Hilarious. Most of it is vague generalities and marketing blather. The rest is just gibberish, such as: "The tabulation of these figures is very much like a mathematical equation – there is nothing arbitrary to our strategy – because this project requires at least one constant."
Reading between the lines: the $20 floor promise is where they're legally most vulnerable. This is an attempt to weasel out of those problems. It was written by someone who doesn't understand math or economics and who, I'm guessing, didn't run this by any actual lawyers.
Preserved for posterity:
Wednesday 07 Jan 2015
Paycoin and the $20 Base: An Overview
As PayBase has a vibrant community of users worldwide, this blog will serve as yet another means of updating readers about important events and information involving various milestones and points of clarification.
Specifically, this post addresses – and further explains – the financial model behind Paycoin, with regard to the $20 floor established by PayBase.
Please note: For those already familiar with this issue, and concerning those individuals who have voluntarily written about the reasoning behind this pricing decision, you have our thanks. We nonetheless want to be on the record with this post – free of ambiguity, or any room for conjecture or misinterpretation – so our decision-making process is transparent and intelligible.
The Financial Model
Since cryptocurrencies are still in their infancy, with all the attendant volatility associated with an enterprise of such dynamic activity, the financial model for Paycoin reflects the existence and combined performance of other coins.
Thus, our approach involves a methodical analysis of forecasts about expanded market capitalization, the total number of investors and the collective purchasing history among users. These factors, as sources for repeated examination and calculation, reveal what the sustainable price for Paycoin should be.
The tabulation of these figures is very much like a mathematical equation – there is nothing arbitrary to our strategy – because this project requires at least one constant.
And, because Paycoin is an accessible currency, modeling the coin with a $20 valuation complements our business philosophy.
The mathematics structured to support this goal underscores this fact: That, given our emphasis on expanding market capitalization, and crafting the mechanisms to ensure the market did not grow faster than the rate of adoption among users, the overall growth rate would be consistent to sustain the $20 price.
Our pre-IPO disclosure reinforces this assertion about the $20 figure.
Which is to say, it made sense – it still makes sense – to model things based on the real (and measurable) spending and buying habits of users.
In the end, however, we know that the marketplace controls the price of the coin . . . but when enough people come together, and when that scenario seems very much achievable, the $20 valuation is quite fair.
As to the statement about PayBase purchasing Paycoin – that "We would buy 'them' for $20" – its origins are the result of the modeling described above.
Our Core Belief in Paycoin
We believe in Paycoin, period.
To reiterate: We have not wavered in our position; we have not faltered regarding our conclusion.
We stand by our reasoning.
More importantly, we stand behind Paycoin – and we seek to uphold the promises we make.
-PayBase
his twitter followers have been re-tweeting this story for the last hour.
