The Rise and Fall of MiamiCoin and NewYorkCityCoin
Despite much fanfare and the enthusiastic support of mayors in both Miami and New York City, the hopeful trajectories of MiamiCoin (MIA) and NewYorkCityCoin (NYC) have come crashing back down to earth. With MIA having plummeted 92% from its all-time high (ATH) of $0.055 to a measly $0.004, and NYC languishing 80% lower than its March peak of $0.006, it seems like these digital coins are less ‘city pride’ and more ‘something to cringe at’.
Trading Volume: A Browning Hope
Once basking in the glory of robust trading volumes, the coins now struggle to spark even a flicker of investor interest. With MiamiCoin trading at a pitiful total volume of $70,190 and NewYorkCityCoin trailing behind at $45,663 in the past 24 hours, comparing this downturn to their heyday (MIA reaching $1.6 million and NYC hitting $260,000 in trading volumes when they were riding high) feels like the difference between winning the lottery and stumbling upon loose change in the couch cushions.
CityCoins: The Bright Idea or the Next Great Disappointment?
Created as part of the CityCoins initiative, these coins promised to unlock new fundraising avenues for the metropolitan powerhouses. While the mayors of Miami and NYC embraced the technology, the crux seems to lie in utility—or lack thereof. These coins were designed to allocate 30% of mined rewards to the partnered cities’ reserve wallets, while miners pocket the remaining 70%. But can these investments entice the everyday user when the expected yield from “stacking” the coins is lackluster at best, with a mere 9% annual yield resembling a diet soda in a world of craft beers?
Government Handouts: A Double-Edged Sword
In recent months, Miami’s administration dished out a whopping $5.25 million from its MIA wallet for rental assistance, and NYC’s Mayor Eric Adams heralded the advent of the NYC coin as a gateway to driving innovation. Yet, how sustainable is it to constantly rely on public reserves for support when the investors, the ones who should be basking in the coins’ glory, seem to be left holding empty bags? As Michael Bloomberg pointedly observed, “People will stop mining the coin if they can’t make money off of it, and the only way they make money off of it is convincing greater fools to participate.” Talk about a burning ring of fire!
A Cautionary Tale for the Future
As we continue our digital journey through this crypto wilderness, the cautionary tale of MiamiCoin and NewYorkCityCoin unfolds. If cities can’t offer additional utility or incentives to recommit consumers and investors, these bright ideas might just become another obscure anecdote in the crypto history books. Until then, the only thing these coins seem to attract is a begrudging nod of understanding from their fading ranks of loyal supporters.
