MiamiCoin has lost the bulk of its value over the past few weeks, with the token losing as much as 95% of its value.
Launched in August 2021, the cryptocurrency was supposed to be a harbinger of crypto adoption in Miami but has struggled.
The CityCoins plan was predicated on participation from citizens who would embrace the utility value of the MiamiCoin and use it for paying at vendors around town and even completing property tax payments.
Miami Coin started positively. Mayor Francis Suarez hyped the dividends paid out to citizens, with some $5.25m paid out on February 2.
Then Suarez said the ominous words that took the coin down and kept it down for the past few weeks: “I don’t know whether this is going to work.”
The mayor expressed fears that MiamiCoin could lead to regulatory inquiry by the US Securities and Exchange Commission which has been less than friendly towards cryptocurrencies of late.
Another report by Quartz pointed out that Patrick Stanley, a supporter of CityCoins, insisted that MiamiCoin could work, and that the coin could have many practical applications, including a universal basic income.
However, none of the much hoped for projections for the token came to fruition, let alone guaranteeing universal basic income.