If we can not publicly mine and whole lot of coins are generated during that time, then yes it is premine. Yes, my understanding of premine is wide, but anything that is not available to the public and generates coins during that time looks shady.

There are only a few coins which aim for something good. Most of it is just crap and this is one of the main reasons you will see negativity around here. Scamming is based on trust so even if one does not get scammed here, if he/she is too trusting, sooner or later it will happen somewhere. As you can see, miners no longer wish to pre-order hardware due to the many scams. People got more cautious as the SHOULD BE. Blind trust will get their money and/or resources gone for ever.

XPY does not seem to have anything special. The only reason ppl mined and believed is the name GAW and a promise of big returns. If things star getting delayed or a statement/promise does not come through, ppl start wondering if the project will be successful.