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LINKS FOR ADDITIONAL READING FOR THIS VIDEO & ALL INFO IN TEXT DOWN BELOW:
Definitions: https://www.cryptocompare.com/coins/guides/what-is-a-premine/
Pros and Cons: https://www.coinist.io/pros-cons-of-premined-cryptocurrencies/
Morgan Creek Capital stays away from premined coins: https://www.elitecurrensea.com/forex-and-cfd-blog/cryptocurrency-analysis/crypto-news/premined-crypto-assets-are-avoided-from-index-funds/
Founder of Ethereum’s take on premined coins: https://www.cryptoglobe.com/latest/2018/10/vitalik-buterin-under-fire-over-ethereums-premine/
Compare to Proof of Work mining: https://cryptobriefing.com/the-miners-dilemma-premined-coins-making-headway/
Understanding the economics behind premined and PoW coins: https://cryptobriefing.com/instamines-stifle-crypto-adoption/
If you are somewhat new to this cryptocurrency space and you’re finding yourself curious about what it means if a coin is premined, significantly premined or instamined, I just want to say congratulations, I consider this a level up scenario because you’re starting to dig deeper and possibly fall into a mini rabbit hole with this one. Don’t worry, it’s a topic worth exploring since it will make you a better investor in the long run.
Premine: “A premine is where a developer allocates a certain amount of currency credit to a particular address before releasing the source code to the open community.” So essentially a premine occurs when the developer or developers decide for themselves how to allocate certain percentages of the coin supply before it’s open to the public.
*Note that a coin that is premined doesn’t necessarily mean it has been 100% premined, this percentage can range from a small percentage to a significant percentage.
Instamine: “the first few blocks have super normal block rewards, so only those miners in at the start are able to gain large holdings of the total % of that crypto currency.”
Maybe you’ve heard these phrases mentioned about different cryptocurrencies before. Maybe you picked up on the fact that these phrases are rarely brought up as a positive thing. Maybe that’s why you wanted to watch this video to understand exactly why that might be the case. If that’s so, I’m glad you did because that’s exactly what I’ll be going over next.
Cardano’s ADA would be considered premined, right?
Appreciate your hardwork
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Thx , it's indeed a very usefull video. Could you explain 'POS' /dpos in a video , I can't see why a nonce is used there if the miner of that the block is known in front. With BTC-POW it's obvious but here I really don't see it and it's very hard to find the exact explication on you-tube. Or probably the difference between both 'nonces' For POW I searched 3 months , POS I gave up before the search start. 🙂 Or a good link off course. Have a nice day , Heidi. xx
Your opinion on store of value vs medium of exchange? From an economic view and not politics.
Really great info!!!
Is cova this token worth investing… is a “Ai” token I heard
Great video I wondered the pros for the average investor but it seems to not really help the average investor
It is interesting because, while the "No ICO – No Pre-mine – No Insta-mine" coins do seem to feel more genuine, it also has to be remembered that that situation also usually means no development funds for the project and requires perhaps a different mentality on the part of the developers. Do they have to keep their "day jobs" in order to continue working on the coin? Are they not going to be able to get adequate legal advice to navigate the ever changing crypto waters (if that is a concern … ) if they are checking the couch cushions for spare change to pay a lawyer? Is the community that springs up around the coin going to wait patiently for the DEX listed on the roadmap, when all the developers are only working nights and weekends?
Are projects without these beginnings more of a passion project for the developers, and therefore more likely to succeed? … or is a developer allocation of a reasonable amount of pre-mined coins an incentive for them to work for success?
Not sure I know, lol. … just interesting to think about. … Liked the video!
Hey Heidi, thanks for this video, very interesting. Any chance you could do a video on how the price of Bitcoin is determined from moment to moment worldwide? I'm guessing each exchange can calculate it's own based on its trades, but how is the price set across exchanges, etc? Do they all talk to each other? Thanks and keep up the great work!
premine, instamine…. whatever it is called it is still type of centralization…
She is electric! Yes! Tongue Tied by Grouplove, Mr Brightside by the Killers, My Type by Saint Motel–this is sonic heaven!
Thank you …
You do great tech analysis Heidi! Keep up your great work and contributions to the crypto space!
always like your information from your channel. thanks. Always good to know how to allocate flow of things.
St kitts, hows it going so far? Looks better than rainy scotland 🙂
Lightning Network
The only thing anyone needs to recognise is that you are the cutest individual to have ever existed on planet Earth. Cutest harbinger of Skynet and doom ever. Jk
XRP, does it fall into any of the Categories? They have some XRP locked up in Astro accounts. Cardono and stellar and Tron are all pre-mine as well.
As always THANK YOU!! I have been in this vase a little over a year now but trying to learn the right way and stay away from all the Fud and ridiculous it’s really tough so there’s only a few people that I do even watch on YouTube and you are definitely one of them that I trust so thank you keep up the good work and look forward to your next video!!
Excellence !!
Pre mine makes sense for companies (aka tokens)