MiamiCoin (MIA)

2022: Cryptocurrency failure

On May 16, 2022, it became known that cryptocurrency MiamiCoin has lost 95% of its value since its launch in 2021. The Maimi project, apparently, has become a failure, despite ambitious plans.

When Miami first launched its cryptocurrency, the city treasury was replenished with $5.25 million. Miami Mayor Francis Suarez called it a "historical moment" and predicted that one day cryptocurrency could replace municipal taxes as the main source of government funding.

Miami cryptocurrency failed

The creator of MiamiCoin, an organization called CityCoins, showed no less enthusiasm, presenting the coin as a financial experiment that will allow citizens to get a "community-driven income stream," while stimulating new digital urban services.

However, since September 2021, MiamiCoin has lost almost its entire value, falling 95% from its September peak to $0.0032 as of May 13. This rapid fall has ruined investors, muted the dreams of Miami's city leaders and may have caused alarm among regulators who are now investigating cryptocurrency transactions.

There is no model for how US cities can introduce cryptocurrencies into their economies and government activities. But CityCoins Community Founder Patrick Stanley argues that MiamiCoin will be used for local business transactions, facilitate software development, and even one day become a source of universal basic income for residents. Stacks also runs an accelerator program for CityCoins, and recently adopted 11 new companies to create gaming, educational and financial applications for their cities.

One type of people believes that everything in cryptocurrencies is fraud, "Stanley said in an interview. Another type of people believes that ninety-nine percent of cryptocurrencies is fraud, but one percent is insanely important. I belong to this last group. Bitcoin, stakes, Ethereum, CityCoins. All this falls into that one percent of projects that are not only not fraud, but also incredibly important.

MiamiCoin remains a purely speculative asset. Neither the city itself nor private companies accept cryptocurrency in exchange for goods or services. CityCoins announced one potential city project (proposed, but not yet implemented) with the participation of a city contractor who will use cryptocurrency to reward residents for reporting incorrectly parked scooters to the city telephone service.

Instead, MiamiCoin mainly serves as a volatile asset that brings money to city authorities depending on its value among those investors who mine and trade in the cryptocurrency market.

MiamiCoin is unlikely to become widespread, if only because it is so difficult for an average citizen to obtain. Most large cryptocurrencies are traded on popular exchanges, such as Coinbase or Binance, but MiamiCoin is listed only on one exchange - OkCoin, 26th in terms of trading volume, according to CoinMarketCap data. In addition to the lack of liquidity, this means that even experienced cryptocurrency holders will most likely have to create a new account in order to gain access to the MiamiCoin, and without a large number of traders or liquidity of large exchanges, it will be difficult for investors to cash out.^[1]

2021: Cryptocurrency Launch Plan

On August 4, 2021, it became known that the American city of Miami will release its own cryptocurrency MiamiCoin (MIA), with the help of which the authorities will finance infrastructure projects and events in the city.

MiamiCoin represents the first cryptocurrency within the framework of CityCoin - this is a project with which those who wish can invest in the city by buying its coins. Everyone will be able to mine MiamiCoin, and part of the mined coins will be sent to the city budget.

Investors in CityCoin are also benefiting because they will be awarded a reward in Bitcoin or STX.

{[Subject Blockchain and}} cryptocurrency

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