Paycoin – Always a Catch when Josh Garza Makes A Promise (UPDATED)

WARNING! Garza’s “Honor Program” could lock up your Paycoin for 91 years! (no joke)

UPDATE 1/20/2015: The SEC is allegedly investigating Garza and GAW Miners!

If you’ve been following the whole Paycoin debacle in the cryptocurrency community, you know that it has been similar to countless other pre-mined, ICO-style coin launches. Lots of promises, price targets, and hype followed by a reality check when the free market takes over and all the people who believed the hype wound up buying an overpriced altcoin that they’ll never get a positive return on (aka “bag-holders“).

Garza’s Role

After Josh Garza, CEO of GAW Miners and the public face of Paycoin, backpedaled frantically on his promise to buy any and all Paycoins at a guaranteed price of $20 each the whole thing pretty much fell into line with nearly every other altcoin that has ridden a wave of extraordinary hype followed by a market crash in the span of 72 hours or less. Those who were convinced that the hype was real wound up holding bags of virtual money they paid way too much BTC for with no way to exit anywhere near their break-even point. Meanwhile Garza and his alleged partners and/or early investors made a killing selling miners, “pre-mined” coins, and GAW’s newest ingenious product, Hashstakers, to the thousands of people who are now officially bag-holders.

Paycoin downtrend since launch

Paycoin went from 0.05 BTC to 0.01 BTC in about a week

I’ve been involved with GAW’s cloud mining service since the very beginning, when a hardware mining device I purchased from GAW (they used to be in the business of selling re-branded Chinese scrypt mining equipment) came with a complimentary cloud equivalent in their new online mining platform, Zencloud. In the beginning, the profits were fantastic, and I wound up purchasing about 150 Mh of cloud miners from them early enough that I actually did see full ROI before all this Hashcoin/Paycoin stuff began. Being entirely in the black on the whole thing, I had absolutely nothing to lose by sticking around to watch the Paycoin saga unfold and possibly even make some additional profit from it.

Long story short, when Paycoin finally hit the public exchanges, the price fell to around $8 in under 36 hours. Garza was taking flak from thousands of bag-holders and was (allegedly) even contacted by a federal agency regarding his promises to manipulate the price of the commodity to a specific dollar amount on the open market.

Garza’s Latest Scheme: “Honor”

Having watched Josh Garza’s actions, statements, and endless public commentary for months now, I have a pretty good feel for his modus operandi. The man is a salesman, and a rather good one, to be honest. He has had a seemingly unlimited number of spins and gimmicks up his sleeve throughout the Paycoin launch and subsequent disaster. He is a talented and experienced liar, and he is skilled at making money. He also is more than willing to bend ethical boundaries in order to accomplish his goals.

So when he published this announcement tonight stating that he would, in fact, uphold his promise to buy every last Paycoin on the market for $20, I read it with great interest. And then I read it again. And again. And again. Because something just wasn’t right about it, but I was having trouble pinpointing exactly what the scam was this time. Then a friend of mine sent me the link to this statement Garza published on his heavily-moderated forum website, which I am including as a screenshot below since he is likely to update or remove it at a later date when he realizes it reveals too much about the scheme.

$20 paycoin will take 91 years

“I am a man who stands by my promises… [even if it takes 91 years.]” -Josh Garza, Jan 12, 2014, on buying Paycoin for twenty dollars each

How the scheme works

Garza creates the Paycoin Honor Program which consists of a “vault” to hold Paycoins owned by people who want to get the $20 per coin they were promised. Managed by an “authenticated” third-party, it is effectively an escrow account. Would-be participants have 30 days (Feb 1 through Mar 2, 2015) to sign up for the program. Here’s the tricky part: Garza guarantees he will purchase $100,000 worth of Paycoin each month from the escrow account. Eventually everyone who wanted $20 Paycoin will, in fact, receive that amount of money for each of the $XPY they send to this service after signing up (which requires unspecified “account verification”, by the way).

$20 Paycoin in... 91.6 years!

If everyone sends their Paycoin to the “Honor Program” it will take 91.6 years to complete the $20 buy-back program

If you wait long enough…

It sounds great on paper because $100,000 sounds like a lot of money. But let’s do some math. There are approximately 12,400,000 XPY in existence, 6.9m of which are locked up in “prime stakers” (source). If the remaining 5.5m or so Paycoin were sent to this Honor Program escrow wallet, it would take 91.6 years to buy them all for $20 at $100k per month.

