I think this coin will be killed by the devs dumping even more than any other coins.
I understood that the business idea is to sell hardware with near retail prices using these gpu coins. The price of the hardware then has to be defined by the value of both USD/BTC and GPUC/BTC exchanges.
Once someone makes a hardware purchase, the devs have to dump the coins back to the market to convert them to BTC and then USD to cover the expenses.
I also wonder how they handle taxes... and warranties.. and refunds (think of exchange rates).. The business is operated by this one Jaymes Reilly guy only, what happens if he gets sick or dies accidentally or gets arrested or something?
How do they define the exchange rate (and the price) when purchasing the hardware? Can you make a couple of really high price buy orders at exchanges before making your purchase and have the hardware really cheap?
It's a huge risk for the devs, since they might not get compensated for the GPUs if nobody is buying their GPU coins or the value of GPU coin has dropped between customers purchase and their dumping. Why include the gpu coin in the mix?
If they can sell hardware cheaper than other online stores and still make a profit or even cover the expenses, why are they not doing it on USD already? If they can, why can't someone else and how come there isn't some store selling cheap gpu's and having them in stock all the time? If they can't, well, then there will be no business.
It will never work.
What do you think the merchants who take BTC are doing? They do the same thing: Dump the BTC immediately for USD, unless their suppliers start taking BTC. This is basically what the CEO of Overstock.com said.
Tax: CEO already posted the thing about taxes: GPUcoin is considered as a commodity and when you buy GPU with GPUC, you are exchanging commodity with commodity, it is tax free.
Warranty: The warranty is an issue but it is good as long as the CEO stick to Asus, MSI, Gigabyte because these guys do serial based RMA, but no Sapphire & possibly XFX.
Returns: The refund is tricky. Because when you buy a GPU with GPUC, you are probably doing it at a good exchange rate.
IF the refund is in form of GPUC: a the buyer wants a return and sees the exchange rate is lower than before, he probably will not do it. And if the exchange rate is higher, the CEO losses money to buy GPUC with BTC(which also involves variable exchange rate), or simply give back the original amount of GPUC out of his business GPUC wallet.
IF the refund is in form of USD: It is actually better for both sides because at the time of the purchase, the CEO sold the GPUC for USD at the given exchange rate at that particular moment. So the CEO refund the USD, for the GPU that he also paid USD to buy from his supplier. But the trade-off is that this process behaves like some way to preserve the value of your GPUC by enforcing its price at least at the time of purchase of the GPU. But of course, there will be shipping fees, and possibly restocking fees involved.
The 3rd way would be the following: Since at the time of purchase, you paid GPUC for a fixed USD priced GPU at that particular exchange rate for USD, the CEO can simply do the refund based on the exchange rate of USD-BTC-GPUC at the time of refund, and refund the GPUC back. But it is just redundant, and this is exactly most of the merchant who takes BTC doing, including Overstock.com. (but this helps with the coin a little bit because it makes buy orders and help with circulation)
But again, for any Asus, MSI, Gigabyte GPU, it is serial based RMA. When the CEO resell the returned GPU(surely needs to be at some discount), the next buyer should not have problems as long as the GPU is in good shape and functional as it should.
