pre-mine, premine, premining
1. general
Premining is the act of mining a portion of cryptocurrency coins before the blockchain is publicly launched. This is typically done by the developers of the cryptocurrency. The premined coins are often used for funding development, marketing, and other initiatives to grow the cryptocurrency community.
1.1
"The developers premined 10% of the total supply to fund future development and marketing efforts for the cryptocurrency."
2. purpose
Premining can serve various purposes. It can be used to reward early adopters, fund future development, or distribute coins in a crowdsale. However, it can also be used for less noble purposes, such as pumping and dumping the coin for personal gain.
2.1
"Premining allows developers to have funds readily available for development and promotional activities. However, it's important for potential investors to be aware of how these premined coins will be used."
3. controversy
Premining is often a controversial topic in the cryptocurrency community. While it can provide necessary funding for a project, it can also be seen as a lack of fairness, as it gives the developers control over a large portion of the coin supply before the public has access.
3.1
"Critics argue that premining can lead to centralization and manipulation, as it gives a small group of people control over a large portion of the coin supply."
4. comparison
Coins issued through an Initial Coin Offering (ICO) are generally not premined. Instead, they are created and distributed through a smart contract at the time of the ICO.
4.1
"Unlike premined coins, coins distributed through an ICO are created at the time of the ICO, providing a more immediate distribution of the coin supply."
* All terms and definitions may update as the Cryptionary improves.
Tools
Contact
Buy Hodl Sell © 2019-2024
v4.2.2