Pros & Cons of Premined Cryptocurrencies
pro’s:
- dev gets paid
- some bounties and coin distribution can occur
con’s:
- depending on the size of the premine, developer could get an unreasonably large amount of coins for what is essentially a copy and paste job.
- negative preconceived opinions about the coin because it is premined.
- dev could be a scammer and dump all the coins, rapidly deflating the price(ie, a pump and dump)
- those who claim the bounties may run with the money and pull the services at a moments notice once the bounty is paid.
- coin may be subject to 51% attacks, difficulty stranding attacks, and other undocumented forking attacks from anti-premine “activists”, who may be the vocal minority but often have the majority of hash on any given coin.
- the coin will be under constant attack from trolls
