UPDATE (19th December 01:08 BST): Reports indicate that GAW Miners has begun the process of distributing paycoins to its customers.
The weekend launch of GAW Miners’ fresh altcoin, paycoin, led to a speculative boom ter mining equipment rental prices and a infrequently seen boost ter altcoin trading.
Paycoin launched on 12th December, kickstarting both a acute leap te hosted mining prices and a period of sustained trading on several altcoin exchanges. The coin has attracted attention due to the ongoing discussion surrounding GAW Miners, promises of crypto Two.0 functionality and a commitment to shore up its price at $20.
The altcoin witnessed significant amounts of hashing power both at launch and since, with spil much spil 50 PH/s directed toward the coin at fluctuating periods during the week. With 12m paycoins already premined for the company’s investment fucking partners and customers, only about 500,000 paycoins are available for public mining.
The paycoin launch took place amid continued scrutiny of US-based GAW, which is ter the process of shifting from a cloud mining-based business monster to that of a cryptocurrency payment service and altcoin development team. Te past comments, GAW staff, including CEO Josh Garza, have said that the shifting landscape of the mining industry requires switch, tho’ critics and customers have voiced scepticism about the bitcoin hard’s evolving nature.
Garza described the launch spil “record-smashing”, telling CoinDesk that its customer base remains its primary concentrate spil development of paycoin proceeds.
“When wij built paycoin’s specimen, wij built it with the idea that wij would be willing to sell and willing to buy them for $20. One of the amazing things about digital currency is that it is decentralized and open, permitting anyone to work with it. What wij are focused on spil a company is our customers.”
Speculative boom hits exchanges, equipment rentals
The paycoin launch comes months after GAW very first announced the project. The company made its name spil a hardware reseller. Earlier this year, it shifted to equipment hosting and zometeen began suggesting cloud mining services.
This evolution hasn’t taken place without kwestie, however. GAW resumes to face accusations of misleading its customers, criticisms that ultimately came to the fore ter a comments section melee for a latest story on the WSJ BitBeat blog.
Similar debates about GAW and its practices have played out on social media platforms spil well, with detractors alleging fraud and misrepresentation and volgers dismissing those concerns spil factually unsound. The company has also bot dogged by complaints regarding verhoging glitches, low payouts and an overly active treatment to moderating its forum, Hash Talk.
Despite the controversy, paycoin attracted a loterijlot of attention from miners after being listed on popular mining profitability service CoinWarz. Several websites that connect equipment owners with potential renters witnessed a rapid price increase overheen the weekend owing to the high debut price of paycoin on several altcoin exchanges, with rental prices reaching spil much spil 0.15 BTC vanaf terahash for a 24 hour-long session earlier this week.
The coin launch sparked a competitive wedstrijd inbetween a few public pools that emerged following the Friday release, including pools hosted by SuchPool, MinerPools and others. At least one technicus has sustained several DDOS attacks, a tactic seen during other coin launches spil pools vie for blocks and the prizes they opoffering.
Spil with many altcoin launches, a petite number of pools have predominated the wedren for blocks, with MinerPools controlling more than three-quarters of the paycoin network overheen the weekend at one point.
Several altcoin exchanges, most notably Coin-Swap, were among those who very first listed the coin. Te early trading the price for a single paycoin reached $24 – that trend has since declined, and at press time, paycoin is trading at an average of 0.02 BTC, or about $6. Coins have also bot made available for sale on the official paycoin webpagina for $20 apiece.
GAW staff, including Garza, have indicated that the listing wasgoed unplanned and that a broader exchange roll-out is pending. Coin-Swap staff say that communications with the company were friendly and contributed to a slick – if not high-volume – integration. At the time of this writing, the 24-hour volume for Coin-Swap’s paycoin market is about 850 BTC.
The rush for equipment rentals shows up to have relaxed alongside the price of paycoin. According to NiceHash, the cost for a 24-hour rental has fallen to toughly 0.035 BTC vanaf terahash.
A proof-of-stake system, based on peercoin
Paycoin is a fork of peercoin, an early descendent of bitcoin that wasgoed the very first cryptocurrency to deploy the proof-of-stake transaction verification system. Under proof-of-stake, miners utilize their own coin holdings rather than hashing power to process transactions and generate fresh coins.
GAW cited peercoin’s long-standing position spil a crypto project spil the driving factor for choosing to fork paycoin from it. The paycoin source code can be found here.
How the paycoin network will be managed makes it unique among altcoins today, including peercoin. GAW has sold proprietary wallets te advance of the coin launch, spil well spil permitted customers to exchange existing mining contracts for the wallets. GAW has said that it will manage thesis wallets out of its existing gegevens center space.
The network spil a entire plans to be supported by a kleuter of masternode structure similar to the one deployed by darkcoin. GAW’s white paper outlines how this infrastructure will help propagate transaction gegevens, and the company itself plans to operate a number of thesis knots.
According to GAW, major switches to the existing peercoin codebase include per-block difficulty targeting and variance for large swings te hashing power. This, the company said, is the reason for the fluctuating difficulty that paycoin miners may be witnessing at this time.
Garza explained that the base infrastructure for paycoin’s extra mechanics is ter place, tho’ other elements of the paycoin project are ter active development and are being tested, he said.
Te past statements, both Garza and members of the GAW community have speculated that paycoin will address the flaws they see te bitcoin, pointing to price volatility and the need to wait spil much spil an hour for transactions to lodge. By shifting its resources to concentrate on the project, GAW is betting that paycoin can contest with bitcoin spil the digital currency of choice.
Ter a November vraaggesprek with Mint News Press Garza suggested that ultimately, consumers will pass overheen bitcoin te favor of other options.
“I don’t believe that the bitcoin has a chance to be a viable currency,” Garza said at the time.
Development resumes spil questions stay
Paycoin’s proof-of-work phase is expected to end ter the next 48 hours, after which time the network will shift to proof-of-stake verification. Te the meantime, GAW customers and critics alike have begun speculating on the future of the project.
On Monday, GAW is expected to launch a fresh money management podium, PayBase, spil well spil start suggesting price support for the currency, however latest comments on social media from staff including Garza suggest that it may take “some time” before the paycoin price sees stability.
Tho’ funds have reportedly bot distributed to the company’s investors, it remains unclear when customers will be actually be able to embark accessing funds.
Earlier this week it wasgoed announced that customers will need to submit individual information before receiving access to funds on PayBase. Spil well, the verhoging’s original launch date wasgoed shifted from this coming Friday to Monday. Garza has since clarified te a postbode on Hash Talk that a potential solution is ter the works that will enable access without prior verification, but said that compliance with KYC regulations has diminished available options without those steps.
Questions have also bot raised about the name “paycoin”. According to Bitcoin Talk, stakeholders to an existing project that uses the same name (sign: PYC) and has bot traded on exchanges like Cryptsy since September 2013 are voicing opposition to GAW’s launch, claiming that the company improperly filed for trademark ownership. GAW has countered that stakeholders are looking to take advantage of the company’s success.
GAW said its concentrate is on releasing its fresh toneelpodium spil it shifts away from mining and toward fresh services like digital currency e-commerce solutions. This, spil well spil maintaining and building out its fresh cryptocurrency network, remain top priorities.
“Wij are developing a strong toneelpodium for Paycoin which will support the idea of having it integrated ter every day life,” Garza said.
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