In this episode I wanna talk about one of the most important things you should look for, before investing in a cryptocurrency. There are three words associated with initial distribution in the crypto space which are usually frowned upon for good reasons. ICOs, IEOs, and Premines. Now these three words all mean the same thing in a way. They just refer to different ways that developers of a coin can use to issue a number of coins out of thin air at the beginning and then sell them to others to raise funds for further development. ICO stands for Initial Coin Offering, IEO stands for Initial Exchange Offering and Premine stands for pre-mine or in other words, mining beforehand. The reason premining is frowned upon is mainly because it's been a common practice behind most scams. What happens is that scammers launch a blockchain with lots of coins premined, and then they claim that they want to sell these coins to investors in order to raise money to then deliver a bunch of promises in the future. They issue and sell the coins to foolish investors only to then leave and not deliver any of their promises.
Another clever way of premining coins is with projects that technically don't premine, but they continue to pay part of the inflation to certain addresses that are coded into the blockchain. Even though this is technically not premining, but when you think about it enough, you realize that it is very similar to premining. It's just done in a really clever way and tends to hide its true face. In fact, the project that SwiftCash split from in 2018, was heavily involved in this practice. This brings us to the initial distribution of SwiftCash and how unique it has been at its inception. The most important thing with initial distribution in my opinion is that coins are not printed out of thin air and distributed between a few elites. SwiftCash has had no ICO, IEO, or premine whatsoever. The initial distribution was airdrops on the SmartCash blockchain in late 2018. But since SmartCash was heavily involved in a clever way of premining coins, certain filters were put in place to target the elites who had accumulated close to 80% of the supply in an extremely unfair fashion.
The filters worked so great that the initial distribution ended up issuing and airdropping only about 300 million coins out of almost 2 billion coins in the SmartCash blockchain. You can have a quick look at a post I made about this almost 2 years ago HERE. Interestingly enough, shortly after that, about 16 million coins which belonged to a rogue miner were immediately exposed and removed from the SwiftCash blockchain. And yet again, shortly after that, the community decided to fork again and remove the zombie coins that were left unclaimed by giving owners up to an extra six months to either redeem their coins or say goodbye to them forever. This resulted in removal of another 220 million coins from the blockchain. Bottom line is that the initial distribution of SwiftCash has been even better than Bitcoin for the following reasons.
Bitcoin launched when nobody had a clue how it actually works except Satoshi Nakamato and he was making 50 Bitcoins every 10 minutes with literally no competition involved in the mining process whatsoever for quite some time. SwiftCash launched at a time when a great number people knew about not only cryptocurrencies in general, but also about SmartCash and how it had failed them. Some of them had bought SmartCash at $1 per coin and they were seeing the price continue to go down to even below 3 cents. Their only hope to even get their initial capital back was now through SwiftCash. But many also didn't believe in SwiftCash and treated the airdrop like free money and sold their SwiftCash and went back to SmartCash only to watch it decline even more. Regardless of what people did, the launch of SwiftCash was fair, it had no ICO, IEO or premine and neither did it have the clever way of premining coins without technically premining. SwiftCash removed all hard-coded address(es) in the blockchain that belonged to the elites and went back to on-chain governance similar to Dash, for mining through the Proof-of-Labor concept.
That's it for my third episode. In my forth episode, I'll be talking about another important aspect that sets SwiftCash aside from other Proof-of-Stake coins that are out there. This aspect is known as mining through the Proof-of-Labor concept. Stay tuned!
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