[lewi]

  It's 100% premined, which smells as scammy as Ripple.

It needed to be as there are no miners in the IOTA network.

Additionally, In contrast to conventional ICOs, IOTA had 0% of their ICO reserved for founders. Not a single iota. The founders had to purchase their technology back during the ICO.

Furthermore, there was no allocation for foundation or ecosystem funds. They asked the community to donate for this foundation to exist. They reached 5% of total supply and that is what the foundation runs on. (~140Ti)

  I've heard they rolled their own crypto.

Its easily searchable, please inform your self.

  it's an "append and forget" blockchain, lol.

Can you please explain the issue with this?

[tromp]

> IOTA had 0% of their ICO reserved for founders.

So the founders were forced to buy IOTA from themselves if they wanted some?

[lewi]

Yes

[Mithorium]

Think about what that means. If I issue my own currency and "sell" it to myself, any amount I bought would be free

[ryanmerket]

As long as the price goes up...

[nhaehnle]

So they didn't reserve any iotas for themselves; instead, they got the BTC that people used to buy the initial iotas. Six of one, half a dozen of the other.

... which isn't actually so bad when you think about it, as long as those BTC all went to their foundation.

Iota has bigger problems, like pretending to be more efficient by using a DAG, when in reality everybody still needs to see the whole tangle to verify transactions.

[lewi]

The BTC about 500k USD worth, of which 200k got taken as VAT, was used to develop the technology for the first 2 years. Only in the last month have the IOTA foundation been able to legally access the money donated to them by the community.

As opposed to say, tezos which has 232mil to develop their self-governing token. Additionally, "the founders get 8.5% of the fiat proceeds in cash in addition to 10% of the tokens"\

  Iota has bigger problems,

Can't attest to this. But if you are interested in discussing the tangle I suggest joining the slack. Specifically check out #tanglemath

[Cthulhu_]

> The founders had to purchase their technology back during the ICO.

Which is still dirt cheap and they got first dibs so nothing major there.

[lewi]

So its functionally the same as an ICO with a 40% premine? Of which 20% of the tokens go directly to the founders because they figured out how to write a paper.