The blockchain technology was built for DECENTRALIZATION purpose, the database is spread over multiple computer nodes in order to be more secure and to not be modified by a single party without other nodes confirming that modification.
However many companies have copied and modified the source code of Bitcoin, Litecoin and Ethereum which are open source, they have changed the code to be CENTRALIZED (so they have full control, just like banks over fiat money) and pre-mined the coins from which they took over 50% of all the coins.
So why is this dangerous?
When a single company owns the majority of a coin they can manipulate the price by selling and buying on the exchanges. When all the people are buying that coin and the price goes up, they keep dumping their own coins (created from thin air) on the exchange and selling massive amounts blocking the coin price going up, slowing it down or making the price drop and then when the price is down they can buy again to earn another round of money from fools.
So here is the list of coins with DECENTRALIZATION removed, we know these may be your favorite coins:
- Bitcoin Cash
It is created by a big Chinese mining company which have copied the source code of Bitcoin, modified it, changed the block size from 1MB to 8MB, removed the decentralization, pre-mined a significant number of coins for themselves and also they took all the lost coins from bitcoin, including the coins of dead people which were not accessed for many years. You can be seen here huge wallets of BCH which are not similiar to those of BTC https://bitinfocharts.com/top-100-richest-bitcoin%20cash-addresses.html
The owners were spreading fake new in order to grow the BCH / BCC price and when it reached 0.5 BTC they have sold a massive amount to fools.
This coin was probably created from Litecoin source code by a single US company, modified it, they removed the decentralization and installed the entire coin database on their servers for full control, pre-mined 99,992,725,510 XRP from which only 39,009,215,838 XRP was sold to the public and the remaining 60% of the coins are held by the owner company and sold on a regular basis on exchanges for their own profits.
Is another coin created by a Chinese company from the source code of Ethereum which they claim is the new Ethereum, but again with decentralization removed and 100,000,000 NEO pre-mined coins from which they sold 65,000,000 NEO and the rest are kept for themselves in order to manipulate the market price and for their own profits. NEO is also supported and controlled by the Chinese government which want to destroy decentralization from crypto coins by releasing multiple ICOs under NEO, so they can be in full control of the crypto market. NEO also contain some sort of ponzi scheme to make people buy and hold the coin by offering free GAS coins for buying and keeping NEO in their wallets.
Is another Chinese coin created as an ICO under NEO which is centralized with a pre-mined of 100,000,000 ADX coins and sold 60,248,315 ADX, the rest of 40% coins are kept by the coin owners for profits and market manipulation.
Is a Chinese coin created as share for NEO holders, in order to make people buy and keep NEO in their wallets the owners of the coin offer free coins to NEO holders. GAS is a centralized coin with a total of 15,334,992 GAS pre-mined coins and 9,691,828 GAS distributed coins.
While there are nothing wrong with trading these coins, we recommend caution if you decide to hold these coins for a longer term which are prone to owners manpiulation and tracking. We will also post a list of Top 5 Decentralized blockchain crypto coins.
You can trade these altcoins with BitRaptor Machine Learning Crypto Trading robot.