A representative for USDP informed Cointelegraph that the cryptocurrency will always be redeemable for $1 on Paxos, regardless of any price swings on other trading platforms. A Paxos representative stated that problems with price aggregators, not the protocol itself, were the reason behind the recent debugging of the Pax Dollar (USDP) stablecoin. According to CoinMarketCap statistics, the price of the Pax Dollar momentarily increased to $1.29 on April 16 before dropping down to $1 three hours after the debug. A representative for Paxos told Cointelegraph:
“Trading venues provide pricing data to these systems. Sharp price increases on a few venues yesterday affected the USDP price on pricing aggregators. Markets and trading activities on other trading venues are not under the authority of Paxos.
Pax Dollar Temporarily Reaches Value Of $181M From $140M
The depegging happened during a notable surge in Pax Dollar’s market value, which, according to CoinMarketCap, momentarily surged from $140 million to $181 million when the currency touched $1.29.
At the very moment when the USDP’s market capitalization returned to parity with the US dollar, it dropped to $140 million. At the moment, USDP has a market capitalization of $134 million. The representative stated that USDP would always be redeemable at fair value through Paxos, regardless of the brief price fluctuation: Customers may always generate and redeem USDP from Paxos for $1. Paxos values USDP at $1 at all times. Paxos provides 24/7 1:1 redemption APIs. It is up to the user to decide how best to place an order if venues decide not to utilize these APIs or don’t want to guarantee that liquidity is provided. According to CoinMarketCap statistics, Paxos’ USDP is presently the 13th-largest stablecoin by market capitalization.
