Paycoin (XPY) is scam

[inBitweTrust]

https://twitter.com/gawceo/status/532173907718332417



15 Petahash... did that ever exist?

http://gawminers.eu/news/hashcoin-ico-customer-round-qa-transcript-yesterday-evening/
"Hashcoin ICO Customer Round Q&A Transcript from Yesterday Evening"

I highlighted some things that stand out to me, below. Probably nothing new. A few broken promises (identities of analysts and banks that set the $20 price expectation were to be released, for example). Claims about partnerships.

I'm probably missing something but it looks like the $20 estimate (allegedly from banks and analysts, not just pulled out of Josh's ass!) was based on an assumption of 250 million coins total. So the number of coins changed to 12.5 million, but the $20 per coin estimate wasn't affected?

Q & A:

Does this mean that although we can buy the coin at around $4.00, if it is actually worth at least $20.00?

Answer: Yes, Josh stated that the coin will be $4.00 or less for the miners to purchase using their Hashpoints.The analysts and banks have stated that they have determined the coin will be “at least” $20.00 per coin, once it is released for sale to the public.

Clarification (Allen): This is just like an Initial Stock Placement Offer (IPO), to investors and the public, of a corporation’s first issuance stock on the NASDAQ, NYSE, Euronet, CAC 40 and DAX. A company decides to raise a specific amount of money to expand their operations, so they go through a process with investment bankers to secure the needed amount of money. The investment bank analysts probe the would-be investors to get an impression of what value they place on the stock, or in this case, a coin. This will change as the offering date approaches, sometimes higher or sometimes lower. They will know best a day or two before this ICO for the coin. Currently, GAW is being given data to indicate that the coin will go for “at minimum” $20.00 each to investors who have already shown interest to “buy in.”

I am basically curious how you guarantee this $20.00 price. Why $20.00 and $4.00 valuations?

Answer-1: $20.00 is not guaranteed, it is the minimum price that outside investors have agreed they would be willing to pay to invest in the coin. It is highly likely the coins market value, at sale time, will be higher than the $20.00 price. As the ICO date approaches, more valuations will be determined from further probing of the interested investor market.

Answer-2 (Allen): All of the ICO coins are apportioned based on the current investors’ and banks’ percentage of involvement up to this point. The remaining share of the ICO coins belong to GAW (and entities). This is a funding coin for GAW’s business expansion projects as well. All involved entities have decided on the percentage of the ICO that will be sold to the miners. Any miner with Hashpoints will be able to purchase the coin with their Hashpoints.

Can you release the names of the analysts and banking partners involved?

Answer: The identities of both the analysts and banks will be released once the ICO has completed and the merchant marketplace established in the near future.

What is the roadmap on documentation for the API/protocol, so web developers, like me, can integrate the coin payment acceptance into our websites?

Answer: We are already partnered with some of the largest merchant payment collectors. The project will also be open-source.

A week or so ago, you said that the market cap is going to be 250 million. Does this mean the total number of coins or does this mean something else?

Answer-1: It will be much higher now.

Answer-2 (Allen): “Market Cap” refers to “Market Capitalization” in the financial world. One takes the number of corporate shares outstanding, multiply those by the current market price, which will then equal the total market value of all outstanding shares of the company. For this coin, the application will be the same, so it is not “numbers of coins,” but rather the entire expected market value of the coins. Josh has indicated this to be the case, because he has stated that the expected market cap is much higher now, meaning that the new expected “value” of the coin has increased above the earliest estimates from a few weeks ago. Although I have no direct confirmation, one can make a deduction that there will be a maximum of 250 million “coins” to be mined, forever. Initially, the calculation for “market cap” was probably being “conservatively” based on a $1.00 per coin rate, hence his original statement that it would be a minimum of $250 million. Now that the expected price on the market has changed, the total mine of the coin (total to be mined) will be in excess of $5 billion ($20.00 x 250 million coins to be mined), at the time of the initial coin offering.

[inBitweTrust]

The nerve of teasing his victims with false hopes....again

[coiners99]

OMG!! dont know what must im doing. lose too much for me.

can give me a solutions? must i sell now or just wait?

thanks

[ikeboy]

OMG!! dont know what must im doing. lose too much for me.

can give me a solutions? must i sell now or just wait?

thanks

Check https://gawgate.com/forums/

[coiners99]

OMG!! dont know what must im doing. lose too much for me.

can give me a solutions? must i sell now or just wait?

thanks

Check https://gawgate.com/forums/

thank you so much. that website helping me

[Sumo]

The Official PayBase Blog




Monday 12 Jan 2015
 
PayBase Honors $20 Paycoin™


Prologue

The launch of Paycoin™ represents a number of factors, starting with our belief (based on our own internal analysis and mathematical modeling), that this coin would command a market value of at least $20. Our statements at the time confirm this sentiment: 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.

