Josh Garza today responded about the criticism that has grown lately about GAW Miners. He gives some transparent information to settling some of the issues people have had. For the next 30 business days, Garza says he will publish one question each day for the month of January, in the Hashtalk forum. These questions will be taken specifically from the Paycoin critics, that he will directly answer to clear the conflict.
Before posting the first of the three questions for January, Josh posted some interesting facts about Paybase and Paycoin. Among these facts were 3 that especially stood out:
- PayBase is a cryptocurrency payment processing business owned by Business Technology for Cryptocurrency, LLC (BTC).
- BTC is the parent company of GAW Miners (GM), a Bitcoin and Litecoin mining business.
- PayBase was built to bring cryptocurrency mainstream, and to do so as a properly licensed and compliant MSB (Money Service Business).
Now for the questions…
Question - Day 1: 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 $20 USD 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.”
At Hashtalk, GAWCEO goes on to explain that they did no more at this point because they simply could not. They have come to the realization that the CFTC (Commodity Futures Trading Commission) can hold them liable for price manipulation by using these practices. Therefore, the $20 floor that GAW planned on using cannot and will not be used for Paycoin and Paybase.
GAW plans to get Paycoin back up by making it usable as a payment form and working on payment processing.
Question - Day 2: How will you increase the value of Paycoin?
GAWCEO answers this question, saying that they will use their talent and creativity to bring to fruition all Paybase features that have been promised publicly. The good news is that the majority of Paybase’s main functions should be available within the following quarter, he adds.
Question - Day 3: Why has it taken them this long to develop a platform that appears to have little functionality and no merchant support?
To sum up the answer given, basically GAWCEO reminds everyone that they were actually ahead of their schedule, according the published timeline of events. He then posts a reference to the timeline with the status of each event:
- 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)
Hopefully these questions and answers from GAW about Paycoin and Paybase will re-administer investor trust and help regain support for Paycoin. We will post more questions and answers as they are announced!
“30 Questions to GAW from the Community” has been discontinued. The thread was completely removed from the Hashtalk forum.
Our legal team wanted to handle this differently.
Update will be coming from our official website stay tuned.