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PAX GOLD PAXG backing (or lack thereof?) update

Since I [last posted](https://np.reddit.com/r/CryptoCurrency/comments/mhzls4/paxos_gold_paxg_supply_doesnt_match_their/) there are are some new developments around PAX Gold (PAXG), their lack of transparency and irregularities in their reporting.

In short, PAXG has a [Chainlink data feed](https://data.chain.link/paxg-reserves) that is supposed to report how much gold they hold but it was reporting far less gold than tokens (about 2/3 as much gold as tokens) in circulation and it also indicated that it was updated daily when it clearly was not updated daily.

Chainlink’s [response to this was very weak](https://np.reddit.com/r/Chainlink/comments/mo54vs/i_dont_get_how_chainlink_is_decentralized/) to say the least. They also have not addressed how the data feed can report that it is updated daily if the source data is only updated monthly, or sometimes even less often.

Since my last post PAXG deleted their [February 26 attestation report that was previously published (scroll down and click to expand the PAXG reports)](https://web.archive.org/web/20210330103307/https://www.paxos.com/attestations/) at [https://www.paxos.com/attestations/](https://www.paxos.com/attestations/). They also came up with [a new report dated March 31, 2021](https://www.paxos.com/attestations/) that conveniently provides backing for the excess supply of tokens, much of which they had already minted prior to the report date. ([Screen shot here](https://i.postimg.cc/j2Jx6CMF/PAXG-attestations-13042021.png) in case it changes again, not sure why archive.org won’t update the new page)

There is a lot more detail in [the original post](https://np.reddit.com/r/CryptoCurrency/comments/mhzls4/paxos_gold_paxg_supply_doesnt_match_their/). It seems like Chainlink accepts PAXG’s data uncritically and allows them falsely report that the data is updated daily when in fact it’s updated only once per month at most and it’s just a single piece of paper that says ‘you can trust us, we have it’ much like [Tether’s reports.](https://davidgerard.co.uk/blockchain/2021/03/30/tether-produces-a-new-attestation-it-says-nothing-useful/)



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2 Comments

  1. Paxos is one of the most trusted companies in the crypto world so I would definitely first search for other reasons for the perceived discrepancies. The original posts has a lot of comments claiming that the “missing” tokens are in fact locked in smart contracts. I’d like to hear from anyone that can actually confirm the existence of such smart contracts that would have such large quantities of tokens in them.

  2. PAXG is highly regarded as a reputable member of the Cryptosphere as far as I’m aware.

    They are listed on Coinbase, SwissBorg and other such exchanges which are licensed and audited, with all projects undergoing pretty significant scrutiny before they would be accepted as a partner to either.

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