Still, we recognize that some of our initial comments were not as well defined as they should have been. We accept responsibility for our actions, and we have an obligation to our own standards of excellence to correct this situation.

Our solution is, thus, twofold. One, effective immediately, our public statements will be in alignment with our business strategies. And secondly, we have a Paycoin™ Honor Program (more about below), which we believe is thorough and fair.

And, while the price of Paycoin™ currently ranges (as of this writing) from a high of $5.00 to a low of $2.50, the Paycoin™ Honor Program is a voluntary – and transparent – effort on our part, executed in good faith and in accordance with our core principles, to do right.

Please note: PayBase™ does not – and cannot – control the price of Paycoin™. Like any other coin, demand by the marketplace determines the price of Paycoin™.

Nonetheless, Paycoin™ is in the single digits. We recognize that some individuals believe PayBase™ guaranteed that the minimum price of Paycoin™ would be $20.

Paycoin™ Honor Program

In an effort to update supporters of PayBase™ and users of Paycoin™ with the most comprehensive and relevant information about our activities, we have a Paycoin™ Honor Program.

This initiative, which will have a $20 purchase price, is our plan to ensure every coin-holder receives the $20 purchase price for their Paycoin™.

Specifically, that valuation reflects both our pre-IPO assertion about the pricing for Paycoin™, in addition to an earlier statement (the origins of which we explained in a previous post), that "We would buy 'them' [Paycoin™] for $20."

This Paycoin™ Honor Program, for which this post contains an overview of the principal, points (see below) regarding this soon-to-debut proposal, will follow a detailed and timely structure.

The Paycoin™ Honor Program is the ultimate proof of our commitment to honoring the spirit and letter of our statement about the $20 floor. It is also a step-by-step process that will be independent, secure and consistent (in terms of monthly disbursements), so participants will have full confidence in the transparency and oversight governing The Paycoin™ Honor Program.

And, in further reference to the $20 assigned value, we would like to reiterate the reasoning behind this figure.

The pricing is the result of complex mathematical modeling and real-world variables. Meaning: Calculations about expanding market capitalization, and the creation of mechanisms to ensure the market did not grow faster than the rate of adoption among users, revealed a growth rate consistent to sustain the $20 price.

Though the marketplace controls the price of any coin, and because of our pledge to users of Paycoin™ about the $20 figure, The Paycoin™ Honor Program reconciles any price discrepancies; it restores the $20 valuation.

Protocol Involving Past Statements and Comments

We also want to reaffirm our own duty to lead, with professionalism and candor.

If our earlier statements were not sufficiently clear – if we were inexact in what we said and how we said it – we accept responsibility for our remarks.

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.

Paycoin™ Honor Program Summary

PayBase will offer a Repurchase Agreement to the general public for 30 days, which will establish a contractual arrangement between PayBase™ and any Paycoin™ holder (Seller), whereby the Seller agrees to sell Paycoin™ to PayBase™ at $20.00 USD per Paycoin™.

The Paycoin™ Honor Program will involve these main features:
•30-day Signup: Coin-Holders will have 30 days to enroll in The Paycoin™ Honor Program. This period will start on February 1st and end on March 2nd.
•Account Verification: All participants will undergo an account verification process.
•Paycoin™ Will Be in a Secure Third-Party Vault: As part of The Paycoin™ Honor Program, we will have an exclusive – and secure – vault to house Paycoin™. In the interest of transparency, a separate entity unaffiliated with either PayBase™ and/or GAW will manage this vault.
•Third-Party Authentication: Transactions performed or released through this vault will be authenticated by an independent third-party manager.
•$20 USD Payment in Bitcoin at the USD Rate of Exchange, Upon Commencement of The Paycoin™ Honor Program: Repurchases of Paycoin™ will yield a payment of $20 USD, in Bitcoin, at the USD rate of exchange for each monthly disbursement during The Paycoin™ Honor Program.
•Monthly Repurchase Disbursements: A minimum of $100,000 in payments from the Company to Sellers will be made on the first of each month, until each repurchased Paycoin™ has been redeemed and each Seller has been paid for Paycoin™ he or she has sold. We reserve the right to increase these payments, to make all disbursements as quickly as possible.

