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What Is Pax Gold and How to Buy PAXG Coins?

2024-02-22 10:30:15

In our commitment to broaden our offerings continually, we are introducing a new project addition - PAX Gold. PAX Gold (PAXG) by Paxos is an ERC-20 cryptocurrency that is pegged to physical gold to enable fractional ownership and can be redeemed for gold. PAXG solves key problems in the gold market, such as the difficulty of owning, trading, and storing physical gold, by combining the tangible value of gold with the efficiency and accessibility of digital assets.

In this article, you will learn what Pax Gold is, understand the problem it solves, and how it does so. Additionally, we will explore the PAXG token, delving into its tokenomics and statistics. We will conclude with a concise guide on how to buy or trade PAXG on CoinEx.

What Is PAX Gold and How Does It Work?

Gold is a metal valued for its scarcity, chemical stability, and beauty. For thousands of years, gold has been an essential part of the world financial system; it is used in various trading forms and as a stable, non-volatile reserve in unstable economies. Paxos, a blockchain-based organization, specializes in developing regulated blockchain and digital asset solutions for global finance. Paxos is on a mission to digitize the world's assets, including gold, ensuring they can be efficiently and securely redeemed at any time.

Prior to the solutions offered by Paxos, the gold market faced many trading setbacks. There was no investment-grade physical gold product that was easy to own or trade. Storing and maintaining purchased gold was expensive for buyers. Other challenges included the indivisibility of gold, its cumbersome nature for transportation, and difficult to trade and leverage.

Before the development of PaxGold, investors could trade in wholesale unallocated gold, gold ETFs, or gold futures, which were derivatives or securities representing synthetic gold value, but not ownership of the actual gold. This meant that the price of liquidity and fungibility for gold investors came at the cost of not owning the real, physical asset. 

Paxos revolutionizes the gold market with PAX Gold (PAXG), a digitized version of high-quality, LBMA-accredited physical gold bars, tokenized on the blockchain to enable fractional ownership. Each PAXG token represents one fine troy ounce of a specific serialized gold bar, accessible to anyone in units as small as 18 decimal points, and is built on the Ethereum blockchain for global accessibility and tradability. 

Paxos distinguishes itself as a credible organization in offering the Pax Gold Token (PAXG), an ERC-20 token that is tradable and can be redeemed for gold. This distinction is partly due to its status as a regulated financial institution and qualified custodian under the NYDFS, coupled with strong ties to major players in the gold market, such as the LBMA, which guarantees high-quality gold and secure storage. Additionally, Paxos' proven expertise in creating asset-backed tokens, like Paxos Standard and HUSD, enables them to effectively combine the benefits of physical gold with the efficiency of digital assets to address modern challenges and limitations in trading gold.

What Is PAXG Token, and What Are Its Utilities?

PAX Gold (PAXG) is an ERC-20 token on the Ethereum blockchain, issued by Paxos, utilizing a standard protocol that allows for easy integration with Ethereum-supporting exchanges and wallet applications. This approach offers numerous benefits including the security and availability of the Ethereum network, publicly verifiable token supply, broad adoption across various crypto stakeholders, reduced dependency on single authorities due to decentralization, and access to a global market.

The PAX Gold (PAXG) token offers several utilities, including:

  1. Gold Ownership: PAXG allows anyone to easily acquire gold by buying PAXG tokens on the Ethereum exchange that can be redeemed for physical gold. 
  2. Redeemability: PAXG tokens can be redeemed for Gold. To redeem a PAXG token for gold, the holder must have a sufficient amount of PAXG tokens equivalent to at least one fine troy ounce of gold. They can then initiate the redemption process through Paxos, which involves verifying their identity and completing necessary KYC. 
  3. Tokenized Gold: PAXG token is the tokenized version of physical gold on the Ethereum blockchain. 
  4. Integration with Digital Platform: PAXG makes it possible for gold to be traded in the digital platforms like centralized and decentralized exchange. 
  5. Investment Option and Portfolio Diversification: The PAXG token is an investment option for investors who want to invest in gold, and it also helps to diversify an investor's portfolio.

PAXG Tokenomics

Pax Gold tokens are backed by gold storage in a 1:1 ratio. This means that for every ounce of gold in provided by Paxos Gold protocol, there is a PAXG token. As a result, the number of PAXG tokens in circulation fluctuates based on gold reserves held by Paxos. 

PAXG Token Statistics

Token Symbol: PAXG

Token Supply: 202,166 PAXG

Market Capitalization: $405 Million

Trading Price: $2,004

Cryptocurrency Rank: #150

How to Buy and Trade PAXG Tokens?

CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including PAXG, users can now trade easily and seamlessly. To purchase PAXG token on CoinEx, follow the steps below.

  1. Create an Account: Start by signing up for a CoinEx account. 
  2. Deposit Funds: After logging in, deposit funds into your CoinEx account using any supported cryptocurrencies or deposit methods available on the exchange. Having funds in your account enables you to execute trades seamlessly.
  3. Navigate to PAXG Trading Page: Once your account is funded, navigate to the dedicated PAXG trading page on CoinEx. You can locate PAXG trading pairs on the spot trading page using a search box and enter the term "PAXG" to find the associated pairs.
  4. Choose a Trading Pair: Select the trading pair PAXG/USDT to trade PAXG against USDT (Tether).
  5. Specify the Purchase Amount: The next step is to specify the number of PAXG you wish to buy. You have the option to either buy them at the current market price or set a limit for your desired buying price on the trading page.
  6. Execute the Trade: With the specified amount, proceed to execute the trade. Confirm the details, and if you are satisfied, submit the order. 

By following these comprehensive steps, you can easily trade PAXG tokens on CoinEx, taking advantage of the available trading pairs.

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