PayBase announced in a detailed article on its blog this morning that the $20 guarantee is still a reality, though it is not based on earlier made promises by GAW Miners CEO Josh Garza.
GAW Miners CEO Josh Garza took to Twitter to make the announcement of the Paycoin Honor Program as well as that PayBase will honor every Paycoin at $20:
— Josh Garza (@gawceo) January 12, 2015
First, The Paycoin Honor Program is not a “scheme.” The word scheme, as defined by Merriam-Webster, is “a clever and often dishonest plan to do or get something.” Our attorneys read and thoroughly reviewed our statement about The Paycoin Honor Program before we released this news to the public.
For Paycoin to be involved in a scheme, one knowingly endorsed by its own attorneys, would not only be a breach of ethics; it would be grounds for disbarment, or civil and/or criminal prosecution.
So, yes, I think the title of your piece is wrong. And yet, you repeatedly use the word scheme (by my count, nine times) in the body of your column.
Again, I refer you to a second source regarding the definition of the word scheme. According to the Macmillan Dictionary, a scheme is “a plan for achieving something, especially something illegal or dishonest.”
If you believe Paycoin is a party to a criminal enterprise, I ask you to stand in defense of your accusations – and to substantiate your claims. You may write with a critical perspective; but you should not, as an issue of journalistic integrity, sacrifice the direct meaning of a specific word because of your own ideology or agenda.
The only scheme, as far as I can tell, is the non-malicious (as I will afford you the presumption of innocence) and repeated use of a loaded word throughout your column.
With the launch of Paycoin, the company planned for the currency to keep a market value of at least $20. After the value of the currency dropped to $3 on December 29, the company announced it will correct the situation by launching a voluntary Paycoin Honor Program, which complies with the company’s main principles.
“Our optimism was, again, 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,” digital currency platform states in its blog.
The company also noted the price of Paycoin is dependable on the demand, so it cannot fully control its market value. However, they admit their announcement could have made some people to believe that the price of the coin will not fell under $20.
The founder of uBITquity, Nathan Wosnack, revealed his thoughts on the news: “I believe that this highly controversial and stunning display of desperation from the Paybase for their PayCoin, demonstrates how it lacks any real traction with users. If [Paybase] has to prop this coin up, where is the value? Why not allow the market to decide its true value? This company had better act quick… my opinion is they should stop this back-back scheme at once, pay out their existing users, and offer an apology for the poorly planned, poorly executed plan. Because the visceral reaction, even outside of the often pessimistic Reddit community is one of pessimism for this company and its offering.”
Following the news, digital currency exchange Shapeshift.io has removed Paycoins from its platform, saying the company failed to keep the promises that the each coin will value at minimum $20.
Paycoin Honor Program
Under the program, Paycoin owners will be able to sell back the currency to Paybase at a $20 price.
Paybase set up the minimum monthly collective payment of $100,000. Given the “payments from the Company to Sellers [to] be made on the first of each month”, Paycoin holders unlikely to receive any payments until April.
The new program, however, aroused some questions from the coins owners. Thus, Reddit users asked how much time it will take for Paybase to purchase back all the currency, taking into account there are now 12.3 million coins in circulation. According to a rough estimate, it will take on average 200 years to repurchase all coins.
The registration for the program will commence from February 1st and will be closed on March 2nd.
Paycoin was first introduced by GAW Miners back in November when CEO Josh Garza announced an Initial Coin Offering (ICO) of the currency to start in January 2015.