Obviously not everyone is going to do this. There are the almost cult-like followers who actually believe they’ll be able to use Paycoin to buy goods from Amazon and Walmart at a discount (which Amazon has publicly refuted many times). There are plenty of investors (now bag-holders) who just want out of this mess and are waiting for the open market to give them an exit opportunity that will minimize their losses or possibly even result in a little profit. And there are surely a large group of individuals who were convinced to purchase Paycoin at ludicrously high prices after reading about it in off-beat news, blogs, or whatever. The last group may consist of a good number of people who’s first experience with digital currency is Paycoin simply because Garza did such a good job with PR and probably brought a lot of new people into the scene. Those poor unfortunate souls. 😉

Even if only 500,000 XPY are sent to the program it would be 8.3 years before every last participant were paid $20 per coin. If you think Paycoin will even be around in 8 years, well, I am impressed with your optimism!

So, that’s Garza’s latest scheme. It is obvious that he is doing at least two primary things with this plan:

1 – Buying time. Like, potentially more time than most of us even have left to live!

2 – Removing Paycoin from the marketplace for what might as well be a lifetime. Is this good or bad? Maybe good for those who don’t send their XPY to the program because it will increase scarcity (that would certainly include Garza himself!), but bad for those who do send their coins in because they aren’t likely to ever be completely bought out before GAW dissolves, cryptocurrency technology is replaced with something superior, or everyone dies of old age.

Upon reading that announcement it is clear he does a fantastic job of hiding the facts, doesn’t he? Most people outside my profession don’t realize it, but knowing how to effectively and efficiently use Google is a seriously major portion of my job as a systems engineer, web developer, and technical project manager; and it took me about 4 minutes and half a dozen web searches (meaning the information is rather difficult to find) to locate a breakdown of how many Paycoins even exist and what the original distribution of the coins was:

PayCoin is a PoS/PoW currency based off of Peercoin and that runs SHA-256. It will have 12.5 million coins total in the PoW stage available for mining, but 6.5 million coins were reserved by GAW for their large investors and 5.5 million coins for customers who collected HashPoints to trade in for their equivalent PayCoins.

Just one more scammy facet

Garza standing in a datacenter full of digital currency mining hardware

Garza, on the right, controls nearly 2% of the world’s SHA-256 cryptocurrency mining power.

There’s always more, too, and frankly it’s difficult to not go off on another 1,500 word tangent from here, but I will keep it short.

See how the numbers in the quoted section above make it sound like crypto currency miners, like me, had an excellent shot at earning some of the 300,000 or so Paycoin that were released during the (very brief) proof-of-work phase? Well, keep in mind that GAW is a mining company and they are reported to control 5 petahashes (of 288 total) of the bitcoin mining network, which is about 1.73% as of Dec 1, 2014. That is a LOT of mining power, and you can bet every last bit of it was mining Paycoin during the short mining window after the coin was launched. Just one more example of how skilled Garza is at misleading people.

And finally we come to the part of the equation that I give Josh Garza extra credit for in the Evil Genius category. Similar to how Hashstakers work, this Honor Program has a powerful side-effect for the XPY market overall: it takes even more Paycoins off the market, locking them up for years in a “vault” (as Garza called it in the announcement). This increases the scarcity of XPY on the open market, which in theory, and based on elementary economics, will make it much easier for Garza to manipulate the market in a bullish direction, since he not only (presumably and very likey) controls the vast majority of XPY in circulation but also has the raw capital to gradually push the price higher and higher. This fits in nicely with his overall business plan of turning Paycoin into a digital currency that people will actually use in everyday ecommerce transactions, but through which they will have to pass one or more of Garza’s gateways each time they want to spend it.

We know Josh Garza is willing to hide extra fees wherever possible. We know he’s willing to lie to the public. We know he is pulling the wool over our eyes with this latest scheme. So, if you’re going to be involved with Paycoin, just be aware that every aspect of it has a hidden cost, a twisted truth, or in some cases is a bald-faced lie. One thing is for sure: Josh Garza is not a benevolent and transparent businessman. Rather, he is a shady, well-dressed salesman who wants to lock up your Paycoin for 91 years and call it “chang[ing] the world of commerce and finance.”1

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30 thoughts on “Paycoin – Always a Catch when Josh Garza Makes A Promise (UPDATED)”

  1. Asif says:

    The information you posted is not fully accurate.
    The total amount of Paycoin is less then 12.5M
    It is true that 6.5M went to GAW, and 5.5 went for the customers, but less then 300k were actually mined during the POW mining stage.

