Premine introduces the need to trust the developer(s) and causes centralization of funds which are two terrible things in crypto.
that's it in a nutshell ... adding to the crypto dictionary
Topic: Why premined altcoins are considered scam-coin? (Read 4511 times)
that's it in a nutshell ... adding to the crypto dictionary
You already noticed it: Considering a coin a scam only because it's premined is childish and serious investors should not do this.
Much more important is that the project is transparent about the use of the premine. Serious projects make clear the proportion of the premine and how it's used before an ICO or IPO is carried out. And they provide details about the development team, roadmap etc.
The proportion for the developers should not be too large. I consider it better if there is a model where the developers get continuous rewards for their works than a simple premine. There have been many cases where the "developers" sold their premined coins without writing a single line of code.
Premines that are distributed in the form of "airdrop" or "giveaway" are a good way to gain a larger user base. But if the proportion of the "airdropped coins" is too large, then there is a chance that many of the holders will sell as fast they can - the "Auroracoin effect".
Much more important is that the project is transparent about the use of the premine. Serious projects make clear the proportion of the premine and how it's used before an ICO or IPO is carried out. And they provide details about the development team, roadmap etc.
The proportion for the developers should not be too large. I consider it better if there is a model where the developers get continuous rewards for their works than a simple premine. There have been many cases where the "developers" sold their premined coins without writing a single line of code.
Premines that are distributed in the form of "airdrop" or "giveaway" are a good way to gain a larger user base. But if the proportion of the "airdropped coins" is too large, then there is a chance that many of the holders will sell as fast they can - the "Auroracoin effect".
These area all true there are pros and cons on premined,in my opinion premine was created for profit but it is the easiest way to generate followers of your coin because it's been used as give away and to stabilize the development of the project,but it all goes up who are the devs who are offering premined some of them are newbies..
Premine, and ICO are the best coins ever.
I want to avoid flame wars between this or that altcoin so invite everyone partecipate to this discussion to avoid any direct attack to a specific coin using only examples and argumentations.
I have noticed that the community pay much attention to the fact a coin is premined but i haven't clearly understand the reason why this is necessarly evil.
I have understood that if few people controls the largest part of the whole monetary base is very bad for all the rest of people, but I'm not sure this is directly related to premined.
-Suppose to have an altcoin A that is premined but there are tons of way to get much coins for free without mining.
-Suppose to have another altcoin B that isn't premined but is insanely hard to get some coins using mining for a common user that cannot use a cluster with huge hashrate that only few people or companies can have.
Assuming that both altcoins are limited to a fixed max amount of mineable coins.
What is the scientific reason that should lead me to consider the altcoin A scam and the altcoin B fair?
I have noticed that the community pay much attention to the fact a coin is premined but i haven't clearly understand the reason why this is necessarly evil.
I have understood that if few people controls the largest part of the whole monetary base is very bad for all the rest of people, but I'm not sure this is directly related to premined.
-Suppose to have an altcoin A that is premined but there are tons of way to get much coins for free without mining.
-Suppose to have another altcoin B that isn't premined but is insanely hard to get some coins using mining for a common user that cannot use a cluster with huge hashrate that only few people or companies can have.
Assuming that both altcoins are limited to a fixed max amount of mineable coins.
What is the scientific reason that should lead me to consider the altcoin A scam and the altcoin B fair?
As a newbie on altcoin with no mining rig to speak of premine with give away caters to newbie like,people are more attracted to coins that are easy to get and the distribution is wide..
I want to avoid flame wars between this or that altcoin so invite everyone partecipate to this discussion to avoid any direct attack to a specific coin using only examples and argumentations.
I have noticed that the community pay much attention to the fact a coin is premined but i haven't clearly understand the reason why this is necessarly evil.
I have understood that if few people controls the largest part of the whole monetary base is very bad for all the rest of people, but I'm not sure this is directly related to premined.
-Suppose to have an altcoin A that is premined but there are tons of way to get much coins for free without mining.
-Suppose to have another altcoin B that isn't premined but is insanely hard to get some coins using mining for a common user that cannot use a cluster with huge hashrate that only few people or companies can have.
Assuming that both altcoins are limited to a fixed max amount of mineable coins.
What is the scientific reason that should lead me to consider the altcoin A scam and the altcoin B fair?
I have noticed that the community pay much attention to the fact a coin is premined but i haven't clearly understand the reason why this is necessarly evil.
