Crypto Silliness: Paragon Up 800% Today Despite Massive Crypto-Carnage

Mike Shedlock
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Posted: Jan 17, 2018 9:26 AM
Crypto Silliness: Paragon Up 800% Today Despite Massive Crypto-Carnage

The major cryptocurrencies took a huge hit today, but there were some spectacular success stories as well.

Paragon

It's pretty clear from the symbol the crypto is related to marijuana in some fashion. Paragon is a rental company that claims to "Bring blockchain technology to the world of cannabis."

"Our Paragon Spaces sit at the heart of our business model. The concept for a Paragon Space was derived from the persistent lack of working spaces for entrepreneurs and employees working in and for the cannabis industry.

As a result, we at Paragon want to address that demand with a real high-tech solution, our very own Paragon Space. These buildings will be accessible in 2018 for all to rent a desk, office or a conference area - there will also be a cafe for all your food and drinks needs.

So why rent at Paragon Space? We will be below the market average and offer a highly competitive pricing structure for those who wish to work at our Space - but most importantly, we will only accept PRG tokens in exchange for desk space, drinks and everything else."

Mathematical Silliness

The company rents office space and only accepts PRG tokens for rent.

Other than last-minute volatility, it makes no mathematical difference whether the company takes dollars and converts them to PRG or the renter buys PRG and hands over the PRG.

This is the same nonsense we have seen before regarding oil priced in Euros or Yuan.

It is irrelevant what a commodity is priced in, as long as the currency is liquid enough. Pricing something in Yap Island Stones will not work.

Is PRG liquid enough? Long enough? I don't know, but the risks to the renter are the same unless the renter decides to speculate on future price movements.

Speculation Encouragement

What Paragon hopes to do is get renters to speculate on PRG tokens, buying more than they need to pay the rent.

If enough people do that, the price will rise, for a while. But eventually the price will crash, as there is no reason to hold PRG for anything other than speculative purposes.

Paragon is a fool's game for everyone but the insiders who got in early.