Because many new coins are a scam and the devs often can't develop much at all. They simply bring out a shitcoin, build hype, disappear and dump, rinse and repeat with new social media names. If there's no premine it's less likely, though sometimes they lie about having no premine (Xios did).
Be wary of any dev who's a newbie on here and who doesn't demonstrate skill early on in the coins life.
This is a good opportunity for me to shill you on Phore, a new coin with a team that actually know how to fucking code and have demonstrated it, somewhat of a rarity these days.
Topic: Why is no Premine so important to the value of altcoins? (Read 246 times)
Well this is of course very important
How can you start a trustless decentralised currency if most of the minting or a huge % is in the hands of one person with no ledger.
They can control and collude to control the entire market.
Please do a lot more homework before investing in anything.
If there is a full transparent ledger this is something different but again it is hard to validate the spending is not to themselves or pals.
The initial distribution is the most important part for ensuring no scam.
How can you start a trustless decentralised currency if most of the minting or a huge % is in the hands of one person with no ledger.
They can control and collude to control the entire market.
Please do a lot more homework before investing in anything.
If there is a full transparent ledger this is something different but again it is hard to validate the spending is not to themselves or pals.
The initial distribution is the most important part for ensuring no scam.
Cryptohunter nailed it, Bitcoin is trustless, decentralized and premined coins are not. They're taking steps backwards instead of forward.
Premine is important for them because they hold their coin and they do not want to sell. But even if they are scam they are selling when their coin is in exchange market.
I think it depends on what the plan for the premine is. So without context I think it's unfair to say that a premine hurts the value of a coin
I agree with that comment. In some cases a premine does make sense, whereas it can hurt a coin (or the trust in it) in other cases. For example, if a dev premines, lets say 20% of the total supply for himself before he announces the blockchain, it can be a huge trustissue and the possibility that this dev just dumping constantly on the market.
Well this is of course very important
How can you start a trustless decentralised currency if most of the minting or a huge % is in the hands of one person with no ledger.
They can control and collude to control the entire market.
Please do a lot more homework before investing in anything.
If there is a full transparent ledger this is something different but again it is hard to validate the spending is not to themselves or pals.
The initial distribution is the most important part for ensuring no scam.
How can you start a trustless decentralised currency if most of the minting or a huge % is in the hands of one person with no ledger.
They can control and collude to control the entire market.
Please do a lot more homework before investing in anything.
If there is a full transparent ledger this is something different but again it is hard to validate the spending is not to themselves or pals.
The initial distribution is the most important part for ensuring no scam.
It seems like it shouldn't matter if the altcoin is premined or not.
It depends on what the premine is for. Sometimes developers use a premine for bounties and other events to promote the coin. However some may just premine to keep a lot of coins to themselves. This could be bad for several reasons. For example, what if the developer premined a lot of the coin and dropped all their coins at once? That would really hurt the price of the coin.
I think it depends on what the plan for the premine is. So without context I think it's unfair to say that a premine hurts the value of a coin
It seems like it shouldn't matter if the altcoin is premined or not.
are there successful examples of an altcoin that's been premined?
are there successful examples of an altcoin that's been premined?
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