I have understood that if few people controls the largest part of the whole monetary base is very bad for all the rest of people, but I'm not sure this is directly related to premined.
-Suppose to have an altcoin A that is premined but there are tons of way to get much coins for free without mining.
-Suppose to have another altcoin B that isn't premined but is insanely hard to get some coins using mining for a common user that cannot use a cluster with huge hashrate that only few people or companies can have.
Assuming that both altcoins are limited to a fixed max amount of mineable coins.
What is the scientific reason that should lead me to consider the altcoin A scam and the altcoin B fair?
As a newbie on altcoin with no mining rig to speak of premine with give away caters to newbie like,people are more attracted to coins that are easy to get and the distribution is wide..
There are innumerable ways to launch a cryptocurrency. The most vital ingredient is transparency.
When a currency is launched there are initial costs and fees associated with maintaining the network. So each evaluation must be made separately. There is no black and white.
Transparency, resilience, community, and kindness are the most vital ingredients in a sustainable currency.
~~
When a currency is launched there are initial costs and fees associated with maintaining the network. So each evaluation must be made separately. There is no black and white.
Transparency, resilience, community, and kindness are the most vital ingredients in a sustainable currency.
~~
Couldn't agree more with that. Transparency is key. People can then make their own choice after that.
Premined like coins who have a 2% premine for example or
premined coins like ICO's who are 100% premined ?
Can we all do basic math ?
Which number is bigger and there for worse (scammier) ?
I love how you all try so damn hard to play dumb about that LOL
premined coins like ICO's who are 100% premined ?
Can we all do basic math ?
Which number is bigger and there for worse (scammier) ?
I love how you all try so damn hard to play dumb about that LOL
Decentralization homeboy. If you are true in your belief of a purely P2P exchange without an centralized institution, then a premine is against the premise as it sets up an entity that mined the tokens before anyone else could. They became the institution crypto was supposed to circumvent.
Absolutely, No. Because the premine that I'm saying implies a fixed free fair distribution. There is no centrality because in this scenario the premined coins aren't a property of developer or another entity, but a public reserve that has the only purpose to be the most decentralized possible with a proportional distribution among people, and the currency starts to work only after most of premined monetary supply is distributed. It's only a fair start mechanism to make the currency REALLY distributed, there is no centrality at all in the hypothetical premined cryptocurrency of my sample.
I think you're assertion of "absolutely" is invalid. However, I understand where your head is at.
Premine is OK as long as it serve its purpose, white paper and transparency is also a plus when it comes to this, they are considered as a scam if the premine is way too big just for the start up the program.
Decentralization homeboy. If you are true in your belief of a purely P2P exchange without an centralized institution, then a premine is against the premise as it sets up an entity that mined the tokens before anyone else could. They became the institution crypto was supposed to circumvent.
Absolutely, No. Because the premine that I'm saying implies a fixed free fair distribution. There is no centrality because in this scenario the premined coins aren't a property of developer or another entity, but a public reserve that has the only purpose to be the most decentralized possible with a proportional distribution among people, and the currency starts to work only after most of premined monetary supply is distributed. It's only a fair start mechanism to make the currency REALLY distributed, there is no centrality at all in the hypothetical premined cryptocurrency of my sample.
There are innumerable ways to launch a cryptocurrency. The most vital ingredient is transparency.
When a currency is launched there are initial costs and fees associated with maintaining the network. So each evaluation must be made separately. There is no black and white.
Transparency, resilience, community, and kindness are the most vital ingredients in a sustainable currency.
~~
When a currency is launched there are initial costs and fees associated with maintaining the network. So each evaluation must be made separately. There is no black and white.
Transparency, resilience, community, and kindness are the most vital ingredients in a sustainable currency.
~~
Decentralization homeboy. If you are true in your belief of a purely P2P exchange without an centralized institution, then a premine is against the premise as it sets up an entity that mined the tokens before anyone else could. They became the institution crypto was supposed to circumvent.
You didn't answer the question where a coin that was issued for totally free derives its value from and why anyone would ever pay money for it or why it would be fair to take money for something you received for free. Please answer that question.
Also you seem to be unable to understand that even if the coin is distributed for free it can be a scam.
Also there is no such thing as a fair central distribution.
Maybe you would want to send privatekeys in the mail to 6 billion citizens of the world for free, maybe then i'd be interested but i doubt you can raise the funds to do that.