    There is a little over 5.5M that is in circulation right now.

    You can see the total number of coins on the XPY blockchain:
    https://chainz.cryptoid.info/xpy/#

    1. Marshall Stokes says:

      Thank you for the link, it really helped me find some accurate numbers to use in my calculations. I have updated the post with correct numbers and publicly stated that my initial calculations were way off.

      Can you get me (and the readers here) a source on the 300k PoW number? I can’t find anything that shows how many coins were mined during the PoW phase when the general public had a chance to mine XPY.

      1. Avi says:

        https://gist.github.com/jyap808/3f99de084df18ce325a7 has an analysis of how many coins were produced during pow.

        Most were not mined by Gaw. I saw a lot of posts about people switching over, then dumping as soon as they mined.

        1. Marshall Stokes says:

          That’s some great information! However, just because a lot of coins weren’t mined on GAW’s pool doesn’t mean they weren’t mined by GAW’s SHA-256 mining equipment.

          That said, you may be totally correct that GAW didn’t bother mining their own coin (even though apparently they did mine 50k or so?), especially considering they pocketed 5.5m of the pre-mined coins. I suppose it isn’t a whole lot different from bitcoin, a gigantic percentage of which is owned by the earliest adopters. We all kind of just ignore the fact that there’s enough XPY and BTC out there to absolutely destroy the market value in a matter of minutes. I suppose the same could be said for many stocks and other assets, too. Just the way these things work.

          Bottom line: no one has more to gain (or lose) than GAW/Josh Garza should Paycoin fail to hold its market value, so it’s totally understandable that Garza is doing everything he can to prop the market price up. If he were totally transparent with his plans and ceased misleading his followers then I wouldn’t be here writing opinion pieces like this to warn potential or current investors of the implications of his Honor System announcement. I think it’s telling and very shady that he makes no mention of timing and leaves out critical details while highlighting just enough information to make the whole thing sound like it’s selfless and benevolent. Like, how will the payouts be structured? Will each person who sends XPY to the escrow wallet be paid a % out of the total each month, or will it be a first-in-first-out sort of thing? When exactly will the $100k purchases be made? How will people be paid (which currency? what method?)? Is there a time limit on the whole program or can it go on for 4+ years? Who will act is the trusted third-party to oversee the escrow wallet?

          It is irresponsible and misleading to publish such an announcement without mention of any specifics or critical details, and I believe this is done intentionally by Garza to manipulate the public and individual buyers/holders of Paycoin.

      2. no one says:

        I think you read everything in pretty good details about his “honour” programme to buy back at 20$.

        BUT you made your calculations with stated “minimum of 100k $” but the programme doesn’t state the MAXIMUM monthly payments. What if there is a need and the maximum is much higher. Say may be 600k or 1 million. Then the whole situation changes dramatically.

        I read it somewhere earlier that gaw has the capacity to spend plenty more if there’s a need as they are hoarding at least more than 100K of btc with them.

        1. Marshall Stokes says:

          That’s valid, but the promise is that $100k per month will be spent on the program. We can speculate all day, but ultimately we’re talking about a man who has been caught in countless lies and has every reason to not only deceive and mislead Paycoin investors but also to keep those coins locked up for as long as possible.

          If Garza intended to spend more than $100k per month, then the terms of the proposed program would be different. What motivation to speed up the buyback program does Garza have?

  2. Greed says:

    The article is biased. He got an roi where few other companies can give him. Talk about biting the hands that feed you. Please prove that 100k is ALL that will be paid per period. See? Here is a prime example of paranoia and entitlement. Josh is rectifying a mistake that was made, yet you are trying to kill it before it arrives. Stupidity.

    1. Marshall Stokes says:

      No kidding it’s biased. It’s an opinion piece! Also you misread, I did not say that only $100k would ever be paid out. I merely referenced what Garza posted – $100k per month would be spent buying XPY from the “Honor Program” at $20 each.

      I would also like to state that I’m not trying to kill anything. I am publicly calling Garza out on his lack of transparency. It’s great that he wants to run this program, but he needs to be up-front about the timing involved. I don’t think most people will realize that it could be months or years before they are paid $20 per coin if they send XPY to the “Honor Program”.

      1. Avi says:

        “some of the 500,000 million Paycoin”

        You mean 500,000.

        1. Marshall Stokes says:

          Yes, thanks for the correction. Updated post to fix that typo.

