Two state-backed Cryptocurrencies faced downfall despite getting Government agencies’ support.
At the time of writing this article, the Price of Miami and New York City coins are down by 90% and 80%, from the all time high price of these coins respectively. While the current price of these two coins can be seen in the pictures attached below, where the New York coin not standing in a better position.
According to reports, these highly supported faced downfall because the crypto market and its volatility may result in a huge downfall for any high profile coin. The majority of the reports took the reference of the recent downfall in the price of Terra’s UST stable coin.
However, these two coins were made to bring a use case corresponding to their state but still, not many options have been provided yet for the users to spend these assets.
Eric Adam, mayor of New York City, openly supported NYC coin in Q4 2021 to bring blockchain & Web3 tech innovations to Newyork.
“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.”
An urban technology researcher at Cornell Tech, Michael Bloomberg, passed his statements regarding such coins and said to Quartz that the state-backed digital assets could even become useless to the population if no additional utility will be added to capture investor appetite:
“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.”
Since late Q4 2021, the crypto industry & also other money markets faced a significant downfall in the prices. In the last 10 days of time frame, the situation was very bad because of the Terra Ecosystem collapse incident and such things are raising new questions in the minds of new crypto investors.