Avalon Life, a cryptocurrency venture, announced its third operational shift in just over a year, effective July 15. The company ceased paying affiliates in Bitcoin, redirecting its mining resources and affiliate compensation towards an unlaunched altcoin called Pura Vida Coin. This pivot follows previous iterations involving the now-defunct AVLX cryptocurrency and a Dash mining pool operation.
The company informed affiliates of its decision in a recent newsletter, citing a projected surge in the "entire network-hash rate of major coins." Avalon Life claimed conversations with hardware suppliers indicated "extremely high volumes of pre-orders" for mining equipment would begin delivery in August. This influx, they argued, would lead to a "massive increase in the hash rate" and a "significant decrease in returns" for many established cryptocurrencies.
In response, Avalon Life decided to concentrate its "existing and upcoming mining resources" on Pura Vida Coin, aiming to "strengthen this network from the start." The altcoin's website describes it as a "Hybrid decentralized POW/POS Cryptocurrency" intended for merchant acceptance, particularly in Costa Rica and other Latin American markets. The site suggests it targets those "sick and tired about the inflationary Fiat Money."
Developer links associated with Pura Vida Coin prominently feature the name "Avalon Life," suggesting direct involvement. However, the exact nature of Avalon Life's role in the altcoin's development remains undisclosed. Despite promises made last year that merchants would be established after listing on exchanges in the third quarter of 2016, Pura Vida Coin is not yet publicly traded. Only three miners were recorded for the coin at the time of publication.
The launch date for Pura Vida Coin itself is uncertain. Avalon Life stated it depends on market conditions surrounding the Bitcoin Segwit activation in early August. The company outlined two possible launch windows, either late August or late October, but emphasized the launch would proceed only if "acceptable from the market and within the advantage of the Avalon Community." All associated milestones, including master nodes and wallets, are contingent on this final launch decision.
Avalon Life has stated its primary goal for Pura Vida Coin is "mass adoption," incorporating "many innovative and new features that are not yet available on the market in this form." The company views a "suitable market environment and the right timing" as critical for this objective. Such a rapid shift to an unproven, in-house altcoin raises questions for investors, particularly given the historical volatility of similar ventures in the cryptocurrency multi-level marketing space. Regulators globally, including the U.S. Securities and Exchange Commission, have issued warnings regarding unregistered securities offerings in crypto, especially those promising high returns or relying on new investor recruitment.
While focusing on Pura Vida Coin, Avalon Life also indicated a long-term openness to mining other altcoins. The company has stated it began building a "profitable product range" outside its core mining operations. Affiliates, however, face the immediate prospect of receiving compensation in a cryptocurrency with no current market value or liquidity.
The ultimate success of Pura Vida Coin and Avalon Life's latest pivot hinges on market acceptance, a definitive launch date, and its ability to secure exchange listings and merchant adoption, none of which are currently established.