        2. Marshall Stokes says:

          Also updated that number in the post. It was closer to 300k, not 500k.

  3. Marshall Stokes says:

    This post was edited to correct many numbers that were totally wrong. Here’s where I was misled:

    http://www.coinssource.com/gaw-miners-releases-paycoin-a-banking-and-crypto-hybrid/ makes it sound like 18m total coins were created, but in fact it was closer to 12m. I have been told that 500k were mined during the PoW phase, but I cannot find an accurate citation for that. Whatever number were available for mining during the brief PoW phase were most certainly mined primarily by GAW, but we’ll never find stats to confirm or refute that hypothesis.

    Additionally, my math was just wrong and was based on incorrect assumptions and numbers. However, the point remains: Garza doesn’t tell the whole story, and I disagree with his PR practices in general. He has been caught in lies too many times to count and he lacks transparency in general. It is my belief that the main reason Garza wants to lock up XPY in this “Honor Program” to get them off the public markets, making it easier for him to manipulate the price up to the $20 originally promised, which ultimately will help Paycoin (and of course Paybase/Paysave) succeed as a business. This is the same purpose behind Hashstakers – to create scarcity.

    I realize that those who continue to hold XPY outside Hashstakers and the Honor Program will benefit from any increase in market value, and that’s great, but I think the real goal from Garza’s perspective is to increase his own net worth, since presumably he is the owner of a large portion (if not all, or more) of the 6.5m XPY pre-mine. Mr. Garza, I invite you to join the conversation and give us some numbers on this, with citations/proof of course.

    To reiterate, I believe Garza’s mission is to make himself more wealthy, but he’s spinning everything as though his mission is entirely benevolent in nature and that he really wants to make the world a better place. It’s perfectly fine for an individual to pursue a business model that makes him or her a lot of money, but I don’t think it’s OK to claim he or she is doing it for the benefit of others when that truly isn’t the case. With the Honor Program, my primary beef is that Josh knows it could lock up a bunch of liquid XPY for years, but he makes no mention of this in the announcement of the program. Again, lacking transparency. That it may take 4 or more years to get paid the $20 per coin is a very important detail for XPY holders to know before signing up for this program.

  4. Marshall Stokes says:

    It looks like a lot of people are asking similar questions, and not getting much response to the tough ones, like the timing behind the “Honor Program”: https://hashtalk.org/topic/28799/paybase-honors-20-paycoin/313

  5. Ryan says:

    a large portion of the 6.5 million coins that we’re pre mine were also paid out as part of the hash point Program from with in zencloud

    1. Marshall Stokes says:

      Actually that was part of the other (roughly) half of the premine. Gaw/Garza pocketed somewhere between 5 and 7 million XPY and used the remainder of the 12m coin premine to pay hash point miners. Check the links referenced in the main post and the other comments to confirm those numbers.

      I don’t think anyone is under the impression that Garza doesn’t own the majority of XPY, nor have I seen any statement from him claiming that isn’t the case. Obviously he has the most to gain by removing individual investors’ coins from the open market and manipulating the price as high as possible. Like I said previously, it’s fine for a person to pursue a profitable business, but it’s not ok to mislead customers and investors to achieve that goal.

  6. hashling says:

    Marshall Stokes asserts the $20/PayCoin conditional guarantee program reduces the supply, increasing scarcity and value of the main coins, so that with fewer coins the market will be easier to manipulate.

    I agree that when GAWMiners buys PayCoin, supply is reduced. But is that necessarily bad? Let me propose a scenario in which this could be a smart business move that’s good for the PayCoin ecosystem and even good for cryptocurrency in general.

    PayCoin faces several problems.

    PayCoin was ostensibly designed as a coin consumers could use to make purchases from merchants, pay bills, and quickly deliver money internationally. So far, they have only delivered on the speed. Transactions are super-fast. But PayBase hasn’t delivered yet on the planned features for transactions with merchants.

    Price volatility: merchants won’t accept a coin that has the price volatility of PayCoin or BitCoin. Unless and until the coin has a relatively stable value, it won’t have a lot of power in the fiat world.

    The “Honor Program,” as the company calls it, in combination with the promised functionality (if and when it’s delivered) could solve the problems of utility and stability. PayCoin holders could spend the coin on merchandise. It is currently slow and cumbersome to make purchases with Bitcoin or altcoins, so PayCoin could be a first. Purchasing power would give PayCoin immediate value.

