Post
Topic
Board Altcoin Discussion
Re: Why most premined coins (>90% of all altcoins) will eventually fail
by
shoreno
on 22/07/2023, 09:51:25 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.

they say that premined coins are a scam so maybe the ones that can gain an advantage or a benefit is the one that creates them and not those who invest on it. a project can set aside a fund for theiir development but once it runs out of use it inapropriately, thats right that the value of their coin can also go down. nothing is easy but as long as a project will do what they can, it is possible that they can take over or get the sympathy of the many. before we invesst, evaluating the coin properly is improtant. we should check the stuffs that you mentioned there above ot possibly find a good coin.