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.
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.
So again, I’m definitely not knowledgeable on the subject, but doesn’t it take some start up capital to even launch a coin? I guess that initial cash isn’t really ‘buying’ a coin, but if starting a coin costs $20 and you gave yourself 20 coins, didn’t you essentially buy the first 20 coins for $1 a piece?
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.
it’s a public ledger and so it would still be known which wallets received the initial coins; but also, you can’t know how many is reasonable without knowing what the price per coin will end up at
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.
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.
So again, I’m definitely not knowledgeable on the subject, but doesn’t it take some start up capital to even launch a coin? I guess that initial cash isn’t really ‘buying’ a coin, but if starting a coin costs $20 and you gave yourself 20 coins, didn’t you essentially buy the first 20 coins for $1 a piece?
Small network fee to deploy the contract. For a simple one, probably like $1. And this guy minted himself billions of tokens.
So sure, technically you’ll need some “startup capital” but saying they bought the tokens suggests it was on the open market which isn’t the case.
Thank you. I marked you as “Meme Coin Guy” in my Lemmy client.
That sounds pretty negative. What about “Explainer of Meme Coins”?
I think that’s the joke. “First off, I really am not into meme coins or crypto or any of that bollocks.”-" Got it, thanks meme coin guy"
Oh, whooshed myself
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.
it’s a public ledger and so it would still be known which wallets received the initial coins; but also, you can’t know how many is reasonable without knowing what the price per coin will end up at