MiamiCoin and NewYorkCoin have both declined significantly from their all-time highs in the current bear market. MiamiCoin, which is better known, has dropped about 92% from its peak value in September. Despite being embraced by both city’s mayors, MiamiCoin (MIA) and NewYorkCityCoin (NYC) have fallen 92% and 80%, respectively, since their all-time highs.
MiamiCoin and NewYorkCoin investor demand dries up
According to data from CoinGecko, MiamiCoin’s price has plummeted 92 percent since its peak of $0.055 on September 20 and is now worth $0.004. NYC’s value has dropped by 80% since its March 3 high of $0.006 to trade at $0.0014 at the time of writing. CityCoins tokens have taken a beating as a result of the market downturn. Their decline raises issues for their usage as assets that may generate value for cities.
Investors are getting burned across a number of other crypto-assets lately, suggesting that investor interest in MiamiCoin and NYC coins has nearly vanished. The CityCoins venture’s assets have dropped drastically as the market’s losses leave no token untouched.
Over the past 24 hours, the pair’s trading volume has been $70,190 and $45,663. In comparison, when MiamiCoin and NYC were at ATH levels, they generated $1.6 million and $260,000 worth of 24 volumes each day.
How widely they are adopted will determine whether they can recover and rise. MiamiCoin has made some progress in this area, having already given residents $21 million worth of locally mined crypto.
MiamiCoin and NewYorkCoin are only two of the CityCoins’ tokens. AustinCoin is another significant one, with plans to expand to other cities worldwide. However, until the market stabilizes, the Texas government may delay those plans.
The CityCoins project created the assets used by Miami and New York government officials. This stack layer-on blockchain-based protocol aims to provide crypto fundraising possibilities for municipalities like Miami and New York City, with just two partners to date.
Despite any legal grey areas, the primary benefit is that CityCoins’ smart contracts automatically distribute 30% of all mining rewards to the partnered city’s custody-held reserve wallet. In comparison, miners receive the remaining 70%.
According to CityCoins community lead Andre Serrano, the value of Miami and New York City’s reserve wallets had reached $24.7 million and $30.8 million by January this year, indicating there was strong community demand for mining the asset at the time.
Miami mayor Frances Suarez has discussed the possible use cases for MiamiCoin on several occasions, most recently describing how the city government had disbursed $5.25 million from its reserve wallet to support a rental assistance program in February.
Could the Securities and Exchange Commission (SEC) come after Miami?
Many cities are considering utilizing blockchain to improve efficiencies while lowering costs and simplifying processes. The decline in price raises questions about how useful digital currencies may be for administrative use. Until the market stabilizes and eliminates its tendency to fluctuate, the coins may continue to be what they are – an experiment.
In November 2021, New York City Mayor Eric Adams extended a warm welcome to the city, stating that the metropolis was delighted to welcome worldwide crypto investors to the world capital of Web3! Furthermore, the city counted on technology and innovation to help drive its economy forward.
On February 2, the city of Miami converted its cryptocurrency MiamiCoin for the first time, depositing $5.25 million into city coffers. Crypto investors greeted the release of MiamiCoin with great enthusiasm by the crypto community, and Mayor Francis Suarez called it a turning point in city government. He also said that Miami residents could use the asset to replace municipal taxes and other services one day.
Miami isn’t the only metropolis with grandiose crypto ambitions. In November 2021, CityCoins announced a similar cryptocurrency for New York, and it will soon release a coin for Austin, Texas. Other cities have gotten involved in crypto projects: Fort Worth, Texas, plans to install bitcoin mining machines at city hall soon.
However, there is a regulatory catch. If the SEC determines that MiamiCoin is, in fact, a unregistered security, SEC could require CityCoins and the City of Miami to return investor funds. If the SEC finds that anyone who introduced MiamiCoin made deceptive public statements about it, organizers might get implicated in securities fraud.
The SEC has already sued firms it considers to be unregistered securities over cryptocurrencies. It’s not difficult to argue that people in crypto-friendly cities like Miami also need safeguards, just like investors.
Meanwhile, Miami has established itself as a crypto hub in the United States and is working hard to attract entrepreneurs. One startup enables consumers to pledge cryptocurrency as collateral for mortgages. Mayor Suarez also wants government workers paid in bitcoin. The city also plays host to several Bitcoin and crypto conferences each year. In April, it hosted the Bitcoin 2022 Conference.