What is Pax Dollar (USDP)?

What is Pax Dollar (USDP)?

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Pax Dollar was launched in September 2018, and it was created by Charles Cascarilla and Rich Teo.

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Stablecoins are digital currencies that aim to reduce the volatility of the stablecoin's price concerning a specific stable asset or a basket of assets. Stablecoins may be tied to either a cryptocurrency or a fixed amount of money. It may even be exchanged for commodities in certain instances.

Pax Dollar enables the use of blockchain assets by mitigating price risk. The Pax Dollar tokens (USDP) are released on the Ethereum blockchain as ERC-20 tokens and are backed 1:1 by USD stored in Paxos-owned US bank accounts.

 

Component Pax Dollar (USDP)
Technologies Smart contracts, OpenZeppelin's Plausible
Market Capitalization $944.5 Million
Open-Source Yes
Consensus Mechanism None
Smart Contracts Yes
Founders/Authors Charles Cascarilla and Rich Teo
Launch Date 2018
Circulating Supply of Coins 945,642,940 USDP
Maximum Coin Supply None
Mining-based Coin? No
Is Pax Dollar a Stablecoin? Yes
Does Pax Dollar have a burn rate? Yes
Does Pax Dollar have a Whitepaper? Yes, the white paper can be viewed here

 

Evolution and Development of Pax Dollar

Paxos LLC, originally iBit, was created in 2012 by three partners, namely Charles Cascarilla, Andrew Chang, and Richmond Two. The enterprise is backed by several venture capital companies, including Liberty City, RRE, and several others.

Paxos joined the American market in May 2015 after obtaining a license from the New York State Department of Financial Services (NYDFS) to issue a stablecoin. Three years later, in September 2018, the Paxos team launched the Pax Dollar (USDP) stablecoin.

Paxos's CEO and co-founder is Charles Cascarilla, who serves on the board of directors of the Association for Digital Asset Markets (ADAM) and is also a partner in Liberty City Ventures.

 Cascarilla was involved in the establishment of Cedar Hill Capital Partners, where he is still a partner. Cascarilla previously employed a portfolio manager at Claiborne Capital Management, a financial analyst at Goldman Sachs, and an analyst at Bank of America.

Rich Teo is Paxos' second co-founder. Before that, he worked at Cedar Hill Capital Partners as a principal/senior analyst. He was also a financial analyst at Citi and a Singapore Armed Forces combat signaller.

Paxos, the firm behind the Pax Dollar stablecoin (USDP), stated in 2022 that it would rebrand the cryptocurrency, and Pax Standard Token was renamed Pax Dollar, with PAX changing to USDP.

 

What makes Pax Dollar unique?

USDP was built and launched on the blockchain of Ethereum as an ERC-20. Pax is 100% backed by US dollars, and at least one US dollar must be held in the Paxos US bank accounts for every USDP that is currently in circulation.

As with other stablecoins such as the US Dollar Coin (USDC), USDP aims to combine the US dollar's long-established stability and trustworthiness with the advantages of a digital currency.

That is, it may be sent instantly, at any given time, and at a near-zero cost to everyone on the earth through the internet. As with other Ethereum-based ERC20 tokens, USDP may be used as computer-controlled digital money in smart contracts, and it can subsequently interact with various decentralized applications (DApps).

Paxos is devoted to regulatory compliance and collaborates with some of the most reputable financial authorities. Additionally, they are audited regularly by reputable businesses that independently certify the USD cash reserves.

The transparency of their auditing procedure is shown on their website, which is updated monthly to reflect the total amount of US dollars held in reserve by Paxos. Paxos reserves are additionally covered by FDIC insurance since they are held entirely in US banks.

 

What are the main uses for Pax Dollar?

The USDP stablecoin with several applications. Among the most advantageous are inflation hedging, volatility reduction, fee elimination on cross-border transactions, and it can also be used as payment for blockchain-based digital assets and cryptocurrencies.

The USDP Stablecoin offers investors a viable alternative to traditional cryptocurrencies. It is not susceptible to market circumstances and hence is not volatile, in contrast to other cryptocurrencies that are.

Secondly, USDP stablecoin is a digital asset that is not deterred or limited by borders, which means that anyone can transfer funds or hold it as a store of wealth. Cryptocurrencies are gaining widespread appeal, and the public is growing more accepting of them, which is why USDP is rising in popularity.

In addition, Pax Dollar also serves as an effective payment method for digital assets as well as a variety of cryptocurrencies that are based on the blockchain. Additionally, this work of art simplifies the process of transforming real goods into digital materials.

