The recent downfall that the crypto market has seen in a matter of a very short time was full of surprises and shocks simultaneously
Amidst the dip that almost every other cryptocurrency across the whole crypto market has seen, several of them are somehow directly related to people. For instance, the project MiamiCoin ($MIA) would offer to cite the source of revenue that would be through new cryptocurrency tokens minting, which has seen its token’s value plunging by about 95% since its launch.
The token may see adoption and may see a rise in the future, supported by Francis Suarez, Mayor of Miami state, who calls himself the ‘most bitcoin-friendly mayor on the planet’. Since then, the cryptocurrency price had quickly skyrocketed to nearly $0.05 level when it started trading last year, which plunged to about $0.01 and later recovered to its $0.05 mark again. Since then, the price of Miami Coin has been consistently dropping to trading at $0.004 currently. The cryptocurrency has been traded from the top cryptocurrency, Bitcoin (BTC), to fiat currency US dollar.
Mayor Francis Suarez has supported the coin, who at one point gave the suggestion that the cryptocurrency could be employed to allow governments to be run without any need from citizens to pay the taxes. The crypto asset is a part of the CityCoin project that requires its users to mine the tokens by just acquiring them on the STX blockchains in order to bid for MiamiCoins. The bidder who wins the bid would receive 70% of the Minamicoins that have been mined, while the city gets the 30% remaining in STX tokens.
The project was initially beneficial for Miami as Suarez said that the city had added approximately $5.25 million to its cash box because of CityCoins. After several weeks, as the local newspaper quoted, Suarez said that he did not know anything about whether it would work.
Quartz has obtained several emails from CityCoins to the office of the mayor through an act of freedom of information that reveals concerns regarding Suarez’s statements that could trip the regulatory wires. This could also mean that the project and the city itself could have to give the funds back to investors in case the United States Securities and Exchange Commission found the coin to be unregistered security.
Source: https://www.thecoinrepublic.com/2022/05/18/how-miamicoins-failure-would-hurt-the-bitcoin-friendly-mayor-of-miami/