Bloomberg — A cryptocurrency exchange has stopped token trading related to the cities of New York and Miami, alleging their low liquidity.
The two cryptocurrencies had previously received the endorsement of their corresponding mayors, that of New York, Eric Adamsand the one in Miami, Francis Suarezwhat promoted these digital values in favor of their respective communities. . . . Just like it happens with other tokens proof-of-work (work proof), it is possible to mine the coins, but Miami and New York present a peculiarity: a 30% of the money used in mining would be donated to that city, says Okcoin.
The bag discontinued business operations from NYCCoin and MiamiCoin during the past week, says Okcoin in a note dated 9 this month. The holders of the coins can remove them and take them to another wallet or keep them there. The bag intends to restore negotiations of the currencies “as soon as possible”, according to the press release.
“The problem with little liquidity is that malicious actors outside the company could manipulate contributions, laundering stolen funds and perpetrating other crimes,” Okcoin said. “While none of these endangerment cases have occurred, we wanted to anticipate any possibility of inappropriate behavior. For this reason, we immediately mobilize to face these events and prevent them.”
Okcoin did not immediately respond to a request for comment on Tuesday. The Miami city office was not available for comment and a representative from the Miami city officehe mayor of New York City said that NYCCoin “has no affiliation” with the city.
CityCoins, which works on the Stacks protocol, developed the tokens. Okcoin was the only centralized platform that listed the CityCoins, according to the March statement. In January, the exchange’s security team noted low liquidity levels from NYC and MIA. When it became clear that adding liquidity would take some time, the exchange opted to suspend trading. Users can still trade the coins on the ALEX decentralized exchange, according to Okcoin’s statement.
According to the CityCoins website, the cities were not officially associated with CityCoins. Even so, already in 2021, both leaders tweeted their support for the currencies.
ICYMI my interview on MiamiCoin with @FoxBusiness✅The revolutionary concept of @mineCityCoins✅Understand how it has generated more than $5 million for the city✅How these benefits translate into a better quality of life for Miamians pic.twitter.com/ipewPwBMdw Mayor Francis Suárez (@FrancisSuarez) September 20, 2021
We are pleased to welcome you to the global home of Web3! We have the technology and innovation to help drive our city forward. Eric Adams (@ericadamsfornyc) November 8, 2021
In 2021, the price of bitcoin (XBT) skyrocketed in the era of easy money and a crypto frenzy that he did not imagine a ceiling for the prices of digital assets. A lot has changed since then, especially the price. Bitcoin has fallen from its all-time high of more than US$65,000 in November 2021 to quote now around US$28.000.
For MiamiCoin and NYCCoin, the losses have been even more pronounced. These days, both are traded basically for nothing, according to Okcoin.com. But even at its peak, token values barely exceeded several cents, according to Okcoin.com.
Suarez adopted a particularly optimistic stance towards the potential benefits of MiamiCoin. He said in February 2022 that Miami had received millions of dollars of a CityCoins outlay, while previously noting that the token could help Miami become a tax-free city.
I am very excited to announce that @CityofMiami has received its first disbursement of @mineCityCoins totaling $5.25 million. This is a historic moment for our city to collaborate on an innovative project that creates resources for our city through innovation, not waste. taxes. Mayor Francis Suárez (@FrancisSuarez) February 2, 2022
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