Where to invest in summer 2022?

The main event of the first week of May was the Fed rate hike by 0.5%. It was also announced the start of the “quantitative tightening” (QT) program, in which the Fed will sell bonds from its balance sheet for tens of billions of dollars every month. And if the cycles of raising/lowering rates are constant, then QT will only start for the second time in history. The first “entry” began in 2017, and already in the first three months, the stock and bond markets fell noticeably. We will see what will happen now, but given the increase in rates at the same time as the QT program, one should not expect many positives

On the other hand, most US companies reported better-than-expected Q1 results, so no apocalyptic financial crisis scenario is expected.

It is recommended to take into account, as a result of the war in Ukraine, such factors as the food crisis, the possible direct participation of NATO, a nuclear strike with unpredictable consequences for the whole world. And accordingly, plan your actions based on the likelihood of such events.

According to forecasts, inflation will be 8.1% instead of 8.5% a month ago. If this happens, it will be a good signal, as it will allow the Fed to raise rates more slowly.

Cryptocurrencies

• Axie Infinity: -5.14% (-0.61$);
• Binance Coin: -14.32% (-5.10$);
• Bitcoin : -14.35% (-8.02$);
• Ethereum : -14.75% (-12.93$);
• Polkadot : -18.82% (-3.03$);
• Solana: -15.43% (-5.71$);
• Cardano : -15.40% (-4.05$);
• Terra LUNA: -12.99% (-2.60$);
• NEAR Protocol : +7.70% (+$1.54).

Difficulties in the stock market also negatively affect the cryptocurrency market, although there are enough reasons for this. For example, a great resonance was caused by the fall in the price of a stablecoin Terra USD from 1$ to 0.99$. It seems to be a trifle, but for a cryptocurrency that should firmly keep its value at the level of $1 and has a capitalization of under $20 billion, this is an unpleasant reputational blow. They write that the attack on the stablecoin was coordinated – large orders for sale were received, plus there was a dispersal of panic on social networks. It is possible that this situation affected the entire crypto market as a whole, although for the most part, this is “of course the result of the Fed’s policy.”

The week before last, some investors added two projects to their crypto portfolios – Terra and NEAR Protocol. The main reason is that the stablecoin sector is showing significant growth and both projects are related to it: Terra specializes in this sector, and NEAR recently announced its USN stablecoin.

As a result, the distribution of investments by cryptocurrencies is now approximately the following: ETH – 28%; BTC 18%; SOL – 12%; BNB – 11%; ADA – 8%; NEAR – 8%; LUNA – 6%; DOT – 5%; AXS – 4%. Pretty good, but a small additional purchase of BTC is quite acceptable. For example, you can do this with AXS, but this is not even the worst performing altcoin in the portfolio (thanks to staking 120% per annum ). Therefore, there is not much point in removing this coin despite the giant $625 million.

Precious metals

PAX Gold : -1.39% (-4.80$) – a more detailed review is given below.

The Fed’s policy is also negative for gold, but on the other hand, when the stock market falls, precious metals usually do well. Even in the portfolios of a considerable number of investors, it is clear that gold in 2022 shows itself noticeably better than stocks and crypto, and given the uncertainty of the future around the world, gold as a protective asset looks like a mandatory element in the portfolio. Another thing is that there was an opportunity to sell it at a price of $2,000 on the wave of hype for precious metals in March, and many missed it.

Deposits

• UAH ( Monobank 9.22%): +0.55% (+4.21$);
• BUSD ( Binance USD 10-13%): +0.18% (+0.56$);
• UST ( Terra USD 19%): +0.5% (+0.71$).

Everything is according to plan, the only trouble is that the yield on the deposit in UST fell to 19%. Not surprising, given the problems of the stablecoin described above.

And now – the promised brief review of PAX Gold.

Pax Tokenized Gold is the easiest way to capitalize on gold growth

What are these coins and how can you earn on them simply, reliably and safely?

Pax Gold ( PAXG ) is a stablecoin from Paxos Trust Company, whose rate is pegged to the price of a troy ounce of gold. It allows you to earn on the growth of the gold price with minimal effort and is 100% backed by physical bars stored in the gold vault. Brink’s in London.

Essentially Pax Gold is nothing more than tokenized gold on the blockchain Ethereum. Suffice it to say that all PAXG holders have ownership of the custodian’s physical gold. Paxos Trust Company and can at any time exchange their tokens for physical ingots from the company’s partners, for example, in the same London Brink’s.

