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> Paxos also assured the funds are safe, and fully covered by reserves in their banks. Ahahahaha. Always normal when someone has to state this.

by mavu 4y ago

ElfinTrousers 4y ago
"I have not dismembered any kindergartners and buried their body in my cellar in the past seven months."
pavlov 4y ago
I think Paxos is probably legit. Their stablecoin was used by Facebook in the last desperate iteration of the Libra/Diem crypto project. I would assume that a company of FB's size and ongoing legal scrutiny probably vetted Paxos's reserves pretty thoroughly. (Then again the FB crypto project was a fuck-up of the highest order right from the start, so maybe they neglected this too.) However the Paxos-Binance stablecoin bridge business seems shady. Are the BUSD tokens created by Binance really backed by the dollars Paxos is holding? What's the chance there is a FTX-style "hidden, poorly internally labelled account" black hole where the money should be?
- bastawhiz 4y ago
  Call me old fashioned, but "legit" and "last desperate iteration" are two things that rarely go hand in hand.
jt2190 4y ago
> "The [New York] Department [of Financial Services] is monitoring Paxos closely to verify that the company can facilitate redemptions in an orderly fashion subject to enhanced, risk-based, compliance protocols," [1] [1] “Notice Regarding Paxos-Issued BUSD” https://www.dfs.ny.gov/consumers/alerts/Paxos_and_Binance https://www.dfs.ny.gov/consumers/alerts/Paxos_and_Binance
interleave 4y ago
Interesting! Out of sheer curiosity, I've been monitoring Paxos Dollar and Paxos Gold for 6 months. If anything, they're one of the least active, more self-centered ecosystems. Binance USD is a relatively disconnected and slow ecosystem only sub-passed by Tether. It's easier to show than tell. So here's a tool I made to visualize what I'm talking about: - Paxos Gold: https://getpudding.app/#/home?address=0x8e870d67f660d95d5be530380d0ec0bd388289e1 https://getpudding.app/#/home?address=0x8e870d67f660d95d5be5... - Paxos Dollar: https://getpudding.app/#/home?address=0x45804880de22913dafe09f4980848ece6ecbaf78 https://getpudding.app/#/home?address=0x45804880de22913dafe0... - Binance USD: https://getpudding.app/#/home?address=0x4fabb145d64652a948d72533023f6e7a623c7c53 https://getpudding.app/#/home?address=0x4fabb145d64652a948d7... - Tether: https://getpudding.app/#/home?address=0xdac17f958d2ee523a2206206994597c13d831ec7 https://getpudding.app/#/home?address=0xdac17f958d2ee523a220...

> Paxos also assured the funds are safe, and fully covered by reserves in their banks. Ahahahaha. Always normal when someone has to state this.

by mavu 4y ago

> Paxos also assured the funds are safe, and fully covered by reserves in their banks. Ahahahaha. Always normal when someone has to state this.

ElfinTrousers 4y ago

"I have not dismembered any kindergartners and buried their body in my cellar in the past seven months."

pavlov 4y ago

I think Paxos is probably legit. Their stablecoin was used by Facebook in the last desperate iteration of the Libra/Diem crypto project. I would assume that a company of FB's size and ongoing legal scrutiny probably vetted Paxos's reserves pretty thoroughly. (Then again the FB crypto project was a fuck-up of the highest order right from the start, so maybe they neglected this too.) However the Paxos-Binance stablecoin bridge business seems shady. Are the BUSD tokens created by Binance really backed by the dollars Paxos is holding? What's the chance there is a FTX-style "hidden, poorly internally labelled account" black hole where the money should be?

bastawhiz 4y ago
Call me old fashioned, but "legit" and "last desperate iteration" are two things that rarely go hand in hand.

jt2190 4y ago

> "The [New York] Department [of Financial Services] is monitoring Paxos closely to verify that the company can facilitate redemptions in an orderly fashion subject to enhanced, risk-based, compliance protocols," [1] [1] “Notice Regarding Paxos-Issued BUSD” https://www.dfs.ny.gov/consumers/alerts/Paxos_and_Binance https://www.dfs.ny.gov/consumers/alerts/Paxos_and_Binance

interleave 4y ago

Interesting! Out of sheer curiosity, I've been monitoring Paxos Dollar and Paxos Gold for 6 months. If anything, they're one of the least active, more self-centered ecosystems. Binance USD is a relatively disconnected and slow ecosystem only sub-passed by Tether. It's easier to show than tell. So here's a tool I made to visualize what I'm talking about: - Paxos Gold: https://getpudding.app/#/home?address=0x8e870d67f660d95d5be530380d0ec0bd388289e1 https://getpudding.app/#/home?address=0x8e870d67f660d95d5be5... - Paxos Dollar: https://getpudding.app/#/home?address=0x45804880de22913dafe09f4980848ece6ecbaf78 https://getpudding.app/#/home?address=0x45804880de22913dafe0... - Binance USD: https://getpudding.app/#/home?address=0x4fabb145d64652a948d72533023f6e7a623c7c53 https://getpudding.app/#/home?address=0x4fabb145d64652a948d7... - Tether: https://getpudding.app/#/home?address=0xdac17f958d2ee523a2206206994597c13d831ec7 https://getpudding.app/#/home?address=0xdac17f958d2ee523a220...