ShapeShift.io Drops Paycoin, says, “high threshold of evidence as fraud”

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In what was seen as a sudden and dramatic move to many in the cryptocurrency community, the coin exchange service ShapeShift.io has announced it will be dropping support for GAW Miner’s Paycoin.

In a post on reddit, the company officially stated it would be dropping XPY because of “a high threshold of evidence as fraud.”

The company stated the following:

We’ve looked further into Paycoin, and while there are some criticisms that are superfluous (a coin being “premined” does not necessarily make it a scam, for example), there is one particular issue that we cannot ignore. Josh Garza and the Paycoin admins made a very clear promise – a guarantee – which is that when Paybase opened (a Paycoin marketplace), that Paycoins would be bought there for $20 each. That was a factual promise, made by the creator of the coin.

They also further elaborated with pictorial proof and links of the promises made by Garza regarding the Paycoin floor of $20.

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Coin Fire

Coin Fire is a cryptocurrency news site started on June 6th of 2014. The site focused on hard-hitting investigative stories. Coin Fire was acquired by 99Bitcoins on October 2015.

7 Comments

  1. Walter Mulder on

    You guys obviously didn’t research this article very well and are biased against GAW.

    Josh Garza said in a statement:
    “”
    We can only do so much. We can NOT counteract the downward dumping force of the entire industry. We were upfront about that.

    I always said two things. We would buy paycoins at $20, or we would use our resources to manage to $20. They both mean the same thing. We will do everything in our power to make the price $20. And that’s what we are doing.

    We have also said we would not be able to handle everyone dumping at the same time, and that’s what has happened. Paybase is gaining ground, but it’s going to take some time.”

    Shapeshift was probably looking for a quick profit, honestly never heard of them before this article.

    • Coinfire is just reporting the facts.

      GAW never said “or we will use our resources to manage to $20”. That was added after they decided the $20 floor was unfeasible. (few days ago)

      Here’s just a few of the times GAW talks about the $20 floor:

      https://archive.today/W3OTH#selection-845.0-851.51
      https://archive.today/erGhz
      http://webcache.googleusercontent.com/search?q=cache:8uqr_DdF00oJ:https://twitter.com/gawceo/status/546944991747403776+&cd=1&hl=en&ct=clnk&gl=us%22
      http://i.imgur.com/HAIL73L.png

      How many posts are there from GAW clearly detailing the risk that a $20 floor might not happen?

      • Walter Mulder on

        You can post all the links you want but you obviously don’t want to see the context.
        I wonder if any of you guys even read the white paper.

        “We will buy your XPY for $20 each with NO verification and as soon as you open your account!”

        Which they did but they didn’t anticipate on people opening several accounts to avoid limits (which I believe is fraud by those users)

        “Want to know how we will offer a $20 floor? The answer is easy. We will move the market with our buying power. So the market will be above the floor.”

        Who said they didn’t try? Statement was a little bit naive and unprofessional and something that backfired on them

        “New Visa card for Paybase will use the same $20 per coin minimum :) #XPY”

        The new visa card hasn’t even been released yet. ETA is later this year.

        Keep spreading FUD. Speak to you again after the mainstream media start reporting when Paybase is out of the beta phase. He who laughs last, laughs best.

      • Walter Mulder @imwithwalter ·
        @gawceo good that you’re leading by example

        Walter Mulder @imwithwalter ·
        @gawceo: Bitcoin falling, Paycoin rising. Convert your Bitcoins for #XPY!

        The same way Josh and I do, it’s not hard taking money from people. We are cleaning house as we speak before the feds come knocking!

        Video proof, Gone
        HashTalk deleted threads, Gone

        I need more coffee and God Bless You!

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