Crypto Terms:
Letter I
What is Instamine?
Meaning:
Instamine -
a short time period after a coin launch when a large portion of its total supply is distributed to investors.
Let's find out Instamine meaning, definition in crypto, what is Instamine, and all other detailed facts.
Instamine is a short period of time right after the launch of a new coin when a large portion of its total mineable assets are mined. This may lead to a fast and uneven coin distribution between investors.
If a cryptocurrency experiences an instamine period, it means that a large amount of the asset was available early after launch, when the chances of investors being interested in the project were higher. The process typically means that the supply of cryptocurrencies is significantly greater and available at a lower price.
Instamining may be done deliberately, although in some cases it occurs accidentally and is caused by issues related to the mining algorithm.
New cryptocurrencies may offer numerous special features and benefits to stand out during their launch and attract the investors’ attention. One of such features can be setting up an easy way to mine new coins. Some cryptocurrencies opt to determine an initial instamining period to pique the investors’ interest in the digital asset.
Despite some similarities, instamining is not synonymous with pre-mining, a process when some or all of the supply is generated before the public launch of a cryptocurrency.
Some market analysts believe that instamining has ties to fraudulent activity. Others think that implementing such strategies upon coin launch creates unfair competition, particularly if a significant amount of the tokens is bought by one big group and resold at a much lower price.
When the open-source cryptocurrency Dash launched in 2014, the algorithm responsible for the mining difficulty adjustments malfunctioned. This caused roughly 2 million coins, about 15% of the total supply, to be issued to investors in just two days after the initial launch.
Although Dash did not experience massive negative consequences as the coins were sold at very low prices, in many cases, instamining can be detrimental to new cryptocurrencies.
cryptocurrency world as well but it is less heavily regulated than it is with the stock market. If a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-whale/">whale announces his intention to <strong>sell a large number of his holdings<\/strong>, for example, it can be interpreted as an indication that the token's price would decrease. Though it is not likely that he’ll be accused of insider trading.<\/p>","definition":"buying or selling stocks while possessing undisclosed private information about the stock.","status":"published","meta_title":"What is Insider Trading? Definition & Meaning | Crypto Wiki","meta_description":"Insider Trading meaning: Insider Trading - buying or selling stocks while possessing undisclosed private information about the stock.","meta_keywords":null}"
:model="{"id":421,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Cryptocurrency","level":"medium","author_id":1,"created_at":"2023-06-19T06:58:59.000000Z","updated_at":"2023-12-13T05:24:31.000000Z","slug":"what-is-instamine","title":"What is Instamine?","section":"I","keyword":"Instamine","content":"<p><strong>Instamine<\/strong> is a short period of time right after the launch of a new <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-coin/">coin when a large portion of its <strong>total<\/strong> mineable assets are mined. This may lead to a fast and uneven coin distribution between investors.<\/p>\n<p>If a cryptocurrency experiences an instamine period, it means that a large amount of the asset was available early after launch, when the chances of investors being interested in the project were higher. The process typically means that the supply of cryptocurrencies is significantly greater and <strong>available at a lower price<\/strong>.<\/p>\n<p>Instamining may be done deliberately, although in some cases it occurs accidentally and is caused by issues related to the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-mining/">mining algorithm.<\/p>\n<p>New <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cryptocurrency/">cryptocurrencies may offer numerous special features and benefits to stand out during their launch and attract the investors’ attention. One of such features can be setting up an easy way to mine new coins. Some cryptocurrencies opt to <strong>determine an initial instamining period<\/strong> to pique the investors’ interest in the digital asset.<\/p>\n<p>Despite some similarities, instamining is not synonymous with <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-pre-mining/">pre-mining, a process when some or all of the supply is generated before the public launch of a cryptocurrency.<\/p>\n<p>Some market analysts believe that instamining has ties to fraudulent activity. Others think that <strong>implementing such strategies upon coin launch creates unfair competition<\/strong>, particularly if a significant amount of the tokens is bought by one big group and resold at a much lower price.<\/p>\n<p>When the open-source cryptocurrency Dash launched in 2014, the <strong>algorithm<\/strong> responsible for the mining difficulty adjustments malfunctioned. This caused roughly 2 million coins, about 15% of the total supply, to be issued to investors in just <strong>two days <\/strong>after the initial launch. <\/p>\n<p>Although Dash did not experience massive negative consequences as the coins were sold at very low prices, in many cases, instamining can be detrimental to new cryptocurrencies.<\/p>","definition":"a short time period after a coin launch when a large portion of its total supply is distributed to investors.","status":"published","meta_title":"What is Instamine? Definition & Meaning | Crypto Wiki","meta_description":"Instamine meaning: Instamine - a short time period after a coin launch when a large portion of its total supply is distributed to investors.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}"
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current-chapter="I"
current-section="what-is-instamine">
