To be clear, I am in no way into meme coins or even crypto at all, but it’s my understanding that when you make a new type of crypto, you put some money into it for an arbitrary amount of those coins. They’re dev coins because you’re the one making it, and you normally get a lot of them because when you start, the coin is next to worthless. As more people buy into the coin however, the price of the coin goes up. This turns into a problem because if the coin gets any kind of traction, there’s now one guy who has tons of coins that they bought for next to nothing, but are now worth real money. This is the part of the rug pull where the creator sells all their coins and tanks the value of the coin, making a massive paycheck and leaving anyone else misguided enough to have bought any holding the bag. ‘Burning’ the coin just essentially deletes it, so it’s out of circulation so everyone else who owns them can feel a bit safer, because now there’s not 1 guy who can just decide to get out and fuck everyone else over.
TLDR; Dev coins are just the initial amount of coins that the dev bought to start their own meme coin.
Given that, wouldn’t the next play to be to have a set of accounts each with a “reasonable” number of coins each? Then as confidence builds in the coin, these smaller positions can liquidate over time.
Dev coins are just the initial amount of coins that the dev bought to start their own meme coin.
A minor but important clarification is that the creator does not buy anything. It’s just the initial allotment they assigned themselves upon deployment of the contract.
To be clear, I am in no way into meme coins or even crypto at all, but it’s my understanding that when you make a new type of crypto, you put some money into it for an arbitrary amount of those coins. They’re dev coins because you’re the one making it, and you normally get a lot of them because when you start, the coin is next to worthless. As more people buy into the coin however, the price of the coin goes up. This turns into a problem because if the coin gets any kind of traction, there’s now one guy who has tons of coins that they bought for next to nothing, but are now worth real money. This is the part of the rug pull where the creator sells all their coins and tanks the value of the coin, making a massive paycheck and leaving anyone else misguided enough to have bought any holding the bag. ‘Burning’ the coin just essentially deletes it, so it’s out of circulation so everyone else who owns them can feel a bit safer, because now there’s not 1 guy who can just decide to get out and fuck everyone else over.
TLDR; Dev coins are just the initial amount of coins that the dev bought to start their own meme coin.
Given that, wouldn’t the next play to be to have a set of accounts each with a “reasonable” number of coins each? Then as confidence builds in the coin, these smaller positions can liquidate over time.
A minor but important clarification is that the creator does not buy anything. It’s just the initial allotment they assigned themselves upon deployment of the contract.
Thank you. I marked you as “Meme Coin Guy” in my Lemmy client.