To me you make the impression of someone who's testing the waters for their next premine-coin. Save yourself the headache. It's not gonna fly.
Also you seem to be unable to understand that even if the coin is distributed for free it can be a scam.
Also there is no such thing as a fair central distribution.
Maybe you would want to send privatekeys in the mail to 6 billion citizens of the world for free, maybe then i'd be interested but i doubt you can raise the funds to do that.
To me you make the impression of someone who's testing the waters for their next premine-coin. Save yourself the headache. It's not gonna fly.
Yes. I got the same exact impression.
Test the water for next premine coin?? This is more ridiculous than reptilian-jew conspiracy theory.
I'm talking about the REAL concept of FAIRNESS for both premined and not-premined coins and still haven't received a valid reason why buy coin from mining mobbing of big whales should be considered "fair", because this is what happens when who has more hash power can get most of monetary supply only for speculative purpose.
This isn't a valid reason because means accepting cryptocurrency world as a simple facade for standard money ....and nothing more than this.
No revolutionary system to fight big corporations, lobbies and unfair wealthy and power allocation. Basically only a big joke to waste energy in mining and gain from scam bubbles.
Cryptocurrency potential is far more greater than this.
You didn't answer the question where a coin that was issued for totally free derives its value from and why anyone would ever pay money for it or why it would be fair to take money for something you received for free. Please answer that question.
Also you seem to be unable to understand that even if the coin is distributed for free it can be a scam.
Also there is no such thing as a fair central distribution.
Maybe you would want to send privatekeys in the mail to 6 billion citizens of the world for free, maybe then i'd be interested but i doubt you can raise the funds to do that.
To me you make the impression of someone who's testing the waters for their next premine-coin. Save yourself the headache. It's not gonna fly.
Also you seem to be unable to understand that even if the coin is distributed for free it can be a scam.
Also there is no such thing as a fair central distribution.
Maybe you would want to send privatekeys in the mail to 6 billion citizens of the world for free, maybe then i'd be interested but i doubt you can raise the funds to do that.
To me you make the impression of someone who's testing the waters for their next premine-coin. Save yourself the headache. It's not gonna fly.
Yes. I got the same exact impression.
Test the water for next premine coin?? This is more ridiculous than reptilian-jew conspiracy theory.
I'm talking about the REAL concept of FAIRNESS for both premined and not-premined coins and still haven't received a valid reason why buy coin from mining mobbing of big whales should be considered "fair", because this is what happens when who has more hash power can get most of monetary supply only for speculative purpose.
You didn't answer the question where a coin that was issued for totally free derives its value from and why anyone would ever pay money for it or why it would be fair to take money for something you received for free. Please answer that question.
Also you seem to be unable to understand that even if the coin is distributed for free it can be a scam.
Also there is no such thing as a fair central distribution.
Maybe you would want to send privatekeys in the mail to 6 billion citizens of the world for free, maybe then i'd be interested but i doubt you can raise the funds to do that.
To me you make the impression of someone who's testing the waters for their next premine-coin. Save yourself the headache. It's not gonna fly.
Also you seem to be unable to understand that even if the coin is distributed for free it can be a scam.
Also there is no such thing as a fair central distribution.
Maybe you would want to send privatekeys in the mail to 6 billion citizens of the world for free, maybe then i'd be interested but i doubt you can raise the funds to do that.
To me you make the impression of someone who's testing the waters for their next premine-coin. Save yourself the headache. It's not gonna fly.
Yes. I got the same exact impression.
Test the water for next premine coin?? This is more ridiculous than reptilian-jew conspiracy theory.
I'm talking about the REAL concept of FAIRNESS for both premined and not-premined coins and still haven't received a valid reason why buy coin from mining mobbing of big whales should be considered "fair", because this is what happens when who has more hash power can get most of monetary supply only for speculative purpose.
You didn't answer the question where a coin that was issued for totally free derives its value from and why anyone would ever pay money for it or why it would be fair to take money for something you received for free. Please answer that question.
Also you seem to be unable to understand that even if the coin is distributed for free it can be a scam.
Also there is no such thing as a fair central distribution.
Maybe you would want to send privatekeys in the mail to 6 billion citizens of the world for free, maybe then i'd be interested but i doubt you can raise the funds to do that.
To me you make the impression of someone who's testing the waters for their next premine-coin. Save yourself the headache. It's not gonna fly.
