GAW Miners and the Disappearing $20 Paycoin Floor

In addition to managing the development of the decentralized paycoin currency, GAW Miners operates a paycoin brokerage, an exchange for the currency and a network of coin-generating wallets - an ecosystem that many suggest counters the decentralized spirit of the cryptocurrency movement.

Opponents claim that GAW Miners and its CEO, Josh Garza, reneged on promises to back the coin at $20 on the open market, as well as a broader commitment to provide a mechanism - the floor - that was meant to shield it from market speculation.

By contrast, GAW Miners argues that the plan to ensure customers can "Use your paycoins in PayBase at a $20 value" was attacked by groups opposed to the success of its project.

Underlying the debate is a lack of clarity among some in the community on whether GAW and Garza definitively committed to the floor and its $20 value, and if they did, how long such a price support mechanism was meant to be enacted.

Ultimately, the plan to institute the floor was put aside after what the company described as uncontrollable paycoin sales volume and concerns that GAW could be held liable for manipulating the market should it become more involved with its actions in the market.

A review of posts from Hash Talk, as well as insights gleaned during a new interview with Garza, suggests that GAW actively used language that was likely to invoke the idea of both the floor and the $20 value when pitching the project.

The idea that retail giant Amazon may partner with GAW to accept paycoin for purchases in particular had been circulated by Hash Talk users, but according to Garza, GAW opted not to correct prior misconceptions about the anticipated partnership because "We thought it would add more issues to things, so we just ignored it and just moved forward".

Garza told CoinDesk that GAW never explicitly committed to buying paycoins at $20 without question.

The use of these measures was first disclosed on 22nd December, when Garza indicated that trading bots controlled by GAW were actively participating in the paycoin market on cryptocurrency exchange Cryptsy.

In a post later that day, Garza outlined how plans to keep the floor at $20 were disrupted by high selling volume on the PayBase site, as well as a coordinated effort on the part of malicious actors to drive the price below the floor using previously accumulated paycoins, citing evidence collected by GAW staff.