The MiamiCoin cryptocurrency is not owned or managed by the city of Miami, which hosted the Bitcoin 2022 event we recently visited. However, Mayor Francis Suarez has expressed support for the coin, saying it raises “the possibility of being able to run a government without the citizens having to pay taxes.” According to Quartz, the value of MiamiCoin has plunged by as much as 95 percent since its introduction on August 3rd.
Miners must buy tokens on the Stacks (STX) blockchain in order to bid for MiamiCoin under the CityCoin scheme. The successful bidder receives 70% of their investment in MiamiCoin, with the remaining 30% in STX tokens going to the city.
Things appeared to be going well at first, according to Suarez, who stated that the city got a $5.25 million settlement from the project on February 2nd. The mayor was cited in the Miami Herald saying “I don’t know whether it’s going to work” 17 days later, as the currency’s value sank to approximately four-tenths of a cent, and it currently stands at $0.0044, down more than 88 percent, according to OkCoin, the only exchange that accepts trade for the coin.
Separately, Quartz obtained an email from CityCoins to the mayor’s office, citing concerns that his statements could trip “regulatory wires” — if the SEC investigates and determines that the coin is an unregistered security rather than currency, both CitcyCoin and the city could be forced to refund investors.
According to Quartz, Patrick Stanley, a CityCoins enthusiast, has been a frequent contact for municipal authorities and claims that the money might be utilized for local commercial transactions or universal basic income. Despite the fact that none of those applications have come to fruition, Stanley just tweeted a photo of people who appear to be studying how to construct crypto-related ventures.
Quartz also noted an open city idea that would use the token as an incentive for those who phone to report abandoned ridesharing scooters.
Of course, Miami isn’t the only city promoting CityCoin. To top it off, then-new New York City mayor Eric Adams announced he’d take his first three paychecks in Bitcoin to top Suarez’s prank, and welcomed CityCoins to the city in November. In the same week, Bitcoin reached a high of $69,000, and it is now selling for around $30,000. The NYCCoin project, which began on January 24th, 2022, has lost 98.58 percent of its value and is now worth $0.0014.