Pending the finalization of additional steps involving The Paycoin™ Honor Program, we will announce this news in an expeditious and thorough manner.

We seek to provide users of Paycoin™ with the information they expect and deserve to receive about this coin.

To reiterate: *None of our plans have changed. *

We will perform the enclosed action items:
•Re-establish the $20 value of Paycoin™ through this initiative.
•Merchant integrations will follow suit, as originally planned.
•Finally, we will deliver the enhanced features we know many of our supporters look forward to using.

We want to thank our diverse community of users for their commitment on behalf of the sustained success of Paycoin™.

[Melbustus]

Re the above post:

A minimum of $100,000 in payments from the Company to Sellers will be made on the first of each month, until each repurchased Paycoin™ has been redeemed and each Seller has been paid for Paycoin™ he or she has sold.

So, at $20/PayCoin, they'd need to honor $240,000,000 worth of coin. Given that they're promising to do $100,000 worth of this per month, it'll only take $240m/$100k=2400months =  200 years to honor!!

These guys are some of the more creative scammers we've had around here.

[Bansheroom]

Re the above post:

A minimum of $100,000 in payments from the Company to Sellers will be made on the first of each month, until each repurchased Paycoin™ has been redeemed and each Seller has been paid for Paycoin™ he or she has sold.

So, at $20/PayCoin, they'd need to honor $240,000,000 worth of coin. Given that they're promising to do $100,000 worth of this per month, it'll only take $240m/$100k=2400months =  200 years to honor!!

These guys are some of the more creative scammers we've had around here.

Using the proven wrong numbers in different threads makes your misinformation not more true.

[inBitweTrust]

Seems appropriate to remind what escrow means in GAW dictionary:

https://hashtalk.org/topic/22975

Let's hope the "Third-Party Vault" won't be some new offspring in Delaware.

@AnimoEsto said: cool ... who is the escrow you are using?

reread the OP

@AnimoEsto said: I have - I cant see who the escrow is though?

They have already been sent to the investors. The only coins that have not been distributed are HP customers. Those are sitting in a wallet until the conversion happens.

@Miramyn So when you said "escrow" you didn't mean the traditional sense of an independent 3rd party holding them? Just that they are safe in a GAW wallet?

We are escrowing customer coins like we always and would (why would we escrow through a 3rd party to hold customer coins?)

We have never used a 3rd party escrow of our own customer funds. That would be HIGHLY risky for our customers as we are insured and there are very few companies that move the volume of coins we do.

We were the escrow for the investors until they got their coins. So to them, we are the 3rd party. Hope that make sense

[inBitweTrust]

Anyone have a copy of what allen1980 posted last night in regards to the INCOMMING announcement? would be interesting to read.... what got him banned?

This is what he posted:

It is also a step-by-step process that will be independent, secure and consistent (in terms of monthly disbursements).
Though the marketplace controls the price of any coin, and because of our pledge to users of Paycoin™ about the $20 figure, The Paycoin™ Honor Program reconciles any price discrepancies; it restores the $20 valuation.
PayBase will offer a Repurchase Agreement to the general public for 30 days, which will establish a contractual arrangement between PayBase™ and any Paycoin™ holder (Seller), whereby the Seller agrees to sell Paycoin™ to PayBase™ at $20.00 USD per Paycoin™.
________________________________________
• 30-day Signup: Coin-Holders will have 30 days to enroll in The Paycoin™ Honor Program. This period will start on February 1st and end on March 2nd.
________________________________________
• Paycoin™ Will Be in a Secure Third-Party Vault: As part of The Paycoin™ Honor Program, we will have an exclusive – and secure – vault to house Paycoin™. In the interest of transparency, a separate entity unaffiliated with either PayBase™ and/or GAW will manage this vault.
________________________________________
• $20 USD Payment in Bitcoin at the USD Rate of Exchange, Upon Commencement of The Paycoin™ Honor Program: Repurchases of Paycoin™ will yield a payment of $20 USD, in Bitcoin, at the USD rate of exchange for each monthly disbursement during The Paycoin™ Honor Program.
________________________________________
• Monthly Repurchase Disbursements: A minimum of $100,000 in payments from the Company to Sellers will be made on the first of each month, until each repurchased Paycoin™ has been redeemed and each Seller has been paid for Paycoin™ he or she has sold. We reserve the right to increase these payments, to make all disbursements as quickly as possible.
________________________________________
Question 1: You are saying that a third party will be "holding" our Paycoins, which must be "surrendered" at the time we agree to sell said Paycoins?
Question 2: This agreement will not cover those Paycoins, having been staked for the past 21 days, since they cannot be removed from the Staker wallets?
Question 3: The daily Staker yield will not be able to be added to those coins initially surrendered? This is a one transaction exchange?
Question 4: You will not be paying, in full, the value of $20.00 per surrendered coin, but will be taking the entire number of customer surrendered coins and "buying down the liability" over the course of years, and at a buyout rate of a minimum of $100,000 per month?
Question 5: Will a surety bond be purchased to ensure the solvency of this program of Paybase/GAW, as well as the $20.00 value of the vaulted coins should GAW/Paybase become insolvent?
________________________________________
Analysis:
This means that if the vast majority of people here decide to sell at the $20.00 price, and the amount of coins to be sold is 1 million, the following:
1 million XPY x $20.00 = $20 million
$20 million divided by $100,000 per month = 200 months or 16.7 "YEARS"
No interest on the held coins. The last XPY coin is to be mined at the end of the 15th year.
Not only do you probably have no access to the surrendered coins, but you may not see dime one for years, unless this "Official Post" on a "blog" is also misrepresenting intentions. In this case I hope so. This is exactly like the MultiHashlet miners that make 0.000000001 in profits each day, as follows:
________________________________________
Hypothetical Case:
1 million XPY
667 Accounts
1,499.25 XPY per account
$20 million total value
$100,000 per month repurchase
200 Months
1,499.25 XPY divided by 200 months = 7.50 XPY per month or $150.00 per month in repurchased coins per account.
________________________________________
Moreover, they are asking all involved in this program to further assume additional "business risk," because GAW may not even be around after 2015, at least not in this capacity.
Basically, if all that I have interpreted is correct, they have just insulted our intelligence.

