MiamiCoin cryptocurrency lost 88 percent of its value in less than a year

Miami, the host city of the Bitcoin 2022 event that we recently visited, does not own or manage the MiamiCoin cryptocurrency, although the currency has had the support of Mayor Francis Suárez, who at one point suggested that he raised “the possibility of being able to run a government without citizens have to pay taxes.” Now Quartz reports that since its launch on August 3, the value of MiamiCoin has dropped by as much as 95 percent.

The CityCoin plan requires miners to purchase tokens on the Stacks (STX) blockchain that they can use to bid for MiamiCoin. The winning bidder receives 70 percent of their investment in MiamiCoin, while the city receives the other 30 percent in STX tokens.

MiamiCoin Value — May 16, 2022

MiamiCoin Value — May 16, 2022
Image: OkCoin Exchange

At first, things seemed good — Suárez saying the city received a $5.25 million payment from the project on February 2. However, 17 days later, the The New Herald quoted the mayor as saying “I don’t know if it’s going to work,” as the value of the coin has dropped to around four-tenths of a cent, and today stands at $0.0044, down more than 88 percent as reported by OkCoin, the only exchange that supports trading of the currency. Separately, Quartz obtained an email from CityCoins to the mayor’s office citing concerns that their statements could jump “regulatory wires”: if the SEC investigated and decided that the coin is an unregistered security rather than a coin, both CitcyCoin and the city they might have to pay investors back.

Quartz reports that Patrick Stanley, listed as a supporter on the CityCoins website, has apparently been a frequent contact for city officials and says the coin could be used for local business transactions or universal basic income. None of those apps have become real, however Stanley tweeted a picture today of people apparently learning how to develop projects that could use cryptocurrencies in some way. Quartz he also mentioned an open city proposal, which would see the coin serve as a reward for callers reporting rideshare scooters left lying around.

Of course, Miami is not alone in its CityCoin push. In November, when Suarez promised to receive a Bitcoin paycheck, then-new New York City Mayor Eric Adams said he would accept his first three Bitcoin paychecks to complete the hack, welcoming CityCoins. to the area. Bitcoin peaked at $69,000 around the same week and is currently trading at around $30,000. The NYCCoin project that launched on January 24, 2022 has lost 98.58 percent of its value and is trading at $0.0014.

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