Bitcoin Global News (BGN)
October 16, 2018 -- ADVFN Crypto NewsWire -- Over the last year,
the most well-known Stablecoin which claims to be pegged to the US
dollar, has been a controversial one.
Now, that might be about to change.
Last month, two potential competitors emerged, with the Gemini
dollar seeming to lead the charge. What you might not have realized
is that the Paxos Standard (PAX) was bringing up a close second and
has continued to grow.
According to Coindesk, both PAX and the Gemini dollar are currently
regulated by the New York Department of Financial Services. Both of
them also reportedly meet the definition of being qualified
custodians, which essentially also means that they can trade
Cryptocurrencies legally and under the regulatory eye of the
While, for now, the Gemini dollar appears to be tied to their
products, the Paxos Standard is directly connected to the Ethereum
blockchain. In addition to this, it is listed on the most popular
Crypto exchange, Binance, as well as others. The Gemini Dollar, on
the other hand, has the same weight, minus the Binance
Given that we have spoken about the Gemini dollar with you before,
for now, we will stick to the Paxos standard for a very specific
reason. Suffice it to say, for now, that with Gemini, your US
dollars are insured to a point, with restrictions that you can find
on their website.
With Paxos, all investments appear to be fully insured by FDIC
member banks, which means that in the event of a catastrophic
occurrence in which customers lost funds, Paxos could replace these
funds quite easily.
What is perhaps even more important is that contrary to Tether’s
apparent refusal to fully audit its reserves, Paxos has already
done so, less than a month after its launch. The September 28th
audit indicated that they were telling the truth at that time,
given that all of their issued coins were backed on a one to one
basis by US dollars.
Because we already have the knowledge of Tether’s recent,
significant market dip, the logical question then becomes: has the
embattled project reached its end? Paxos claims to have
achieved what is essentially the quickest level of Stablecoin
adoption in history, with Monday October 15 being the day at which
the platform reached $50 million in issued coins. Due to the fact
that they have reached this level in only about a month, it appears
that they are poised to unseat industry giants.
The only question is: can they sustain this level of growth over
the long term?
BY: BGN Editorial Staff