While Pax Dollar is still in its infancy, most businesses that accept cryptocurrencies as payment methods are open to USDP. With the growing popularity of cryptocurrencies, stablecoins are certain to have a bright future in the E-commerce market.

 

What is the future potential for Pax Dollar?

As a highly regulated and legal cryptocurrency, USDP intends to attract bigger and more renowned institutional investors and financial firms who remain sceptical of most cryptocurrency start-ups.

USDP is also being developed by the Paxos team to assist in settlement of more conventional assets such as commodities, equities, real estate, and even more exotic assets such as fine art and collectables.

Finally, there is optimism that USDP may be utilized by huge ‘unbanked' groups to get the advantages of digital money while avoiding instability.

 

Price analysis on Pax Dollar

Pax Dollar was initially launched in 2018, and its price analysis over the past four years are as follows:

 

  2018 2019 2020 2021 2022 to date
USDP Price High $1.02 $1.02 $1.04 $1.01 $1.00
USDP Price Low $0.98 $0.98 $0.97 $0.99 $0.99
Market Cap $264.52 $266.68 $264.13 $1.42B $940M

 

Price prediction on Pax Dollar

The Pax Dollar is in a 1:1 ratio with the value of the United States, which means that its value does not increase above or decrease below the $1.00 mark, as seen with its price history.

 

Which wallets are the best option for storing Pax Dollar?

The best options to store, send, and receive USDP are as follows:

  1. Ledger Nano S
  2. Ledger Nano X
  3. Trezor
  4. MetaMask
  5. Exodus

 

1. Ledger Nano S: The Ledger Nano S hardware wallet is one of the cheapest USDP wallets on the market. Hardware wallets securely store bitcoin and private keys on a physical machine.

What distinguishes Ledger's wallets is its operating system, BOLOS. BOLOS is incorporated into the device and safeguards the core against assaults from viruses and programs running on the user's computer or device.

 

2. Ledger Nano X: The Ledger Nano X is the successor to the Ledger Nano S, offering more capacity and superior security at a more premium price than its predecessor.

 

3. Trezor: Trezor was the first physical wallet designed only for Bitcoin and has subsequently been modified to include more tokens, including USDP. Trezor securely keeps tokens on an embedded chip that is enabled only when the device is connected to a computer and logged in with the user's password.

 

4. MetaMask: MetaMask is a desktop and online wallet with extensions for Chrome and Firefox. After installation, the wallet may be used to hold any ERC-20 token and allows for the creation of a Paxos Dollar wallet. The application has an identity vault that enables users to maintain their identities across many websites.

 

5. Exodus: Exodus is a free multi-currency desktop application and a comprehensive mobile wallet that has an aesthetically pleasing user experience. The program is available for download on iOS and Android devices and can be used on Windows, Linux, and Mac.

Exodus accepts over 100 coins, enables the creation of a USDP currency wallet, and has an integrated exchange that enables users to convert USDP at a predetermined rate.

Best Bitcoin Wallets are the same as Pax Dollar wallets.

Where can you buy Pax Dollar?

The exchanges that list USDP will be the same as those that previously listed USDP. These include:

  1. Bitrue
  2. Coinbase
  3. Uniswap (V3)
  4. MXC
  5. Binance

 

1. Bitrue: Bitrue began in early 2018 and first gained popularity owing to its release of an XRP base market, which was quite popular among crypto enthusiasts who pushed the exchange. Bitrue has remained true to its original vision while expanding its offering across other markets and currencies.

 

PROS CONS
Bitrue is secure and offers a two-step sign-in The exchange has some vulnerabilities that could be exploited
There is a flat fee schedule with competitively low fees There are no options to deposit or withdraw funds in fiat
There are more than 160 markets offered Safety is not guaranteed
There are high-interest rates offered for investors  

 

2. Coinbase: Coinbase is a massive crypto exchange with more than 50 million users and trading volumes that exceed $300 billion every quarter. It is one of the largest exchanges according to its 24-hour trading volumes and its coin offering.

There are low fees charged, and the exchange offers an insurance policy against losses incurred from theft. There is also a comprehensive selection of educational resources offered.

 

PROS CONS
The exchange has a high trust score as one of the most reputable crypto exchanges The fees are not as low as competitors
Educational tools are offered Users are not in control of their private keys if they choose to keep their funds in the Coinbase wallet
There is a vast range of digital assets and coins to choose from  
There are robust security measures in place  

 

3. Uniswap (V3): Uniswap V3 is a Decentralized Exchange and the third upgrade on the Uniswap exchange. It was launched in 2022, and the upgrade features higher financial efficiency than the previous version.

