All hashpoints were turned into paycoins. The Genesis block is the only place they could have come from. This was well disclosed.

Our security system uses warm, hot and cold wallets. Our policy is to keep only a small amount of XPY in our hot wallets. When coins are sent out they are sent from a shared pool.

This pool will contain customer coins and investors coins from the genesis block. It also contains deposited coins and coins purchased off the exchanges.

Additionally, all Paycoins sold through credit card go through the following process:
 ◦Receive confirmation from credit merchant that card has been charged
◦XPY is credit to customer from XPY pool
◦Funds settle at the end of the day
◦3-5 Days later, funds become available
◦FIAT is then transferred to BTC broker
◦Once funds settle with broker, BTC is sent to our wallet
◦The BTC received is then used to purchase XPY from an exchange to replenish the XPY pool

The credit process will be changing with the next paybase update.