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?

> "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

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=0x8e870d67f660d95d5be5...

- Paxos Dollar: https://getpudding.app/#/home?address=0x45804880de22913dafe0...

- Binance USD: https://getpudding.app/#/home?address=0x4fabb145d64652a948d7...

- Tether: https://getpudding.app/#/home?address=0xdac17f958d2ee523a220...

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