http://talk.btc.com/t/do-you-feel-there-was-misrepresentation-or-fraud-by-homero-garza-or-gaw-miners/129/23https://archive.is/VSmWoAbout the CAF, [Garza said:][1]
> When the coin opens to the public on Jan. 2 with what Mr. Garza says will be an anticipated market capitalization of $250 million, the company will partly back that with a store of **fiat currency worth around $100 million.**
So no, it wasn't just hyping the value of xpy premine coins. That's even more clear if you consider that having a lot of premine coins is not at all useful in supporting a floor price. If it were then lots of premined shitcoins would be supporting high market caps. You need fiat or bitcoin to move the market that way.
Second, you write "it makes far more sense to have a successful mainstream adopted coin that really holds a $20 floor." Well, sure, but without the CAF they had no realistic possibility of achieving that floor. Also relevant here is that they claimed to have a "first of its kind" [deal with Amazon][2], and other features ready to roll out, none of which were true. They had nothing to offer that could have driven mainstream adoption.
But you're right about the incompetence, the poor coverups, the dishonesty, etc.
Here's my summary:
* **People were enticed into buying based on some huge claims and promises.** Among other things, the claims about having massive fiat reserves that would be used to support a $20 floor, and about having first-of-its-kind partnerships with major retailers like Amazon.
* **If those claims had been true then paycoin would have been an instant success on a huge scale.** They would have been able to hold the $20 floor with a small fraction of the hundred million CAF. The kind of partnerships being claimed with Amazon would have made the coin unique in the world of crypto. Not even Bitcoin had that kind of merchant integration with Amazon. It would have been every bit as groundbreaking as investors were led to believe it would be.
* **But those claims were false. What was delivered instead was a broken peercoin clone.** No partnerships with any major retailers. Half-assed web site development. A shitcoin of no real value.
I'm not a lawyer, but "fraud" sounds like an accurate word to use here.
[1]:
http://blogs.wsj.com/moneybeat/2014/11/25/bitbeat-gaw-miners-to-launch-bitcoin-challenger-paycoin/ [2]:
https://www.cryptocoinsnews.com/josh-garza-speaks-paybase-launch-amazon-shopping-using-paycoin/When I was looking for one of those links I found this gem:
https://archive.is/e8Fpchttp://paycoins.biz/paybase-2/special-perks-for-paybase-premier-memberships-10000-to-be-given-away/Only 10,000 premier memberships to be given away! LOL
That site is a goldmine, since it hasn't been scrubbed like hashtalk.
https://archive.is/g2WMQhttp://paycoins.biz/paycoin/investing-in-paycoin/> As mentioned, the price of Paycoins when first introduced will be $20. The price will rise more and more each day as it is adopted into the mainstream. If you buy now, you will maximize your investment so now is the time to start investing!
[...]
> According to CEO Josh Garza, the coin’s initial anticipated market capitalization is $250 million. Then, he says the company will partly back that with a store of fiat currency worth approximately $100 million.
And:
> **What are the Risks?**
> Paycoins are very much different from other cryptocurrencies that have been introduced to us. Paycoin is not just another cryptocurrency. Its every detail was conceptualized in order to make cryptocurrency work for everyone – merchants, consumers, and investors. Paycoin is bank-backed, ensuring that the value does not bottom out. If you are familiar with Bitcoin you know that it can be used to make money from buying and selling at differing prices but that makes it unrealistic for real world banking. Some investors may be okay with fluctuating prices but not merchants and consumers. Therefore, Paycoin will have much lower risks than investing in other cryptocurrencies.
https://archive.is/0HEwdhttp://paycoins.biz/paycoin/> Paycoin will launch with global partners and a 250 million dollar backing,partnerships with e-commerce giants like Amazon, Wal-Mart and Target, and Paycoin goes public in December 2014. Big-ticket retailers especially appreciate the instant, fee-free Paycoin transactions and encrypted technology that prevents data breaches from happening
https://archive.is/C1akChttp://paycoins.biz/paycoin/paybase-visa-coming-this-december/> On Friday Dec. 5 2014, Josh Garza, GAW Miners CEO tweeted: “It’s official, the first cards issued on PayBase will be with Visa. We will start issuing them within the next two weeks. With all the buzz going on from GAW Miners’ previous announcement on their launch of Paycoin – the latest cryto currency, this just adds to everyone’s excitement!
https://archive.is/nnfadhttp://paycoins.biz/paycoin/what-are-paycoins/https://archive.is/1L4Z0http://paybase.org/paybase/paybase-the-new-banking-platform-on-the-frontier/> In order to get Paycoin to a widely used form of currency, GAWMiners ingeniously designed a plan that will ensure the adoption of Paycoin and its stability. Like other payment processors (Visa, Paypal, etc) Paybase is bank backed. Paybase will ensure that transactions can be easily made and that customers have full spectrum access to their money.
https://archive.is/wueFchttp://paycoins.biz/paycoin/paycoin-honors-program-may-not-be-bonded-gaw-to-earn-millions/https://archive.is/d03w4http://paycoins.biz/paycoin/the-new-20-base-paycoin-catches-a-break-and-price-manipulation-disproven/https://archive.is/sMyXvhttp://paycoins.biz/announcements/paybase-launches-december-29th/> Paycoin has a $250 Million reserve fund to help with mass adoption and world wide marketing
https://archive.is/fdXOuhttp://paycoins.biz/announcements/announcement-paybase-verifications/https://archive.is/V9kxEhttp://paycoins.biz/paycoin/paycoin-the-new-global-currency/> Paycoin is breaking a lot of records! People were astounded when it hit a market cap of $115 million in just 48 hours. No other crypto currency or currency for that matter has risen to these heights like Paycoin.
[...]
> Paycoin today is priced at $20 each but the value will quickly rise. There will only be a limited number of coins, around 13 million total, and that will drive the value up even more. Investors of Paycoin are anxiously waiting to see just how high it will go and how soon.
https://archive.is/F4cvghttp://paycoins.biz/paybase-2/save-on-all-purchases-with-paysave/> Paybase Express is the shopping interface connected to Paybase. It is integrated with major store platforms, including Amazon, Target, Walmart, Macy’s and Best Buy’s online stores.
[...]
> Look what Paybase users are saying about PaySave:
>” Yeah, I just paid $4 less for an Amazon order and I have no idea how or why. This is great,
>and requires literally no attention from the user whatsoever. Money saved, zero time required. “
>” Seamless, perfect service, truly saves money. I love it. Great tech support. “
>” This is fantastic! I placed two orders and saved a total of $12. “
http://paycoins.biz/announcements/josh-garza-to-address-paycoin-and-paybase-critics-at-miami-tnabc/https://archive.is/75z0m> Maybe Josh will reveal the major investors in the company. Supposedly, there is a $100 million dollar investment.
good thing I stopped using cryptsy after the paycoin incident 
