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The New York City token (NYCCoin) still cannot effectively challenge the leading positions of the Miami token because NYCCoin holders cannot buy and sell their tokens due to licensure restrictions.
New York City Token
According to Business Insider, the promotion of a New York City token aims at strengthening the position of New York City as one of the major crypto hubs in the country. However, a number of problems still exist in this field, thus creating additional difficulties for crypto investors in terms of buying and selling their New York City tokens in the market.
The major current problem refers to the absence of a BitLicense in most crypto exchanges that offer the NYCCoin. As a result, traders appear to be unable to buy and sell these tokens, although the mining option still exists.
Therefore, the holders of these tokens experience highly limited opportunities for participating in various transactions and generating additional returns as compared with BTC, ETH, and other established cryptocurrencies.
One of the negative implications in this regard is the reduced demand for the NYCCoin and such crypto exchanges from users because they have better options when relying on alternative crypto tokens or exchanges in other crypto hubs.
Competition between New York City and Miami
As most city leaders recognize the growing potential of crypto exchanges and innovative tokens as a source of additional revenues and improved image and reputation for their cities, they tend to take additional measures to become the major crypto hubs.
At the moment, there are two major crypto hubs that try to become national and global leaders: Miami and New York City. However, at the present moment, Miami is much more effective in providing a well-balanced infrastructure that includes trading options being available for the maximum number of users and the resolution of all major licensing and regulatory requirements.
The higher activity of the Miami token’s miners also confirms the higher traders’ and investors’ interest in this project. Finally, the prices of the Miami tokens exceed those of the NYCCoin: $0.0034 and $0.0019 respectively.
The current amount of the Miami coins in circulation equals 4 billion that is about 25% higher than 3 billion of NYCCoins. Therefore, the Miami token project is more than 2 times more effective than that of the NYCCoin project in terms of its market capitalization.
Therefore, the New York City authorities and crypto analysts involved in the development and implementation of the NYCCoin initiative should implement urgent reforms to enable traders and investors to freely purchase and sell its tokens by addressing the current licensure obstacles.
In this manner, the demand for its tokens may increase, enabling it to challenge Miami’s current leadership.
Implications for the Global Crypto Market
The growing involvement of the largest cities’ administration in the development and promotion of their tokens has a number of serious implications for the broader crypto market.
The first one is the closer integration of the traditional local and regional government operations with the crypto industry and innovative solutions. In particular, city authorities try to utilize additional opportunities for monetizing their innovations and legal conditions created for crypto enthusiasts.
Moreover, they recognize that it may serve as an additional driver of investments in their city. The second one is the high likelihood of such a strategy being adopted by smaller cities and towns throughout the country. Although they may be unable to effectively compete with Miami and New York City, they can still achieve considerable progress in promoting their urban areas and crypto projects.
As a result, users and traders will receive additional opportunities for investing their funds in tokens associated with major city and urban projects. The third one is the high likelihood of the emergence of not only proof-of-work but also proof-of-stake and other innovative mechanisms that may be applied to city tokens.
In particular, authorities may become more sensitive to those crypto projects that minimize the negative environmental impact. The future dynamics of prices and capitalization of the major projects will also indicate the direction of future changes and improvements in this field.
In any case, the current trend towards the large-scale utilization of city tokens is expected to continue in the following months.