[monooso]

I'm far from being a crypto apologist, but your comment is based solely on your opinion of other crypto companies.

The article is quite clear that Paxos is a regulated Trust Charter, and "...100% backed by the safest sorts of short-term collateral".

[jorams]

> Paxos is a regulated Trust Charter

Developments in the crypto world have made clear that this doesn't necessarily mean much in this space, so that's why people remain skeptical. Two examples: Prime Trust filed for chapter 11 bankruptcy last month and turned out to have mishandled many millions in customer assets. Fortress Trust was hacked and then bought by Ripple, presumably to cover the losses, just days ago.

Now neither of these are Paxos, and it's possible that Paxos is well managed, but if all the other trees keep falling at some point people are going to judge the forest as a whole.

[jedimind]

You could make the exact same argument about the traditional banking system.

[withinboredom]

The difference is that the government will save the banks, but probably not this random company.

[FabHK]

> No depositor has ever lost a penny of insured deposits since the FDIC was created in 1933.

https://www.fdic.gov/consumers/banking/facts/

[davidgerard]

[flagged]

[troupo]

> and "...100% backed by the safest sorts of short-term collateral".

Tether also claims to be backed by something.

[malfist]

It's also complete nonsense.

Safest short term collateral? Cash.

A dollar will always be worth a dollar.