Where does all the cash come from? It came from the customers themselves! People buying hashlets directly, their 10% cut of market sales, hashstaker sales, etc.
No, that would be a Ponzi scheme, almost by definition.
No... that's called
business. All business tries to keep their existing customers to keep a steady stream of money coming in. Getting new customers is harder. Ponzis do it by making outrageous claims (yes, I already know what you are going to reply here.)
GAW has setup a business where they get people to continuously re-invest... that's business school 101.
The initial cash comes from the fund. Since about half of Paycoins will be immediately staked, GAW is betting that they have enough support in that fund to withstand the initial massive dump.
Correct. only about 5-ish million of the initial 12-ish million will be to ZenCloud miners. The vast majority of coins will be staked in the primes from their "market maker" investors.
After that, the value added is the ability for cryptocurrency to do what Apple Pay and Paypal do, only much more cheaply. The transaction costs are so much lower with crypto that there will be incentive to use the system, and companies/people will buy coins, thus providing the cash. Paycoin will be chosen over other crypto because its tiered system allows for instant transactions with low overhead and because the price support will add stability to the coin's value relative to other currencies.
At least, that's the theory. As should be obvious, there are a lot of ways this could go sour.
Agreed. The ICO is just a small part of the whole paycoin economy. The hard work is going to be over the next 6 months to get traction for the coin. GAW has their work cut out for them, but if the launch is successful and you have interesting concepts in Paybase, where people can pay bills, use their Visa gift card, convert funds easily... they will start out way ahead of other coin launches.
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