Are there any Colored Coins that are backed by a company's products / services?

[box0211]

What is everyone's take on colored coins by coinprism? I see that its still resides on the bitcoin blockchain, which is a good thing for adoption. I was thinking of suggesting to my boss to create his own colored coin where users can redeem as credit towards the companies product / services. Say his coin is named WCOIN and he agrees to redeem it for $1 per a coin but users can only use it toward his products and services. Has any other company did something like this yet? And whats the legality of something like this? Technically its just like a gift card credit.

[Hazir]

I am not sure if I understand you correctly. Are you taking about creating your own Coin, as in altcoin? If you are indeed referring to this process. 
There were indeed coins in the past created by companies. The most recent example of 'company coin' is as I believe PayCoin created by GAW.

[BitcoinFr34k]

I am not sure if I understand you correctly. Are you taking about creating your own Coin, as in altcoin? If you are indeed referring to this process. 
There were indeed coins in the past created by companies. The most recent example of 'company coin' is as I believe PayCoin created by GAW.

He is referring to create a coin that is secured by a side chain of bitcoin's blockchain.

Side/colored chains work something like this: you send a very small amount of bitcoin to a specific bitcoin address and then that address would own the asset of the side chain. Any time you want to transfer ownership of that asset then you will need to spend that specific input to another address in order to transfer ownership.

IMO it is really a dumb concept and will be full of problems if ever adopted on a large scale

[box0211]

yea but paycoin was backed by full fiat dollars, which is hard to do since paycoin doesnt provide products/services as an existing company.

I'm talking about using an existing established business as a way of backing a coin's value.

Say a company like a computer repair shop issued a colored coin on the coinprism platform and it was called "WCOIN". Now the company states that they are willing to accept 1 WCOIN for $1 USD value of products/services in that company. Now that WCOIN has a intrinsic value of $1 credit in that store only. Think of it as gift card points.

What company has done something like this?

[BitcoinFr34k]

yea but paycoin was backed by full fiat dollars, which is hard to do since paycoin doesnt provide products/services as an existing company.

It was only backed by the fact that GAW claimed to support the $20 price. The fact that they did not follow through is an important fact. It was not actually possible to exchange a paycoin for a 20 dollar bill.

I'm talking about using an existing established business as a way of backing a coin's value.

I think gaw was pretty established. As mentioned above any "backing" is only as good as any given companies word.

Say a company like a computer repair shop issued a colored coin on the coinprism platform and it was called "WCOIN". Now the company states that they are willing to accept 1 WCOIN for $1 USD value of products/services in that company. Now that WCOIN has a intrinsic value of $1 credit in that store only. Think of it as gift card points.

This is only as good as the reputation of the company issuing such a guarantee.

What company has done something like this?

gaw

[moni3z]

yea but paycoin was backed by full fiat dollars, which is hard to do since paycoin doesnt provide products/services as an existing company.

I'm talking about using an existing established business as a way of backing a coin's value.

Say a company like a computer repair shop issued a colored coin on the coinprism platform and it was called "WCOIN". Now the company states that they are willing to accept 1 WCOIN for $1 USD value of products/services in that company. Now that WCOIN has a intrinsic value of $1 credit in that store only. Think of it as gift card points.

What company has done something like this?

None but I wish Amazon would, then I could buy books by exchanging for Amacoin as lately I've been buying a dozen a week for work where we handout new developers tons of material. Is color coins even out of alpha yet? I haven't kept up.

I am not sure if I understand you correctly. Are you taking about creating your own Coin, as in altcoin? If you are indeed referring to this process. 
There were indeed coins in the past created by companies. The most recent example of 'company coin' is as I believe PayCoin created by GAW.

http://coloredcoins.org/

[box0211]

What if a colored coin's backing is a company's product/services while also serving as a purpose of funding the company to create a new product/service for the crypto community? Say for example there was a new kickstarter like crowdfunding company, and all the projects on the system dealt with helping the crypto community out. When someone pledges $X amount of money to a project they receive a "colored coin" that can only be used at this merchants store along with funding the project. So its a dual purpose coin with the backing of the company. I'm still developing this idea before pitching it to my boss. Let me know if even makes sense or not.

[Harry Hood]

It sounds no different than airline miles or hotel loyatly points. You'd just be calling it a coin. Businesses have been doing this for years. Usually the conversion is more like 1 pt/mile/coin = $0.01 or less, but you can set the value at whatever you want. The legality would depend on the country but it's not at all illegal to have loyalty rewards. You'd probably have to print something on the coin that says it's "not real currency", if you were to make physical versions.