Paxos (PAX) Records ATH Trading Volumes, Is This A Cause Of Market Manipulation?
- PAX records all-time high in trading volume as the top brass are skeptical that this might be an over-inflated figure with over $850 million coming from lesser known exchange, TOKOK, in the British Virgin Islands.
Reports have emerged that Paxos Standard (PAX) has recorded an all-time high spike in trading volumes. They achieved a record $1.3 billion on 3rd March 2020 which makes up for about 282% increase in volumes from the $339 million they had recorded the previous day.
The Paxos spokesperson was however skeptical about the data. They noted the spike might have been attributed to faulty data on the aggregator sites. The tally of the total volume for Paxos supported stablecoins namely PAX, Huobi stablecoin (HUSD) and Binance stablecoin (BUSD) was at $60 million at the time.
The upsurge north of $800 million has been registered from a less known centralized crypto exchange called TOKOK located in British Virgin Islands. More often than not crypto exchanges have been seen to exaggerate trading volumes.
When records from the TOKOK exchange aren’t included, the volumes shoot down to around $400 million which has been the average daily tally for the past half year. This shows that investor cannot afford to trust data from just any exchange and has to look at the credibility of the exchange in question.
Transaction count has also increased
They also recorded an all-time high for number of transactions of around 6800 and managed to process a chunk of it 6500 by days’ end on March 2nd. This is a 600% increment from the meagre 1000 transactional count they were recording by end of last year.
This is as the supply of PAX has for the first time since last year dropped below $200 million. The stablecoin pegged to dollars held in US banks, was thrust into the market in 2018 September by the mother company the Paxos Trust.
Notably last year November Paxos released an FIAT gateway (off/on ramp feature that would enable clients to freely use traditional currencies to fund their account activities with Binance being the first to incorporate the feature. Binance CEO Changpeng “CZ” Zhao was convinced that this was the fastest and simplest on/off ramp.