The market reads this perfectly. There is no incentive to bid the coin up.
The lower the price the greater the return of those turning in their coins.
What? If people believe gaw will go through with this, they should be willing to pay a high price for the coin now. Wishing the price was lower does not mean you won't do something that makes it higher. Am I misunderstanding you?
GAW isn't promising to buy your coins for $20. They're promising you a share in payouts that add up to $20 per coin over years if not decades. Factor in inflation over those years or decades and the payments don't even have a present value of $20. Factor in the probability of GAW not staying in business for that many years and it looks even worse.
If you pay $5, and a million coins are put into the buyback program, your ROI is over four years. Four years just to get the five dollars back. If GAW goes bankrupt or defaults on the payments in less than four years you lose money.
Even at $3 you need GAW to stay in business for 2.5 years, and stay profitable enough to keep making the payments, just to break even. What probability do you give them of being able to keep paycoin/paybase going that long?
