So far I think its only people or organizations that are trying to create a new crypto currency to just be out there and maybe one day compete with bitcoin.
people make altcoins to make more money from pump and dump and this is true about 99% of them.
that leftover 1% are some projects that the developers try to make something good but they usually don't succeed!
But what if a government decides to create a country's own and legit altcoin? How would that affect the whole scenario? Will it be an instant success, especially if the country is big enough in population or has decent enough international trading going on.
it would not be a success.
it may be used but since there is no difference between a government created altcoin and fiat, people won't be so willing to switch to it. whereas they use bitcoin because of what it offers: the decentralization mostly.