Why Cryptocurrency Investors & Miners Hate Pre-Mining

Why Cryptocurrency Investors & Miners Hate Pre-Mining
Many new cryptocurrencies are announced with a specified amount of coins pre-mined. This is unpopular for miners with miners and investors.

I talk about this topic in this video.

References:

Why premined altcoins are considered scam-coin?
– https://bitcointalk.org/index.php?topic=1506161.0

CampusCoin – https://www.campuscoinproject.org

Be sure to leave a comment below and give your opinion on this topic.

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Kevin

OBVIOUS DISCLAIMER IS OBVIOUS: I am not a financial advisor. My opinions are my own and it is the responsibility of everyone to do their research of every coin they invest in.

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Why Cryptocurrency Investors & Miners Hate Pre-Mining

6 thoughts on “Why Cryptocurrency Investors & Miners Hate Pre-Mining”

  1. I agree with almost everything you said except one thing. I know you are trying to be fair and give some of these ico's the benefit of the doubt by saying that a %20 pre-mine "usually" means its a scam. A %20 pre-mine is a scam in my opinion. It is excessive and inappropriate for a company to assume that much equity in a coin before it launches. Every company needs working capital but a project can be adequately funded with 1 or 2 percent to start. An argument can be made for an additional amount per year after that but it needs to be consistent with their needs as a company. If the company is successful, those numbers should be able to support a team. It would actually be incentive for the team to do the best job possible. A %20 pre-mine is basically a statement saying they are going to make money off of the initial investors whether the coin is successful or not. Then, if the coin tanks, they can just move on and start a new project having made a profit. It is disrespectful to the investors who support them at the beginning stages by locking in their own profit before ever achieving success. I would never let a company use my money as a safety net like that.

  2. I guess giving money to an ICO would be the same as a premine then wouldn't it? Money before a product? An ICO with a premine…watch out.

    I know your not asking for regulation.

    Don't invest/mine in any coin with anonymous developers…premined or not…kind of a weak argument against premining isn't it?

  3. Campuscoin never had an ICO so thus they needed the funding and ensure allocation of future needs for their ambassadors and coin giveaway to sign ups for students and retailers to get them on board.

  4. Hey Kev, a lot of similarities between new currency start ups and Kickstarter projects. People get shafted on there all the time for huge sums..and yet theres no shortage of people looking to invest in an anonymous project with a flashy website…hoping to make a few quid..

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