> Would love to hear a logical explanation of the difference between a "scam" cryptocurrency and a "legitimate" one.
Not a crypto user but interested in the space. It seems that the difference lies in intent and, if applications, fraudulent actions by the creators.
For example, IPFS and their Filecoin has created a system for distributed file hosting. This was created with the intent of making file coin a reward for hosters and this is somewhat working. Imo this is a "legitimate" cryptocurrency.
On the other hand you have, e.g., Safemoon a "scam" cryptocurrency recently featured on various news outlets. The creators behind it allegedly committed fraud by misusing shared funds. The intent of the initial founder also allegedly was to defraud "investors".
> The intent of the initial founder also allegedly was to defraud "investors".
>
> Explain how "intent" is logically derived.
If someone advertises a cryptocurrency to bring you money as an "investment" but has the intent to take your money and not produce more value with it.
A project may aim to achieve a goal but fail to do it for various reasons. There a legitimate, e.g., technical challenges, and illegitimate reasons, e.g., misuse of funds.
The same way that, e.g., a publicly traded company can legitimately go bankrupt, without defrauding/ scamming customers.
The distinction of legitimacy/ intent was meant in reference to the legal usage. One can argue about these being logical.
If the Satoshi wallet is sold off when the coin is already a million each, what does that prove about that wallet's intentions?
I just don't see the connection...if they were doing daily pontificating on social media, signing messages with genesis wallet keys, I could understand directing the hate there.
It comes down to misleading people really. The act of creating a cryptocurrency is never a scam in itself, but how people try to get other people to use/buy into it can often is (e.g. promising/guaranteeing increase in value, lying about features, possibilities, properties, adoption).
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[ 0.13 ms ] story [ 42.5 ms ] threadThis is like the difference between a religion and a cult. There is no logic, it's just a matter of social acceptance.
Not a crypto user but interested in the space. It seems that the difference lies in intent and, if applications, fraudulent actions by the creators.
For example, IPFS and their Filecoin has created a system for distributed file hosting. This was created with the intent of making file coin a reward for hosters and this is somewhat working. Imo this is a "legitimate" cryptocurrency.
On the other hand you have, e.g., Safemoon a "scam" cryptocurrency recently featured on various news outlets. The creators behind it allegedly committed fraud by misusing shared funds. The intent of the initial founder also allegedly was to defraud "investors".
Explain how "intent" is logically derived.
The "intent" of Satoshi Nakamoto may have been the same --- as was the result --- he became rich by wasting electricity.
If someone advertises a cryptocurrency to bring you money as an "investment" but has the intent to take your money and not produce more value with it.
A project may aim to achieve a goal but fail to do it for various reasons. There a legitimate, e.g., technical challenges, and illegitimate reasons, e.g., misuse of funds.
The same way that, e.g., a publicly traded company can legitimately go bankrupt, without defrauding/ scamming customers.
The distinction of legitimacy/ intent was meant in reference to the legal usage. One can argue about these being logical.
You keep missing the point. "Intent" is an assumption here, not a fact --- and one that can be applied with equal veracity to any cryptocurrency.
In other words, crypto isn't real money. And by extension, selling people "fake" money is called what?
I mostly mean "sell" as in "market".
If the Satoshi wallet is sold off when the coin is already a million each, what does that prove about that wallet's intentions?
I just don't see the connection...if they were doing daily pontificating on social media, signing messages with genesis wallet keys, I could understand directing the hate there.
As it stands, just confused.