Cryptsy accused in GAW Scandal

Cryptsy, a U.S.-based digital currency exchange, has reportedly received a PayCoin Prime Controller from the PayCoin Foundation. The announcement was made on the PayCoinTalk Forum.

PayCoin Prime Controllers are basically PayCoin wallets which stake coins at a rate much higher than traditional wallets. There are 49 PayCoin Primer Controllers at present, which stake coins at a 100% per annum rate.

GAW Miners owned most of the PayCoin Prime Controllers, when they created PayCoin. But subsequently, most of these were distributed to various non-profit organizations, namely The PayCoin Foundation Inc., PayCoin Core Development Corp., and XPY Trust.

Still, there exists a large amount of PayCoin Prime Controllers that are possessed by an anonymous party, and it has only recently been revealed that Cryptsy also owns one. This is contradictory, as the Prime Controller generates PayCoins, and Cryptsy offers PayCoin trading with other currencies implying that the latter can also sell PayCoin directly through its system, resulting in the rise in the price of PayCoin even further.