 

PROS CONS
Users can swap any ERC-20 tokens on the exchange The DEX does not accept any fiat currency
The design is innovative and user-friendly Gas fees are high
Users can earn crypto by staking their tokens There is always a risk of impermanent loss
Users need not register to use the exchange  
There is adequate wallet support given   

 

4. MXC: MXC is a leading crypto exchange trading platform that endorses innovative and optimistic projects. MXC is a Seychelles-based exchange that has an active and dedicated development team and licenses in five recognized regions.

There are more than 370 coins and over 750 trading pairs offered, with high 24-hour trading volumes on major coins and pairings, providing traders with enough liquidity.

 

PROS CONS
The trading fees are reasonable There are some user complaints 
There is a comprehensive mobile app provided  
There are several innovative features  
There are several convenient payment methods offered  

 

5. Binance: Binance is a cryptocurrency exchange that allows users to trade cryptocurrencies. It supports most of the most widely traded cryptocurrencies.

Binance offers traders a cryptocurrency wallet in which to keep their electronic assets. Additionally, the exchange provides support services that enable customers to earn interest or conduct transactions utilizing cryptocurrencies.

 

PROS CONS
Users can benefit from the lack in an instant and non-instant fees Account verification is tedious
There is an extremely large coin selection The corporate structure is questionable
There are many additional services  
The exchange is the largest and has a high reputation  

You can buy Pax Dollar safely from these cryptocurrency platforms.

Does Pax Dollar use coin burns?

Yes, as with other stablecoins, USDP is minted when coins are purchased and subsequently burnt when they are sold or exchanged.

This process is completely automated using smart contracts.

 

What is Pax Dollar’s largest Competitor?

The largest competitor of Pax Dollar is USDC.

USD Coin (USDC) is a completely collateralized, dollar-denominated stablecoin that was established in 2018 by the Centre consortium of enterprises.

It is built on the Ethereum blockchain according to the ERC-20 standard, which makes it compatible with the most popular wallets and custodial services. It is the second-largest stablecoin in the market-by-market value at the time of writing.

 

What can Pax Dollar smart contracts do?

Paxos Engineering created proprietary smart contracts according to the Pax Dollar. The Paxos team concentrated on developing an asset that was based on the most stable and well-tested smart contract technology available.

The team placed a premium on decreasing the risk surface on the chain. They built multi-signature security off-chain instead of in a smart contract that may be vulnerable to Ethereum network flaws.

These smart contracts are created to be as basic as feasible and to make use of readily accessible standard patterns. A significant distinction between both the USDP smart contracts and the ones used by GUSD and TUSD is that USDP stores the token balances — and all other contract data — in the proxy itself.

In addition, Paxos uses audited smart contracts when issuing and burning tokens. These contracts are verified by Nomic Labs, a smart contract auditor. Withum, one of the leading auditing firms in the United States, checks the reserves regularly.

 

Is Pax Dollar a Good Investment?

Yes, Pax Dollar is a good investment.

The Paxos team saw a need for a currency that prioritized stability over volatility and was autonomous, independent of existing financial institutions.

Additionally, they sought a protocol that combined ease, security, and efficiency. Fortunately, their devotion resulted in the creation of a digital currency that encompassed stability, trustworthiness, and decentralization. 

USDP provides investors with the optimal option to use the token to transact, save, invest, or trade. Users can do this without fearing market volatility or unanticipated malpractices.

Although the USDP stablecoin is built on Ethereum, its transactions are unaffected by Ethereum's high costs and scalability.

Stablecoins are completely convertible to dollars or any other cryptocurrency. This includes major coins such as Bitcoin, Litecoin, Ethereum, and several others.

After acquiring USDP, the user may instantly exchange for other digital coins without the intervention of third parties or the danger of volatile volatility.

USDP has undoubtedly grabbed the cryptocurrency world by storm. In comparison to other stablecoins, only Tether (USDT) and the USD Coin (USDC) can match its success in terms of trading volume and overall operations.

Additionally, liquidity has improved significantly, which has contributed to the currency's appeal. The team behind Pax Dollar continuously works to ensure that there is a cordial relationship with all affiliated financial authorities.

 

What are the differences between Pax Dollar and Bitcoin?

Bitcoin is a decentralized, transparent digital coin that enables direct purchase, sale, and exchange without the need of an intermediary such as a bank. US citizens retain ownership over their cash, and Bitcoin is not just a means of trade but also a respectable store of value, offering investors a high rate of return.

