Crypto Anonymous posted on July 02, 2019 22:12:24
Considering the regulated nature of this stable coin, it is likely to be trustworthy enough to assume that it won't collapse overnight and is indeed fully backed as it promises. There seem to be some issues for larger traders to redeem their tokens, with extra hassle created by Paxos for this process in individual cases, which seems to suggest some bad faith practices from the company, for more info about this, you can read the linked article and do more research about the legitimacy of these claims being made. Overall I don't expect this to be of any real issue for the average retail trader. However generally I wouldn't recommend keeping much money in any stablecoin for an extended period of time if it isn't absolutely necessary.
Link to the article about hassle around redeeming Paxos tokens: https://www.ccn.com/paxos-standard-hassling-ethereum-traders-trying-to-redeem-stablecoin-pax-for-dollars/
Dr. Doom posted on June 25, 2019 20:20:12
This is a stable coin against US dollars with its reserves in FDIC regulated, US banks. The company is fully regulated and is also the company that launched itBit exchange. PAX is launched in 2018 along with a bunch of competitor stable coins. It is an ERC20 token, so security lies completely with the security of Ethereum. Whether or not this token is censorship resistant or confiscatable: that depends entirely on the whims of US regulators. But in terms of safety of the reserve funds and legitimacy of the team, 100% confidence. Even a senator is part of the board.
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