Paycoin and Josh Garza are very hot topics in the world of cryptocurrency right now. unfortunately for the neutral spectator, none of the news coming forth is positive, which will affect Bitcoin and other digital currencies for many days to come. Steps are being taken by several companies in order to distantiate themselves from Paycoin, and ShapeShift.io is the latest addition to that list.
Paycoin (XPY) had been added to the ShapeShift.io platform relatively quickly, due to an increasing demand from consumers and businesses alike. The “next Bitcoin” was born, so they claimed, and everyone wanted to be a part of this new revolution. On top of that, the Paycoin software (as in the coin itself) worked perfectly fine, and a lot of buzz was created. As a company trying to make a name for themselves, ShapeShift.io decided to add XPY to their list of digital currencies. The smart choice at that point in time, or so everyone thought.
ShapeShift.io positions themselves as “coin agnostic”, as they have no idea which digital assets will endure the test of time. When the general cryptocurrency market is excited about a new project or coin, it is mandatory for all companies to take notice of what is going on, and work on a strategy to capitalize on the momentum.
One interesting note is that ShapeShift.io, even though they shouldn’t even feel the need to explain this, clearly states : “We do not ‘endorse’ any coins, nor do we heavily vet the prospects of any asset before we integrate it. We simply listen to the marketplace, which can be a confusing and cacophonous arena.” It was a business decision, and it turned sour, and now they are correcting that mistake.
Even though the scam accusations against Paycoin (XPY) are piling up day by day, ShapeShift.io feels people should generally be more careful with the word. However, they do understand the general strong and outspoken reaction in regards to scams. Cryptocurrency is plagued with various scams, ponzi schemes and whatnot, and all we can do to change that, is look for each other;
“We’ve looked further into Paycoin, and while there are some criticisms that are superfluous (a coin being “premined” does not necessarily make it a scam, for example), there is one particular issue that we cannot ignore. Josh Garza and the Paycoin admins made a very clear promise – a guarantee – which is that when Paybase opened (a Paycoin marketplace), that Paycoins would be bought there for $20 each. That was a factual promise, made by the creator of the coin.”
While the promise made by Josh Garza will have dazzled plenty of cryptocurrency investors and speculators, guaranteeing the price of anything is simply impossible, especially in a volatile market such as cryptocurrencies. While it remains mathematically possible for Mr.Garza to take the Paycoin value to US$20, thanks to his alleged US$100m in capital, is is very unlikely to ever happen.
Paycoin (XPY) currently sits around a value of US$4 and continues to drop on all available exchanges. To make things even more ridiculous, Josh Garza now claims he has never promised a market value of US$20 per XPY. Unfortunately for Mr. Garza, the internet has a habit of providing evidence whenever it is needed, as you can see in this image. Or by clicking here or here.
ShapeShift.io considers all of the available evidence as fraud, and has therefor decided to remove Paycoin (XPY) from their platform immediately. If anyone would like to continue this debate with the people running ShapeShift.io, you can meet them in person as the Bitcoin Miami conference.