Binance Exchange Sees Paxos Trading Against Tether in PAX/USDT Stablecoin Bridges
Binance has recently launched the Paxos-Tether (PAX/USDT) trading pair on its exchange and it has traded nearly $2.5 million USD in tokens since during the first 24 hours. This shows that there indeed space for stable coins to bridged against different exchanges.
At the moment, Binance, which has just launched the PAX option with the BTC pair in October 2, has most of the PAX volume so far. Stable coins that are pegged to the USD are a very important instrument for trading as some exchanges do not accept fiat currency, so buying a crypto whose price remain stable can definitely be a good idea.
In Binance, USDT is also paired with TrueUSD (TUSD). While both tokens have the same price and can be sold for each other, it is clear that some stable coins have advantages over others, especially when you consider their trust, which tends to vary a lot. The TUSD/USDT market is very popular and active in Binance.
You can, for instance, use the PAX token in other exchanges and exchange for other stablecoins, so it remains an important asset, despite Tether being considerably more popular in the market at the moment, which is natural, since it is considerably older, too.
At the moment, the supply of PAX is somewhat low and not a lot of tokens are being issued, as they are linked to actual funds sent to the exchange of the coin, just like it works with TUSD. However, after some time passes, it is clear that there will be more coins in the market, which can generate a higher liquidity for PAX tokens.
Deviation From Price
It is interesting to perceive that market dynamics can even affect the price of stablecoins. Like, for instance, TUSD, USD and PAX. As a lot of people were eager to buy PAX at Binance, the price of the token rose to $1,05 USD temporarily while the price of USDT was decreased to 99 cents. On Kraken, USDT fared even worse and slide to $0.95 USD a piece, which is a significant deviation from its main price.
In fact, all the fears that surround Tether and its USDT tokens can be very beneficial for the new tokens, as they can get an important share of the market is they prove that they can be more reliable than Tether currently is.
Tether’s main probably is a severe lack of transparency, which makes the tokens sold by the company less trustworthy for many investors for many reasons like not knowing exactly if the company really has all the money to back the tokens.