Despite being publicly endorsed by the respective mayors of each cities, MiamiCoin (MIA) and NewYorkCityCoin (NYC) have plunged 90% and 80% since their all-time highs.
According to knowledge from CoinGecko, the worth of MIA has dropped 92% since its ATH of $0.055 on Sept. 20 to take a seat at $0.004 on the time of writing. While NYC’s worth has fallen by 80% since its March 3 excessive of $0.006 to commerce at $0.0014.
With traders getting burned throughout many different crypto property of late, demand for MIA and NYC cash has nearly fully dried up.
Trading quantity for the duo over the previous 24 hours has totaled a mere $70,190 and $45,663 respectively. In comparability, when MIA and NYC have been at ATH ranges, they generated $1.6 million and $260,000 value of 24 volumes apiece.
Miami mayor Frances Suarez has spoken in regards to the potential use-cases of MIA on a number of events, and most just lately introduced in February that the native authorities had disbursed $5.25 million from its reserve pockets to help a rental help program.
New York City mayor Eric Adams additionally welcomed NYC with open arms in November after he said that “we’re glad to welcome you to the global home of Web3! We’re counting on tech and innovation to help drive our city forward.”
The property have been developed by the CityCash mission, a Stacks layer-on blockchain-based protocol aiming to offer crypto fundraising avenues for native governments akin to Miami and New York City, its two and solely companions to date.
A key incentive — regardless of potential regulatory grey areas — is that CityCash’ sensible contracts mechanically allocate 30% of all mining rewards to a custodied reserve pockets for the partnered metropolis, whereas miners obtain the remaining 70%.
As of January this yr, the worth of Miami and New York City’s reserve wallets had hit round $24.7 million and $30.8 million respectively in line with CityCash Community Lead Andre Serrano, suggesting there had been comparatively sturdy group demand to mine the asset on the time.
Related: ‘Philly is ready’ for CityCash, says metropolis council
However, whereas the governments have benefited from the partnerships, on the consumer/investor facet of issues it seems the share of mining rewards, and a supposed 9% annual BTC yield from “stacking” (basically staking) the property on the Stacks (STX) blockchain, shouldn’t be attractive sufficient to drive sturdy demand.
Michael Bloomberg, an city know-how researcher at Cornell Tech, just lately prompt to Quartz that the cash may even turn into ineffective to the cities if additional utility isn’t added seize investor urge for food:
“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.”