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Pump and dump. Coins with a higher market cap feed the buying of coins with a lower market cap. As the founder of a coin you have all the initial coins since yo
by notliketherest 9y ago
Pump and dump. Coins with a higher market cap feed the buying of coins with a lower market cap. As the founder of a coin you have all the initial coins since you were the only one mining (if your coin is premined, even better). Once your coin starts gaining traction, you pump up the price and then dump. Cha-ching.
- freehunter 9y agoThis is the answer. Everyone wanted to make "... but on the Internet" because there was money in it. Then everyone wanted to make "Facebook, but for..." because they could get money. Now everyone wants to make cryptocurrency or do blockchain stuff because people are still willing to spend money on it. It's the hot new thing, there's a frontrunner but not an established winner, and investors are still willing to give people money for it.