Fork value question *noob*

[Grep]

Hi guys

I have been chatting with a colleague that actually owns crypto but he doesn't know the answer either. So let's use Ripple as an example since it was the most recent that I know about. Ripple decided to fork and gave away 1 free forked coin for each Ripple coin or part therein you own.

Right so what happened next as far as I can tell is that a lot of people that were given their "free" forked coin, sold them off as soon as they got them.

Now question, where does that "free" money come from? Who actually pays it? Hopefully I have the whole story incorrect and will be very happy to be shown the light.

Grep

 

[acidrain]

Now question, where does that "free" money come from? Who actually pays it? Hopefully I have the whole story incorrect and will be very happy to be shown the light.

The money comes from those that see value in obtaining it and are willing to place a price on it.

If the question you are trying to ask is whether the fork is backed by physical value ( cash, assets, a company ) then the answer is no.

 

[friedpiggy]

The free coins you are talking about are issued from the total coins by the developers of the forked coin. Lets take BTC and BCH for example. The free BCH was taken directly from the total BCH coin pool on the blockchain and issued as a sort of airdrop to get the coins into circulation.

Hope that helped

 

[Grep]

100%, thanks guys.

 

[Hendrix]

Ripple fork? Wtf