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20 dollar floorRecent news has seen a lot of turbulence surrounding the launch of Paycoin and its progenitor, GAW Miners CEO Josh Garza. A polarizing argument has arisen over the value of Paycoin, the Peercoin fork which many feel has too many promised deliverables to be real.

At issue, is the perceived value of Paycoin. In a Google Hangout a few months back, Garza promised that PayBase would make it difficult for the price of Paycoin to dip below $20. Since Bitcoin traded under a dollar until February 2011, to many this seemed ambitious in the best light, but the nature of value is in the belief thereof. Within days of Paycoin’s launch, folks took to the internet with claims that their $20 promise was being broken as the price declined due to “dumping,” a situation where a coin or stock holder will sell it at whatever price they can get, valuing the currency they are selling for more than they value the asset being dumped. Unfortunately for others in the marketplace, this can lead to severe price fluctuations, and no traded asset is exempt from this problem. This was a point of contention in recent weeks and now PayBase has come out with a strong response to detractors.  Recent price dives in Bitcoin and the Russian Ruble are also good case studies.

PayBase Making Fresh Promises for Paycoin

In a detailed article on its blog, PayBase announced this morning that the $20 guarantee is still a reality, though it is not based on earlier made promises. Community analysis of the Google Hangout session so many were basing their belief in reveals that Josh Garza made sure to state clearly that he was not, in fact, promising that the value of Paycoin would be twenty American dollars, but rather that the firm and its backers would do all they could to keep the value above that number. This, of course, led to a controversy with Litecoin and Coin-Swap, the exchange that is an asset of Garza’s, Litecoin‘s lead developer asking to be delisted from the exchange for ethical reasons.

In an apparent effort to soothe its core audience, those who have supported PayBase and Garza, the blog begins in defense of the value prediction.

Our optimism was […] not the result of blind faith or excess pride; our confidence was the product of extensive research, the assembly of a talented team of professionals and a lot of hard work – the investment on our part was, and remains, steadfast. […] We accept responsibility for our actions, and we have an obligation to our own standards of excellence to correct this situation.


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From there, the odyssey to a solution acknowledges current price realities and even criticism of Garza himself.

To that end, we have an exhaustive protocol about all future on-the-record remarks. In our words, and through our deeds, we will be firm and firmly unambiguous.

How This Will Work

Using a “repurchase agreement,” dissatisfied holders of Paycoin will have the option to sell back their coins to PayBase. The “repurchases” will be transacted in Bitcoin after a thirty-day period beginning February 1st for coin holders to sign up has passed. A third-party will be involved to house the coins and ensure transparency in the process, but the program apparently reserves the right for the company to only have to pay a min of $100,000 per month until the coins are all paid for.

It is hard to tell if this move on PayBase’s part will do anything to staunch the bleeding caused by such a great deal of negativity and polarization, but certainly it offers those who want the $20 (in BTC as it were) price an easy way out.

Images from Shutterstock.

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Posted by P. H. Madore

P. H. Madore has been publishing since 2003. Tip: 1phmMcubFy298wujNFj6hQ1gctUBFovmL -- Visit me on Steem: https:[email protected]

12 Comments

  1. Derentius Deren 08/03/2015 at 12:37

    Yeah, many bad things are happening with GAW recently

  2. P. H. Madore 28/02/2015 at 05:50

    Yep, see the front page. I won’t even go there for a few days because I don’t want to get too involved in the hatred that is surely directed my way. But anyway, I did indeed write an update “PayCoin Promises Unkept.”

  3. Derentius Deren 27/02/2015 at 21:00

    More than a month has passed. I think this article requires addition ..

  4. Josh

    Where is the $20??????????????

    you scam artist!!!!!!!!!!!!!!!!!!!!!!!!

  5. Richard Jordan 28/01/2015 at 18:12

    I really wouldn’t put to much stock in anything they say. They gave me a
    free gift of a miner then took it back 3 months later cause I didn’t
    buy anything. I couldn’t cash out any of the btc it generated either, lol

  6. gamersglory 13/01/2015 at 23:18

    At This rate XPY will be worth more then BTC by then

  7. Gloryhole Smith 13/01/2015 at 19:25

    This would have more oomph if you had spelled Idiocracy correctly. Now I can’t use this quote though I’d love to. :(

  8. ContractMine Bitcoin Mining 13/01/2015 at 06:02

    Now it all comes back down to trust, which is low for GAW at this point so this new promise doesn’t really carry much weight until they act upon it. We will see where we are in a month…

  9. “an obligation to our own standards of excellence” indeed.

  10. Too true. It’s the shady side of crypto that enforces the bias and gives the casually-informed a bad taste in their mouth about it. When PayCoin investors, need to borrow money from their parents, that will also reflect on all of crypto in general for Joe Sixpack sitting on the fence. “Ya see what happened to the Johnson kid? No thank you, I’m not falling for that.”

    Unrelated but how the believer are going to feel, here’s a good read to put a busted investor in perspective. And I don’t mean equate Dogecoin with XPC, but there’s something to be learned when you buy at the top: http://www.reddit.com/r/dogecoin/comments/29vt1q/suicidal_over_dogecoin_please_help_shibes/

  11. Paul Madore 13/01/2015 at 00:12

    Acknowledging, I assume, that many old people still say the same thing about Bitcoin.

  12. Trollololo. If only the fathers of the kids who fall for this (twice?!) had jerked off on a hot rock instead, we might avoid a future that resembles Idiocrasy.

    (I will relish the ban this comment may bring.)

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