Paxos is impressive and apparently one of a kind. That’s one of the few projects that has issued a token backed by gold. Therefore, it seems that investments on this platform will certainly not be a scam. However, in the reviews you can find some negative opinions about the platform. Let’s try to figure out what the problem is here.
- Paxos General Information
- Registration and Client Portal Review
- Paxos Trading Conditions
- Account Types Review
- Trading Platform
- Paxos — Deposit and Withdrawal of Funds
- Is Paxos a Scam?
- Legal Information and License
- Paxos.com Domain Info
- Contacts Review
- More Details
- Pros and Cons
- Frequently Asked Questions (FAQ)
Paxos General Information
|Address||450 Lexington Avenue Suite 3952 New York NY 10017 United States|
Registration and Client Portal Review
We can’t say anything bad or particularly good about the official Paxos website. It is quite standard for all cryptocurrency projects. There is a simple design, a lot of self-promotion and meaningless background pictures. On the other hand, there is enough important information here, including legal information. The project services and terms of cooperation are also described.
You can register on the Paxos website in several stages. To begin, specify your email address and come up with a password for authorization. You can also use a Google account to log in.
Then a link will be sent to your email that you need to follow to continue registration. After clicking on it, you will need to enter your username and password again. And then the system will ask you to pass multi-factor authentication. You will need to open the authentication app on your smartphone and scan the image, and then enter a six-digit code in the appropriate field.
Then you have to choose registration as an individual or institution and continue the process. Fill out a detailed form with personal data, including:
- First and last name
- Date of birth
- Information about citizenship and place of residence.
Then the Paxos system will immediately offer you to pass verification.
Paxos Trading Conditions
Paxos is a platform based on blockchain technology that creates an open financial system. The company provides services for individuals and legal entities.
Account Types Review
Paxos suggests that institutions add cryptography to their working apps. Paxos USDP and BUSD stable coins are provided for payments, funds transfers, and settlements. Their cost is equivalent to a dollar.
The functions of the native token include:
- Transfers between accounts
- Conversion and transfer of fiat funds
- Payment to users, etc.
Customers can also trade cryptocurrencies on the itBit Digital Asset Exchange. The New York Department of Financial Services (DFS) is responsible for the security and reliability of the service.
The funds will be stored in a cold wallet. The founders of Paxos guarantee that the exchange and customer’s assets will not be subject to hacker attacks. Truthfully, it is difficult to understand how such guarantees can be given at all if the cold wallet is not with the user, but with the company.
Traders may have a question: how are itBit Digital asset exchange and Paxos connected? In the first case, we are talking about a trademark, and in the second — about the name of the management company.
When crypto-trading for a large amount, the founders offer constant liquidity and competitive spreads. However, the reviews say that other trading platforms have more favorable conditions.
The exchange has a simple commission structure. Clients whose trading volume for 30 days is less than $15,000,0000 pay:
- From 7.5 to 25 bps as a maker
- And from 17.5 to 35 bps as a taker.
One basis point (bps) is equal to 1/100th of 1%. Traders whose turnover exceeds the amount of $ 15,000,000 are entitled to a discount of 3 bps.
The website does not say which platform is used for trading on the exchange. You can see which options the company offers only after multi-level verification. It’s not too convenient. Who knows, maybe the trading software is not very good. It would be better if the project gave customers the opportunity to get acquainted with the trading platform first.
Paxos — Deposit and Withdrawal of Funds
There are not so many deposit options. Paxos offers to fund your account using cryptocurrency or wire transfers. They don’t mention any money withdrawal at all. Even in the FAQ section, these issues are not covered.
Verification on the site is very difficult. You will need to upload standard copies of documents. Among them, an identity card, a certificate of residence (utility bill). You may also need a bank statement and other documents at the discretion of the company. At the same time, Paxos has quite strict requirements for the quality of documents. That’s why the check may take several days.
Is Paxos a Scam?
Since this project is regulated by the DFS of New York, it is impossible to call this company a scam. However, before starting to cooperate, you need to weigh the pros and cons.
Legal Information and License
Management company of Paxos is registered in New York, USA. With its legal data, the company has no problems. It is regulated by the DFS of New York and even cooperated with the SEC on the issue of releasing coins to the market.
Paxos.com Domain Info
We checked the domain and also found no problems with it. It was established in 2002. Of course, Paxos did not immediately buy it out, because the company has existed only since 2012.
There is a phone number among the company’s contact details. The email address for contacting support is not specified. Also, customers say that they have to wait quite a long time for a response to requests. And some even accuse the support staff of incompetence.
There are several additional factors that we should note. Firstly, there are too few trading pairs on the exchange, which is provided by Paxos. Their number does not reach even a dozen. Secondly, the company does not provide leverage. You can only trade on the spot platform.
We should also say that despite the loud statements about stablecoins, there are also some gaps here. The company claims that the price of USDP is always equal to one dollar. However, this is far from the truth. The price of a stablecoin often goes down to 98 cents, and in some cases even lower. That is not very good either for trading or for long-term investments.
Pros and Cons
- A license.
- Long-term working.
- Very difficult verification.
- There is no margin trading.
- Not a lot of services at all.
- It is difficult to contact technical support.
- There are negative reviews.
Frequently Asked Questions (FAQ)
The company offers to invest in stablecoins and other projects, as well as trade on its own crypto exchange.
Paxos is a provider of a USDP stablecoin whose price is equal to one US dollar.
The company is regulated by the DFS of New York, so you can invest money here.