Review: Is it a SCAM?

Paxos - logo
2 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. General Information

Phone Number 1-800-342-3736
Address 450 Lexington Avenue Suite 3952 New York NY 10017 United States
License NYDFS
Minimum Deposit
Assets Cryptocurrencies
Leverage None
Trading Platform Webtrader

Registration and Client Portal Review

We can’t say anything bad or particularly good about the official 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. website

You can register on 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. Registration

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 system will immediately offer you to pass verification.

Individual form

Trading Conditions

So, it 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

The project 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 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 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.

Trading Platform

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.

Deposit and Withdrawal of Funds

There are not so many deposit options. 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, the prokect has quite strict requirements for the quality of documents. That’s why the check may take several days.

Is 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.

Management company of 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. Domain Info

We checked the domain and also found no problems with it. It was established in 2002. Of course, founders did not immediately buy it out, because the company has existed only since 2012.

Paxos - domain info

Contacts Review

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.

More Details

There are several additional factors that we should note. Firstly, there are too few trading pairs on the exchange, which is provided by 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.
4.4 TOTAL SCORE Summary

Paxos - favi

It cannot be said that this project is a scam. At the same time, the variety of services on the site leaves much to be desired. Trading on this exchange will also not be as convenient as on other platforms with more diverse instruments. Perhaps it is better to look for other options for investment.

Website information content 5
Client Portal 5
Trading conditions 4
Trading platform 3
Deposit and withdrawal 3
Verification 3
Extra options 3
Licenses and guarantees 7
Work duration 7
Feedback 4

Frequently Asked Questions (FAQ)

What does crypto do?

The company offers to invest in stablecoins and other projects, as well as trade on its own crypto exchange.

Is Paxos a stablecoin?

It is a provider of a USDP stablecoin whose price is equal to one US dollar.

Is Safe?

The company is regulated by the DFS of New York, so you can invest money here.

Teodora Jolana
Teodora Jolana
Investment Advisor

Teodora lives in São Paulo, Brazil. She constantly monitors the latest news from the world of cryptocurrencies and innovative investment projects. Read her articles to stay informed!

Teodora lives in São Paulo, Brazil. She constantly monitors the latest news from the world of cryptocurrencies and innovative investment projects. Read her articles to stay informed!

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Client Reviews

  1. Jack

    Just awful

    It is generally the worst crypto project that I have ever met in my life. There is a completely illiquid exchange, huge commissions, and strange security standards. I passed a full KYC check, but they still require some additional documents from me every week! Moreover, in the last two hours I have received two letters demanding to provide additional information! No exchange other than Paxos requires such details from its customers! Additionally, there are also low limits on money withdrawal. Even if you have passed all the verification steps like me.

  2. Mina

    I want to complain

    Be careful. has a really disgusting support service! It is better to spend a few hours studying their documentation yourself than to ask for help. They will not help you. They will only be rude in conversation. It is a disgusting service.

  3. Harry

    I'm having some problems

    I sent several PAXG and about three thousand dollars to my account. When I decided to withdraw some of the money, the company demanded additional documents from me. The joke is that they reject all my letters with documents. I have already sent tickets to support several times, but it didn’t give any result. I’m still waiting, but I don’t like all this.