    But where does a $20 valuation come from? And where does value stability come from? I’m really not sure if PayCoin (or any coin that achieves their stated targets) would be worth $20 just because they are a functional bridge between fiat and crypto. That $20 value seems to come from the company’s projections. But a $20 buyback program does project a degree of confidence into the field. Suppose the value of PayCoin climbs to $25 in March. Would you want to be the one who locked in the $20 rate? Imagine, instead, if those hundreds of people who decided to bet on the sure thing (the $20 buyback): if they could sell and $25 in March, they would! And the value of the coin would quickly drop because the supply pressure would drive it down.

    It’s a confident bet on the success of PayCoin. It’s like writing a put option contract in the derivatives market: GAWMiners is saying, we bet that by April PayCoin will be worth at least $20, maybe more. And it is a literal investment by GAWMiners in PayCoin. They absorb some of the excess supply. They assign a projected value to the coin. And they are contractually bound to fulfill their end of the agreement. Suppose that in March when the market values the coin at $25, and GAW decides that’s a nice stable price for PayCoin. Maybe they think it’s a good price for the investors, a good price for the merchants, and good price for their own company. If the price starts to go much above or below $25 they can adjust supply and demand to steady the price. Not only do they have plenty of PayCoin in their own coffers, but they know that every time they sell a PayCoin for $25, they are making a $5 profit off the ones held in escrow.

    I guess you could call that “market manipulation” and say it’s a strategy designed to line their own pockets. If successful, the approach might even take some of the fun out of speculating on the boringly stable value of PayCoin. But, hey, $25 might just be a step on the way to $30.

    Cryptocurrency has sometimes been celebrated over “fiat” currencies in which some centralized authority manipulates the value of the US Dollar the Euro. PayCoin might be some new hybrid cryptofiat currency. If so, the questions might be:

    Has the company built in the right incentives to continue to invest in a PayCoin/PayBase ecosystem so that coinholders benefit?

    Do we trust the companies and investors enough to sustain the value they propose to create? (What keeps them from dumping it and walking away?)

    Is there sufficient distribution of the infrastructure of the coin to protect PayCoin from becoming Visa or MasterCard, charging PayCoin users and merchants excessive fees?

    To answer some of these questions, you’d need to study the infrastructure of the technology that underlies the PayCoin system: the Prime Controllers, the Orion nodes, and the mechanisms for distribution and rewards through proof of stake. I haven’t figured out all the answers yet, myself. But let’s at least start asking the right questions.

  7. wondering says:

    Or should it be 91 years. 5.5 million Paycoins times 20 dollars gives 110 million dollars. At 0.1 million dollars per month paid by GAW that is 1,100 months or 91 years. If GAW pays more than 0.1 million dollars per month the time is naturally less.

    1. Marshall Stokes says:

      You are correct! I had actually ORIGINALLY done the math correctly, just based on an incorrect number of XPY in existence. When I recalculated my numbers, I made an actual arithmetic error, resulting in a much smaller number of years to be stated.

      Thank you for pointing that out! It makes the point of this article even more alarming!

  8. Tony Bravo says:

    Dude, obviously you are attacking Gaw business, I have been following his operations, he has a great concept about the future of alt coins, detractors are scare because they know their days are count. New technology is coming, there is a lot of resistence of those that are at the top of the pyramid the typical whales eating all little fishes like me. It is time for change, and the time is here. Just to make it clear, I don’t hold any alt coin at all, they are too risky but as an investor I keep an eye open on new technology and the possibility to use that technology to integrate my business.
    I see in Gaw a great future, time will tell.

    1. TimTayshun says:

      Doh! Whale!

  9. Allen1980s says:

    Hello,

    I have done this math twice, using a straight line method and a staked method. On the first analysis, you are correct in that it would take a very long time to retire the liability. However, on the staked method, it will always come out to between 9 and 10 months. The part people are not thinking of is, what happens when the surrendered coins are staked on Prime Controllers? The daily returns are not being delivered to the customers who are registering for the program. These proceeds are being used to pay off the $20 liability. Moreover, there is another element involved in this program, again that people are not taking into assessment: the ability for Paybase’s bit to manipulate market pricing. In this phase, there is not a lot of manipulation necessary. Attached is my spreadsheet. baby blue is for 3 month staking, and yellow is the 6 month staking. To be honest, I am not sure that GAW/Paybase have even thought of this on their own… 🙂

    1. Marshall Stokes says:

      Sounds great, but none of that is mentioned in the buyback program announcement (unless it has recently changed?). There are plenty of ways Garza could speed things up and run the program differently than described int he announcement, but he didn’t mention any of those. Why should we expect something more than what has been promised in the announcement?

