Post
Topic
Board Altcoin Discussion
Re: Why most premined coins (>90% of all altcoins) will eventually fail
by
bots1
on 22/07/2023, 09:27:27 UTC
This is an interesting topic to discuss.
Indeed most of the coins that are nominated have the possibility of failing in the end. Premines give a competitive advantage initially, but once funds are depleted, that advantage can fade and the coin faces a significant drop in value. Factors such as lost competitive advantage, ineffective community takeovers, and limited space in the market can cause the failure of most large premium coins. A few exceptions, such as Ethereum, XRP, and BNB, have survived due to a diverse business model or strong ecosystem. However, in general, the hope that community expropriation would address the problem was often unfulfilled. No-premium coins have the psychological advantage of an easier community takeover. Evaluation of the success of a coin should consider factors such as business model, ecosystem, competitive advantage and community psychology.