The USDP stablecoin is an ideal borderless digital asset that anybody may transfer and hold as a store of value or wealth. USDP can be used to offset volatility from other digital currencies and can be used as a hedge against inflation.

 

  Bitcoin Pax Dollar
Price change 20/21 +400% 0%
Market Cap $800 Billion+ $944.5 Million+
Past Hacks None None
Popularity Very High Very Low
Altcoin Rank #1 – Original Crypto #91

 

What are the differences between Pax Dollar and Ethereum?

Ethereum is a programmable blockchain where many projects, including USDP, were created and launched. While Pax Dollar cannot compare to Ethereum in terms of project use, objectives, market capitalization, and other factors, there is a reason why Paxos chose to launch the project on Ethereum.

Paxos operates on Ethereum because of the ERC-20 protocol that provides the project with access to smart contracts, ensuring seamless wallet support and a wide range of use cases.

 

  Ethereum Pax Dollar
Price change 20/21 +880% 0%
Market Cap $460 Billion+ $944.5 Million+
Past Hacks None None
Popularity Very High Very Low
Altcoin Rank #2 #91

 

What are the differences between Pax Dollar and Dogecoin?

Dogecoin is a mining-based meme coin that has risen in popularity over the past few years, especially with the support from influential figures such as Elon Musk.

Dogecoin is a medium of exchange that is mostly used to tip content creators on a social platform such as Reddit. USDP is a stablecoin that can be used to make purchases, transfer value, and other functions. It is a hedge against inflation and can be used to counter the volatility in the cryptocurrency market.

 

  Dogecoin Pax Dollar
Price change 20/21 +7,300% 0%
Market Cap $22 Billion+ $944.5 Million+
Past Hacks None None
Popularity High Very Low
Altcoin Rank #12 #91

 

What are the differences between Pax Dollar and NEO?

NEO was developed in China in 2014. NEO was initially called AntShares, and Da Hongfei and Erik Zhan are its founders.

The platform was relaunched as NEO in June 2017, and it is a platform based on blockchain technology, and it facilitates the creation of digital assets and smart contracts.

Pax Dollar (USDP) is an Ethereum-based ERC-20 currency that is regulated and backed by the USD. Pax Dollar combines innovative blockchain technology with the stability inherent in fiat currencies. This results in a stable cryptocurrency that enables instant global transactions.

 

  NEO Pax Dollar
Price change 20/21 +160% 0%
Market Cap $1.70 Billion+ $944.5 Million+
Past Hacks None None
Popularity Medium Very Low
Altcoin Rank #69 #91

 

What are the differences between Pax Dollar and NFTs?

Nonfungible tokens (NFTs) are digital assets that each have a unique value, with no two NFTs holding the same characteristics or value as another. Pax Dollar, on the other hand, is fungible, which means that one USDP has the same value and characteristics as another USDP.

 

What are the differences between Pax Dollar and Solana?

Solana is a decentralized, scalable blockchain network. Pax Dollar (USDP is a fiat-collateralized digital currency that was built on top of the Ethereum (ETH) network. 

 

  Solana Pax Dollar
Price change 20/21 +9,300% 0%
Market Cap $54 Billion+ $944.5 Million+
Past Hacks None None
Popularity Very High Very Low
Altcoin Rank #5 #91

 

What are the differences between Pax Dollar and Litecoin?

Litecoin (LTC) is a cryptocurrency that was established in 2011 and is built on an open-source worldwide payment network that is not governed by any central body.

Litecoin may be used to pay anyone anywhere in the globe without the need for an intermediary to conduct the transaction.

There are various applications for the Pax Dollar stablecoin and inflation hedging, volatility reduction, removing fees on cross-border transactions, and compensation for blockchain-based digital currencies are among the most beneficial.

 

  Litecoin Pax Dollar
Price change 20/21 -8% 0%
Market Cap $8.8 Billion+ $944.5 Million+
Past Hacks None None
Popularity High Very Low
Altcoin Rank #23 #91

 

Is the conversion of 1 USDP to 1 USD at any given time legitimate?

Yes, all USD dollars are kept in reserves, and these reserves are protected by FDIC insurance. In addition, the Paxos Trust Company is regulated by the New York State Department of Financial Services (NYSDFS). The US reserves are audited monthly by a certified independent entity.

 

What is a stablecoin?

A stablecoin is a digital currency that is pegged either to a single or group of underlying assets to keep its price stable with that asset.

These stable assets can either be other cryptocurrencies or they can be fiat currencies, commodities, and others.

 

Is Pax Dollar a stablecoin?

Yes, Pax Dollar is a stablecoin that is fiat-collateralized and pegged to the US Dollar.