Paxos Trust Company is a regulated custodian and trust company that operates under the supervision of the New York State Department of Financial Services (NYDFS) and the US Securities and Exchange Commission ( SEC ). In the crypto community, she became especially famous after the release of the stablecoin. Paxos Standard pegged to the dollar (31st place on CoinMarketCap with a capitalization of ~$254.5 million).

Thus, you get all the benefits of reliable secure traditional assets + simplicity, convenience, flexibility, liquidity, efficiency and low transaction costs inherent in cryptocurrencies. In general, buying is simple and cheap, storing is convenient and economical, moving is fast, and trading and exchanging is no problem.

Basic information about the coin

• release date – September 5, 2019;
• capitalization – $610,322,914;
• course – $1 855.63;
• useful links – official site , transaction explorer , White paper .

Interesting facts about Pax Gold

• Chad Cascarilla, CEO of Paxos, stated that the launch of Pax gold – is a big step towards the adoption of cryptocurrencies by investors, and in the future, the company is going to tokenize other real assets as well. He described PAXG as follows: “It is not about the expression of the goods, but the actual ownership of it. That’s the whole point of blockchain – assets can be easily moved without being tied to a physical process.”
  Fortune interviewed, he also noted that Paxos Gold is the cheapest way to own gold outright , as they don’t charge annual custody and custody fees (in fact, it’s even cheaper than paper gold in the form of an ETF ). And now you can own gold, getting liquidity, divisibility and tradability of the crypt”;
• Each token Pax Gold represents 1 troy ounce (31.1034768 grams) of a specific bar stored in a gold vault Brink’s in London. Basically, we are talking about 400 oz bars ( 350-430oz ) with a minimum mass fraction of gold of 99.5%, whose estimated value is about ~ $ 600,000, so institutional investors usually indulge in such;
• On the Pax official website Gold, you can enter an Ethereum address and find out the physical characteristics of your gold bar (or part of it), including serial number, code and weight;
• Despite the fact that cryptocurrencies that are pegged to the rate of gold or backed by gold have appeared before , Pax Gold has become the first and only gold token that has all the necessary licenses and regulatory approvals (in particular, permission from the NYDFS), and is also audited every month by independent international auditors (for example, Withum );
• Pax gold- _ the only gold token with LBMA accreditation ( London Bullion Market Association, also known as the London Precious Metals Market), which all major financial institutions also have, including ICE , CME group, BlackRock , Bank of America, Bank of China, J.P. Morgan, Goldman Sachs , Citibank , UBS , etc.;
• Pax Gold is the only gold token that gives ownership of physical gold (that is, we are talking about allocated , not impersonal gold) and which can be exchanged for physical bullion from the company’s partners (the first announced partners were London’s Brink’s and New York ‘s Bullion Exchanges );
• When generating new tokens Pax Gold on the Paxos official website, a commission of 0.03-1 % is charged, depending on the volume of the order, which goes mainly to pay for Brink’s services for the storage and protection of gold bars. But unlike CHI, ETFs and Mutual Funds, you do not need to pay any service fees;
• Startup SALT, which offers lending services in cryptocurrencies, offers loans secured in Pax gold ;
• Due to the requirements of the regulators, in the Pax smart contract Gold, it is possible to freeze the balance at any address and remove coins from it;
• By the way, even if something happens to Paxos itself or the guys declare bankruptcy, then 1. – the Ethereum network, of course, will continue to work and 2. – you will retain your ownership of the bullion.

Where to buy Pax Gold?

Correctly, tokens Pax Gold must be purchased directly on the Paxos official website, especially since the first 7,000 tokens are sold at a 2% discount, and the minimum purchase amount is only 0.01 oz (approximately ~$15). True, there are several “buts”: firstly, for Russian users, the site may not be available without a VPN. secondly, upon registration, identity verification is immediately required, and secondly, verification does not want to accept documents from citizens of Russia, Ukraine and Kazakhstan (everything is ok with Belarus).

In addition, today Pax Gold is traded on the following exchanges

• itBit – in fact, the official Paxos exchange, were Bitcoin, Ethereum, Иitcoin Cash, Litecoin, Stellar and of course Paxos Standard and Pax gold. Also may not be available without a VPN;
• Bithumb Global – pair PAXG / USDT available;
• HitBTC- PAXG / BTC and PAXG / USDT pairs are available.

Given the nature of the coin, the question is whether it will appear on Binance. On the one hand, we are talking about allocated gold, and on the other hand, tokenized Paxos dollars standard available wherever possible, starting from Binance, Bitcoin Code, Pit, eToro, Bitfinex, and OKEx.

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