It’s come time for our company to respond to the criticisms of some in the industry with straight-forward, transparent information about GAW Miners’ operations. This thread will establish the foundation of truth - answers to questions our critics have leveled. For the next 30 business days (M-F), We will post a single question taken from the community and answer it as plainly and openly as possible.
We will keep this page here, and will continue to post a question and answer each day.
Some facts before we begin
PayBase is a cryptocurrency payment processing business owned by Business Technology for Cryptocurrency, LLC (BTC). BTC is also the parent company of GAW Miners (GM), a Bitcoin and Litecoin mining business.
GM was built to bring integrity and professionalism to the cryptocurrency industry - an industry, that to this day, suffers from one fraudulent blow to the next. PayBase was built to bring cryptocurrency mainstream, and to do so as a properly licensed and compliant MSB (Money Service Business).
PayCoin is a coin built on the Proof of Stake model. Paycoin investment took the form of a private pre-mine open to early investors and a public pre-mine available to GAW customers. Following the private and public pre-mines of Paycoin, a short period of PoW was offered to the crypto community to participate in accumulating the coin. The private pre-mine served the purpose of collecting monies necessary to support development of the coin and the makers makers creating services to surround the coin.
The public pre-mine served as a reward for GAW customers’ loyalty and for their support of GM during its growth. The Proof of Work phase served to allow some degree of fairness and access to the coin to the crypto community at large, a community which GAW sees itself as upstanding member of. After all three phases were complete, Paycoin became and is, today, a Proof of Stake coin.
(First day of Transparency)
Q: There has been a lot of controversy online, regarding the alleged promise of Paycoins being purchased back by Paycoin/GAW at $20USD per coin. Many people feel this was a promise made to the Paycoin customers that never materialized. As of this morning, Paycoin is trading at $6 per coin, far from the $20 floor that some feel was promised. Can you please definitively state what promises were made, if any, and if there is still a plan to honor a $20USD price for the coin?
When we made this commitment, we had funds set aside to purchase Paycoins at the $20 value. Our goal was to use the CAF or Coin Adoption Fund to help stabilize the value of Paycoin.
When PayBase launched, we purchased the overwhelming amount of Paycoins being cashed out within PayBase with these funds. Many coins were sold for more than the $20 target we set. A large portion of those funds were quickly used by the large volume of sell orders - sell orders that bypassed our sell limits because users created multiple accounts from which to sell their coins at this price.
This was something we incorrectly calculated and a lesson that we'll carry forward with us.
Outside of the significant drain supporting the marketplace had on our reserves, we have since learned that the CFTC (Commodity Futures Trading Commission) has specifically stated that they can hold a company liable for manipulating pricing. For these reasons (and the ones above), the “hard floor” strategy cannot succeed and we have no plans to re-implement it.
http://www.wsj.com/articles/cftc-commissioner-says-agency-has-authority-over-bitcoin-price-manipulation-1416265016We are committed to turning the price of Paycoin around through the development of payment processing and other services to support the value proposition that Paycoin represents.
(Second Day of Transparency)
Q: How will you increase the value of Paycoin?
We want to be clear, we are every bit as committed to Paycoin as ever regardless of the current state of affairs. And we will use every ounce of our talent and creativity to bring all the features Paybase has announced. Development of these features take time.
We have come incredible features lined up for PayBase, you can expect to things no other platform has and that the industry has never seen and these features will be exclusive to Paycoin.
The majority of the Primary features of PayBase should be available in the coming quarter. Please refer to the timeline we posted on the project a couple of months ago.
(Third Day of Transparency)
Q: Why has it taken them this long to develop a platform that appears to have little functionality and no merchant support?
We have adhered to timeline we published before this project started. In fact, we are ahead of schedule. We expect to deliver early on our promised features.
PAYCOIN PLATFORM SELL FOR BTC: 19th Dec 2014 - 19th Jan 2015 (completed)
PAYBASE MERCHANT INTEGRATION: 19th Dec 2014 - 15th Jan 2015 (due in two weeks)
PAYCOIN PLATFORM DEBIT CARD SIGN UP: 20th Dec 2014 - 19th Jan 2015 (in progress)
PAYBASE SELL FOR FIAT: 15th Jan 2015 - 20th Mar 2015 (in process)
