Beware of the Country Coins

Recently AuroraCoin made a big splash. It has a 50% premine which is supposed to be distributed to people of Iceland with an “airdrop”. Apart from the 50%, not even 1% is mined so far and traders went busy pumping the price up. Right behind MazaCoin is pumping. It is supposed to be the sovereign currency of the Traditional Lakota Nation. At best they are in a huge bubble now. Worst would be a scam.

They both have a strong emotional story. A crypto-currency adopted by a real nation would be huge news even for Bitcoin. The Bitcoin community wants to believe this is real. This is what makes the story so dangerous.

BitcoinSachs nails it:

Without infrastructure, products or services how does this coin serve their people? The short answer: It doesn’t aside from dumping it for a short-term profit which will be taken over by speculators before dying.

For a day trader this is great scenario at the moment, where you can buy some coin and sell it with 100% profit an hour later. However, I strongly recommend not hold them long-term. Do not get greedy!

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One comment

  1. Arthur Dehls

    “The Bitcoin community wants to believe this is real. This is what makes the story so dangerous.” Nailed it! That’s what really bothers me, because it is a scam. Here’s just two things… First off, nobody in Iceland has heard of it. Well, not the two Icelanders I know. That leads us to the second question… Why such a rush? The only reason to do this project on their ridiculously short timeline is to ensure that people only have time to do one thing…. panic buying, feeding frenzy, the usual.

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