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Pre-Mined Initial Fork Offerings (IFOs) the New and Trendy Way to Fund Crypto Projects

Pre-Mined Initial Fork Offerings (IFOs) the New and Trendy Way to Fund Crypto Projects

First Bitcoin Cash, then Bitcoin Gold, now another Bitcoin hard fork, the Super Bitcoin (SBTC), is on the way. It plans to be forked at block 498888 and the original Bitcoin holders will be given one SBTC for one BTC for ”free.”

Also read: Bitcoin Cash Network Completes a Successful Hard Fork

SBTC Fork at Height 498888

According to its official website, SBTC will scale its block size to 8 megabytes featuring smart contracts and a lightning network.

Li Xiaolai, a Chinese bitcoin tycoon, is the man behind the project. Li is a controversial person in the Chinese community who initiated such ICO projects as EOS, ICO.info and PressOne this year. The PressOne project received 550 million dollars within three days without releasing a white paper, and was described as a typical “scam” by Chinese mainstream media.

When China ruled out ICOs this September, Li published a letter apologizing that he had overvalued his ability and regretted if he had somehow misled crypto newbies. After that, Li was safely “forgotten” by the community, until now.

Super Bitcoin, as it is premined, has once again put him in the spotlight. The project has 21,210,000 SBTC in total, out of which 210,000 are pre-mined.

Premined Coins Will Be Used for Early Development

Like Bitcoin Gold, the SBTC team explains that premined coins will be used for early development, but also for ”ecological construction”.

Initial Fork Offerings (IFOs) The New and Trendy Way to Fund Crypto Projects

“i support competition among forked coins, but i don’t support coins with 210,000 pre-mine that are unethical and unfair,” comments btc.top owner jiang zhuoer.

Jiang adds that it’s pointless to have another big block coin and he doesn’t see SBTC as a threat to Bitcoin Cash.

“I wonder if Li [will write] a white paper this time,” ridicules Jiang.

Another Two ”Initial Fork Offerings” On Their Way

An industrial player reveals that another two Chinese hard fork projects, Bitcoin Century and Bitcoin Diamond, are also on the way. He believes that this is an ICO in the disguise of a hard fork, or ”initial fork offering” as he claims.

“Initial fork offerings have become an innovative way to raise funds. But a premine is more like a scam instead of trying to make bitcoin great again,” says Jiang.

Will there be even more coins bearing the bitcoin name? Let us know in the comment section below!


Images courtesy of Shutterstock


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Tags in this story
Bitcoin, bitcoin cash, Bitcoin gold, ICO, IFO, li xiaolai, N-Featured, SBTC, super bitcoin
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Cindy Wang

Cindy is a cryptocurrency journalist who has been focusing on the Chinese community. She finds it fascinating to be part of the industry and hopes to see the world change for the better.