pax Dollar?
Paxos dollar was always created to provide the stability of the USD to crypto coins. Since Pax is pegged to the USD, it will still have the same stability as volatility if it is attached to some other cryptocurrency. In addition, the coin also provides stability to the fiat currency, dollar, which is helpful to combine blockchain technology and real-world currencies.
The coin’s uniqueness has made it possible for adoption across various crypto asset classes and much more. But, since the Paxos Dollar is an ERC 20 token issued by the Ethereum blockchain, fees are attached. The transactions on the Ethereum blockchain take a small transaction fee, also known as the gas fee, which makes it possible to maintain the various nodes of the network securely.
But other than the small fees, one can easily exchange USD to PAX dollars, which can then be used to exchange it for any cryptocurrencies or tokens. The exchange can be done quickly using an exchange platform or Alligator crypto exchange aggregator, which will offer the best prices and most security. Many countries or regions may have apprehensions towards the crypto world restricting access or trading of the coins. With the usage of PAX, the process is simplified and can be used easily to enter the crypto market.
Price Prediction For PAX Dollar
PAXOS Dollar is unlike any other crypto coin, and since it is backed by 1.00 USD for each coin, the price of PAX will never change. That is the base protocol on which the token was created. Depending on the trading volume, it can go down or up by $0.001.
So whether the year is 2022, or 2025, or 2030, the price of PAX remains the same. But if you still want to keep an eye on the price of PAX, the pax price index can be helpful.
So, it can be understood that the PAX dollar is not a fair coin for investments. But instead, it is used to provide stability to other cryptos and a portfolio. So, if you feel you want to exchange from a volatile cryptocurrency to a stable USD at any point in time, PAXOS is available to suit the need.