Blockchain Investor Analysis

Paxos

Paxos Standard

PAX
Current Price $1.00 (+0.03%)
Paxos Token (PAX) is an Ethereum-powered stablecoin that was launched in 2018 to enable users to hold a dollar-pegged digital currency.

Our Rating:

Market

Problem that it solves

Paxos is an ERC-20 stablecoin pegged to the US dollar that provides price stability for digital currency traders and users.

Customers

Paxos is great for traders and for those who want to quickly convert digital assets into fiat currency without paying exorbitant fees.

Value creation

PAX takes the price volatility out of decentralized digital currencies.

Market structure

The market for primarily composed of digital asset traders but could evolve to include merchants looking for digital payment options.

Market size

The market for a stable dollar-pegged digital currency is substantial.

Regulatory risks

Since PAX is a stablecoin and pegged to the US dollar, it's a low risk for regulation.

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Competitive Advantage

Technology/blockchain platform

Paxos is an ERC-20, which means its developed on the Ethereum blockchain.

Lead time advantage

PAX does not have much of an advantage in its market as it competes with other stablecoins like Tether and USD Coin.

Contacts and networks

While Paxos isn't as well known as some digital coins, it still have the ability to access important players in the digital asset market.

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Management Team

Entrepreneurial Team

Andrew Chang and Charles Cascarilla are part of the Paxos team and have shown a penchant for success in the past.

Industry/technical experience

Paxos CEO Charles Cascarilla has been in Finance for nearly two decades. He alone helps the project team meet the 10,000 hour requirement.

Integrity

Up to this point, Paxos has shown transparency, honesty, and integrity.

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Token Mechanics

Token required

For Paxos to deliver its service as a stablecoin provider, the PAX token is necessary.

Value added

There are several most successful stablecoins in the market, which makes it difficult for Paxos to set itself apart.

Decentralized

Paxos can be frozen, censored, or confiscated by project authorities if they believe illegal activities are occurring.

Token supply

When PAX tokens are redeemed, they are immediately taken out of circulation. PAX only exists when corresponding dollars are available.

Public exchange

PAX is listed on many exchanges, including Binance, OKEx, and CoinEx.

MVP

Users can currently convert US dollars to PAX and PAX to US dollars anytime they want.

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User Adoption

Technical difficulty

PAX is a dollar-pegged stablecoin that runs on Ethereum. Arguably, one of the easiest blockchain ventures to explain.

Halo Effect

Paxos has partnered with Binance and Huobi to bring its token to traders.

Buzz

Paxos only has a few thousand users on social media and are not among the most talked-about stablecoins.

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Overall Score

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Blockchain Investor Analysis

Paxos (PAX) is a dollar-pegged stablecoin that is primarily used by digital asset traders to move in and out of risky digital assets. Its value proposition is clear. However, PAX has the challenge of competing with other stablecoins like Tether and USD Coin, which are currently dominating that market.

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