      1. Allen1980s says:

        It is the only method by which they can accomplish it effectively. Staking the coins produces a daily yield which can then be sent to the exchanges as people buy coins, or even further, they can restake the daily yields to compound. This produces a BTC revenue flow. No matter how many coins are turned into the program, the end result is the almost same, or 9 to 9.64 months. There is no other math that can yield what I have already outlined. Do the math.

        1. Marshall Stokes says:

          I understand what you’re getting at, but obviously you are making two major assumptions which I believe render your argument invalid:

          1 – You assume Garza will run the program as you have theorized. It seems to me like he is intentionally trying to tie up XPY in this program in order to get them off the public markets, and therefore he has great incentive to NOT speed up the completion of the buyback program

          2 – You must be assuming some average market value of XPY, since presumably the XPY earned by staking would need to be liquidated (ultimately to USD) in order to pay off program participants. What USD value for XPY are you using in your calculations?

          Perhaps you can actually walk us through your math, using actual numbers, so we can see what assumed values you have decided to use?

          Also I would love to hear you explain why you believe Garza would want to speed this program up. I don’t understand why he would do that, as it would not benefit him in any way and he has proven many times over that he is deceitful and self-serving.

          1. Paul says:

            “he has proven many times over that he is deceitful and self-serving.”

            This statement really bothers me. It makes me believe you were not with Josh or Gaw miners for that long… Since that is an incorrect statement. He has always come through to payback the customer in whatever way he could. Mistakes happen, he is not running away like many would have already if they were in his shoes. He is still there working on the project. I see you repeating the same words, which just shows me that you have real hate towards this company and/or you got burned somehow by your own mistakes and now are trying to point fingers. Your numbers maybe correct, however if we do not have all the official correct numbers and actual time frame, your theory still becomes only speculation based on numbers that change completely when the minimum is raised. You are correct if Josh only sticks to 100k minimum monthly. However I have no doubt he will surprise everyone and increase payment which will grow trust and value to the coin and company. You have your opinion. I have mine, and he has always stuck with his word, and I trust him and his company more then any other crypto company. This company did more then anyone other ALT coin out there. Look at that for a change rather then coming to conclusions that its a scam or Josh is only out for himself, because I saw it personally that clients always came first. If it were to be a scam, this would already have been over. But it is not. Sorry to tell you but Paycoin is here to stay with a great value over time as more features are introduced. Watch it grow as it was only seeded less then a month ago.

          2. Allen1980s says:

            Hi Marshall,

            On my original post, I uploaded a picture of the spreadsheet for that moment in time.

            The entire program requires that GAW manipulate the market values. It also hinges on the value of BTC at any given moment in time. To be honest, I am not so sure they have the level of intelligence at GAW to properly implement the “staked” version of the program. We are already fairly certain that they are running low on cash, so using real GAW cash would not be an option, even at $100,000 per month. This still leaves the option of staking the coins. The CAF does not exist either.

            On the other question, there is much to be had from a quicker payout period, as far as PR value. In his own mind, this would be used as a tool to publicly legitimize the business model, making it appear less nefarious.

            I will update my spreadsheet with today’s market values and upload it again.

  10. Mark Masterson says:

    This is one of the best write-ups about the whole Paybase/Paycoin fiasco yet!
    Please keep up the research and clear it all up for us.

    1. Marshall Stokes says:

      Thank you, Mark 🙂 I’m collecting details and following the entire story closely. I plan to publish a comprehensive write-up once we find out what happens with this buyback program. The whole thing is definitely going to make 2015 an interesting year for digital currencies, though I fear it may lead to regulation in the US which could stifle innovation and put our nation at a competitive disadvantage when it comes to the inevitable global change the technology will bring over the next decade or so.

  11. Robb says:

    Hi,
    Thanks for all that’s posted here..
    I knew Josh personally, met him several times in connection with a number of friends who either worked for him at GAW or were private contractors at his home. I considered him a friend and brother despite how he sometimes, reportedly, treated the people who worked for him. Now, I’m stung by what he clearly appears to have done to the public trust. Wondering if he’s been caught yet led me to this thread. It’s somewhat healing, humorous and even cathartic to read comments above, people going out of their way, defending Josh.

    Thanks for the info and especially the laughs.

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