MEXC Academy : What Is pax Gold?

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Paxos Gold (PAXG) is a crypto asset backed by genuine gold reserves owned by Paxos. It was launched in 2019. Paxos is a startup focusing in providing infrastructure for bitcoin exchanges, co-founded by Charles Cascarilla and Rich Teo. Each PAXG is redeemable for one troy ounce of gold, and its market value reflects the price of physical gold. The ERC-20 token, according to Paxos, is based on the Ethereum Blockchain and may be exchanged for other cryptocurrencies. Its value is directly linked to the market value of the traditional asset because it reflects actual gold.

Paxos conducts monthly audits to maintain reserves and ensure that PAXG offerings are consistent with the Gold Portfolio. The owner of the PAXG token has legal ownership of some of the gold held by the Paxos Trust Company. This is why PAXG holders benefit from physical gold bullion ownership and cryptocurrency ownership. Gold-backed tokens derive their value from giving crypto investors exposure to assets that depend on the price of gold. Finally, this investor also enjoys the unique advantages of cryptocurrencies such as ease of online exchange, portability and compatibility.