Also you seem to be unable to understand that even if the coin is distributed for free it can be a scam.
Also there is no such thing as a fair central distribution.
Maybe you would want to send privatekeys in the mail to 6 billion citizens of the world for free, maybe then i'd be interested but i doubt you can raise the funds to do that.
To me you make the impression of someone who's testing the waters for their next premine-coin. Save yourself the headache. It's not gonna fly.
Yes. I got the same exact impression.
You didn't answer the question where a coin that was issued for totally free derives its value from and why anyone would ever pay money for it or why it would be fair to take money for something you received for free. Please answer that question.
Also you seem to be unable to understand that even if the coin is distributed for free it can be a scam.
Also there is no such thing as a fair central distribution.
Maybe you would want to send privatekeys in the mail to 6 billion citizens of the world for free, maybe then i'd be interested but i doubt you can raise the funds to do that.
To me you make the impression of someone who's testing the waters for their next premine-coin. Save yourself the headache. It's not gonna fly.
Also you seem to be unable to understand that even if the coin is distributed for free it can be a scam.
Also there is no such thing as a fair central distribution.
Maybe you would want to send privatekeys in the mail to 6 billion citizens of the world for free, maybe then i'd be interested but i doubt you can raise the funds to do that.
To me you make the impression of someone who's testing the waters for their next premine-coin. Save yourself the headache. It's not gonna fly.
Trust is what gives values to a virtual currency or any currency that isn't based to a physical commodity and is based on how considered fair is the system. If people accept that the system can work and is fair. If the monetary system is democratic and accepted. Where is the scam? If someone not accept the system nobody force him to exchange services for cryptocurrencies.
Dollars are paper that worth only some cent, but people accept their value so you can use them to buy.
This would be a system way more fair if developed correctly.
You didn't answer the question where a coin that was issued for totally free derives its value from and why anyone would ever pay money for it or why it would be fair to take money for something you received for free. Please answer that question.
Also you seem to be unable to understand that even if the coin is distributed for free it can be a scam.
Also there is no such thing as a fair central distribution.
Maybe you would want to send privatekeys in the mail to 6 billion citizens of the world for free, maybe then i'd be interested but i doubt you can raise the funds to do that.
To me you make the impression of someone who's testing the waters for their next premine-coin. Save yourself the headache. It's not gonna fly.
Also you seem to be unable to understand that even if the coin is distributed for free it can be a scam.
Also there is no such thing as a fair central distribution.
Maybe you would want to send privatekeys in the mail to 6 billion citizens of the world for free, maybe then i'd be interested but i doubt you can raise the funds to do that.
To me you make the impression of someone who's testing the waters for their next premine-coin. Save yourself the headache. It's not gonna fly.
You try to negate the reality.
1) It's a FACT that few people can get access to ultra-powerful hash miners
Most of people CANNOT invest tons of money in superminer for speculation, I have a high end home PC pretty expensive and if I compare ,u hashrate to top miners of most popular pools its power i light years distant not even in the same universe.
2) The concept of miners contribute to the currency has sense when the hash power is proportional to the blockchains needs, if there is overmining speculation becames a way to grab as much coins as possible. This concept is very easy to understand. There is monstrous power used in most popular coins mining for few transactions. So say that is only a meritocratic reward is bullshit, It's a gredy game for who has most power.
3) Is for you is fair that few richest people that can affort mining cloud controls most of the money, you have to consider fair also that original developers control most of the coins. To me fairness means a proportional distribution among people... According to you isn't clear what means and what is the "merit concept".
Can you tell me why the next person should pay money for a coin that you got for free? Is that fair for the person that buys that coin from you later? Please explain.
WOW you haven't understand anything of what I have said. If someone create a fair distribution of premined coins obviously this distribution must be FREE so this fair distribution can be the kickstart to create a fair virtual monetary system for all people. This is what I'm saying.
- If developers premine all monetary base and sell to other users is UNFAIR since the developers get the control of the monetary supply
- If developers doesn't premine and the mining is based only on hash power, this is also UNFAIR, since the big companies that can use server farms to mine the coins take the control of the monetary supply.
premined altcoins are bad or even bad enough to be considered as scam coins because it gives control over the altcoin to a few people who own the premined coins so they can swing the price as they see fit and be sure that the price will always swing in their favor not the rest of us as investors.
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