I always thought they would end up using the mining income to keep Paycoin afloat and create an illusion of $100 million fiat reserve, that's if they really even have miners backing up the hashlets sold. But you are right they can just keep the profit while letting shitcoin die. Only reason to keep it going would be if they think they can sell more ponzi stakers.
So basically Ponzi from the start, rake in the money and wipe out any obligations by cloning peercoin and giving away worthless points and worthless coin that costs zero.
I thought josh was an incompetent used car salesman trying to push shit on people to make himself rich. He's not as dumb as I thought, but he's a bigger scumbag than I thought.
Warning - the following is my theory only: I think they never had any serious profits, either due to mismanagement or some other issues. Especially since mid-October they have been reluctant to spend ANY real money on anything. E.g. they claimed $50 million marketing budget, $100 million floor, "teams" and "companies" working on the coin and paybase etc, while the actual results show the opposite. Cheap coin clone, some ads on obscure "news" sites, barely functional Paybase and of course no floor now. They seemed to be trying to pump the coin on hype alone, and perhaps they put a few hundred BTCs on Paybase for 5 minutes at launch. I doubt they blew 100k or 500k or whatever on Cryptsy, those spikes could have been someone else's arbitrage bots fooled into buying.
There is obviously no way to prove this, but there are just so many red flags pointing in that direction that it would be one hell of a coincidence. Like the refusal to sell any of their own products for XPY.
