- A New York Times reporter created Idiot Coin to illustrate the craze around so-called hype coins.
- Millions of people wanting to make money have been drawn in by hype coins that hold little intrinsic value or are outright scams.
- Reporter David Segal marketed Idiot Coin to look like an obvious fiasco: “Def NOT going to the moon!”
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In the world of hype coins, developers in the highly speculative end of the cryptocurrency market promise riches to potential investors with appealing-sounding assets that in reality have little intrinsic value or are outright scams. To explain and explore that world, a reporter for the New York Times created Idiot Coin.
“The point was to demonstrate that creating a hype coin doesn’t take expertise and that many are flimsy and dangerous,” reporter David Segal wrote in a feature entitled “Going for Broke in Cryptoland”.
Segal detailed his journey that he wanted to end with no one financially harmed. His report said dozens of hype coins are created every day by developers who operate with little oversight and draw in millions of people looking to make some quick money.
“It usually ends poorly,” with most tokens becoming worthless within a couple of weeks while the developers can rake in tens of thousands of dollars or more, he wrote.
Britain-based Segal in creating Idiot Coin consulted two…