All the coins were created at birth. There is no inflation.

As for sinister people holding millions, the process for weeding out initial stakeholders was extremely intensive, perhaps too intensive in the view of a few people, so the initial distribution is nothing like as bad as NXT was.

The distribution was spread between a couple of thousand or so people and there were opportunities to cash in before the coin even launched. It's been around for a good while so quite a few will have dumped and spread them.

No idea about the pump, but my guess it was ETH/DAO money looking for a new toy so it may not last. Having said that it's on a lot more radars now so perhaps they'll become enamoured of it.