Bitcoin Forum

Other => Beginners & Help => Topic started by: mezmerizer9 on October 13, 2014, 03:15:17 PM



Title: Just a question
Post by: mezmerizer9 on October 13, 2014, 03:15:17 PM
I've never understood what premining actually does and how it affects the coin. I know it's bad but what it really does? :D


Title: Re: Just a question
Post by: Pony789 on October 13, 2014, 03:36:13 PM
I've never understood what premining actually does and how it affects the coin. I know it's bad but what it really does? :D

In simple words, "premining" means the developers mined a certain % of coins before launching the coin to the public. Those premined coins may be used for giveaway, bounty, or the developers just want to get rich when the coin is listed in an exchange.


Title: Re: Just a question
Post by: cookiemonsterwhat on October 13, 2014, 03:49:48 PM
Its the early adopters you gotta worry about.


Title: Re: Just a question
Post by: Pony789 on October 13, 2014, 04:06:38 PM
Its the early adopters you gotta worry about.

Early adopters getting a significant % of coins isn't a problem IMHO as long as the launch has been published in advance.

I mean, quite a number of bitcoin early adopters have (or had) a good amount of bitcoin in their hands, but is bitcoin premined? Nope. ;D


Title: Re: Just a question
Post by: BillyBobZorton on October 13, 2014, 04:44:09 PM
Some coins like BITS make a good use for the giveaway specially if its documented, it can be used for charity giveaways and coders, not a bad thing.


Title: Re: Just a question
Post by: yatsey87 on October 13, 2014, 04:59:40 PM
I've never understood what premining actually does and how it affects the coin. I know it's bad but what it really does? :D

It's like printing your own money, which goes against the spirit of crypto. It essentially makes it like fiat imo.


Title: Re: Just a question
Post by: Spamela Anderson on October 13, 2014, 05:00:24 PM
It's bad because devs do it just so they can get rich quick. It gives them an unfair advantage.


Title: Re: Just a question
Post by: notlist3d on October 13, 2014, 05:29:24 PM
Some coins like BITS make a good use for the giveaway specially if its documented, it can be used for charity giveaways and coders, not a bad thing.

Sadly its hard to trust a lot of coins you have no idea if it goes to devlopment or if they will get ride of it if they make it on a exchange.

Best thing to do is launch it at a certain time, and make it open for everyone.  Look at how litecoin launched that is a good example of a fair launch.