I get your point, but people are earning XPY every day from their stakers. They are going to want to be recompensed. When the number of XPY keeps piling up and people realize they are getting zilch for their efforts... there will be a slow tidal wave of dissent. Especially at the 30, 45, 60, and 180 day marks.
First, I think you underestimate how well their fan base is trained to live with disappointment. Look back at all the posts about how it would be foolish not to buy XPY at $10 when you can sell it for $20 in a few days. People's plans for the big day when they could get $20 per XPY, what they were going to buy on Amazon and what a great deal they'd be getting at $20 per XPY. On and on and on. Now it's about how there was never a guarantee and how it's up to them to create value and take a long-term view and hold firm etc.
And it's utterly disgusting. I get what some have been saying around here now. I can admit when I'm wrong. The BS about how there was never a guarantee, or that they were spending 500K a minute... or the "speed" of Cryptsy... all that is my breaking point.
Compared to that the stakers seem like a small hurdle. There will be a lot of complaining about stakers, but then maybe GAW makes some kind of adjustment, maybe a new product that initially looks generous. (Why were people willing to pay money to rent a wallet capable of staking anyway?)
I predict it will be some carrot... agreed. A "free" paybase prime account to everyone to continue holding is my guess.
There's only so many baubles you can buy from Amazon before you realize that it's not doing you much good if the XPY/USD rate is still below $20.
Why isn't it doing you much good? It's like spending bitcoin or any other spendable crypto. It's worth whatever it's worth when you want to spend it. People who bought XPY at $4 have doubled their buying power when XPY is at $8.
Because the value of XPY is not stable. Sure I might be able to buy a CD or a book from Amazon in a few days for 1 XPY... but in a month from now when 1 XPY is only worth $3, I have to spend 3 XPY to buy a CD or book. It's diminishing returns... just like POW mining. The promise of stability was what I was seeking, and if it was possible, then it would be a tremendous breakthrough in the world of crypto. The truth is... I don't want to spend my XPY on baubles or CDs or books from Amazon.
It's not a long-term vision for a coin. It's a convenience to be able to spend XPY at Amazon... but it's not a long-term vision. There's nothing there to attract new people to keep money pumping into the ecosystem, to let natural forces keep the "floor". The only hope is to get current crypto holders (alts and BTC holders) to switch to XPY. No one is going to buy XPY to buy from Amazon when cash does just fine, and is less confusing for Joe Sixpack.
But that still doesn't answer how GAW can get away with it, other than burning through all the USD/BTC as "business as usual" costs as long as possible. At the end of that day... GAW still has to declare bankruptcy to protect itself from creditors. You can't just walk away with that amount of money.
They're getting salaries, presumably huge salaries. Bonuses. Perks. Their other costs can't be that big because their "product" is virtual. They obviously aren't spending a lot on developers, graphic designers (did you see that first attempt at a logo?), etc. They're squeezing revenue out of everything they do in multiple ways. Bankruptcy is possible but not at all guaranteed.
I held my tongue on the "logo unveiling" threads. They were horrid.
But I'm still not in the "scam" territory with GAW. They are just a company taking advantage of their loyal customers. They couldn't walk away in a ponzi/scam type scenario as I see it. They will just continue coming out with virtual "innovations" and string customers along for a while. Josh will sell to someone, or walk away to start some other venture within 2 years.
By the time paycoin/paybase is going down the crapper (I'll bet they can get a year or more out of it) they'll have new schemes going. Running an exchange could turn out to be a big money maker for a while. The kind of games an exchange can play are right in their wheelhouse.
Agreed.