[Snipe85]

Wow, they really decided to buy paycoin for $20  Great news for the ones still holding

[ikeboy]

Wow, they really decided to buy paycoin for $20  Great news for the ones still holding

They really decided to announce it. Big difference. But still pretty good news, as it's going up.

[BitSlapper]

Wow, they really decided to buy paycoin for $20  Great news for the ones still holding

I think you completely missed the point allen1980 was making....

but yea sure they decided to buy paycoin back for $20 USD.

Just don't expect your money for ~15 years.

Hopefully GAW is still around then or hasn't been sold or hasn't been re-branded or re-formed by the original owners as a different company by then...

That is providing you surrendered all of your paycoin to GAW within that 30 day period. So basically you can't sell it... ever... GAW now owns it and has "promised" to eventually pay you $20 USD per coin... eventually... <.<  >.>

[wasref]

judging by the activity on trading it looks like someone is accumulating. guess they want to buy back very less at $20 buy buying most of it now. the coin does seem legit. should be intresting

[ikeboy]

judging by the activity on trading it looks like someone is accumulating. guess they want to buy back very less at $20 buy buying most of it now. the coin does seem legit. should be intresting

The price is going down, how do you figure?

[wasref]

judging by the activity on trading it looks like someone is accumulating. guess they want to buy back very less at $20 buy buying most of it now. the coin does seem legit. should be intresting

The price is going down, how do you figure?

create panic by making them think end of rise. cheaper coins less they need to spend just my opinion

[Bobsurplus]

Once again......

https://www.youtube.com/watch?v=HiDYcYsNFNg

EVERYBODY KNOWS!

[ikeboy]

judging by the activity on trading it looks like someone is accumulating. guess they want to buy back very less at $20 buy buying most of it now. the coin does seem legit. should be intresting

The price is going down, how do you figure?

create panic by making them think end of rise. cheaper coins less they need to spend just my opinion

So what would count as evidence against your view, then? As both price rises and drops prove the same thing.

[Bansheroom]

Wow, they really decided to buy paycoin for $20  Great news for the ones still holding

I think you completely missed the point allen1980 was making....

but yea sure they decided to buy paycoin back for $20 USD.

Just don't expect your money for ~15 years.

Hopefully GAW is still around then or hasn't been sold or hasn't been re-branded or re-formed by the original owners as a different company by then...

That is providing you surrendered all of your paycoin to GAW within that 30 day period. So basically you can't sell it... ever... GAW now owns it and has "promised" to eventually pay you $20 USD per coin... eventually... <.<  >.>

There are at least 2 mistakes in Allens "math".
He describes the worst case scenario without mentioning, and the number of 1 million coins is pulled out of nowhere without any source or real explanation.

[fullhouse]

i see that this coin's 24HR trade VOL still about 700bitcoins in bittrex
really a huge vol