What is pre-mining? How does it work?

18 May 2024

What is pre-mining? How does it work?
Some cryptocurrencies are produced through a series of processes called mining. Cryptocurrency mining is the use of devices with special software and hardware to confirm cryptocurrency transfer transactions by solving complex problems and as a result, being rewarded with new cryptocurrency. Pre-mining refers to the mining operations carried out by the developers of a cryptocurrency project before it is released to the market. In this article, you can find the answer to the question of what pre-mining is.

What is pre-mining?

Pre-mining refers to the production and distribution process of a cryptocurrency before mining operations begin. Pre-mining; It can be interpreted as a way to reward project developers and project investors. The pre-mining process involves distributing or selling a cryptocurrency project before it is offered to the public. Pre-mining is an important process that affects the supply of a cryptocurrency.
How Does Pre-mining Work?

In cryptocurrencies with an ICO process, a pre-mining process can be created for pre-sale to people who support the project and want to invest. Pre-mining is similar to the practice of distributing shares to the founders of a project and the employees of the team developing the project before the initial public offering of the project. Crypto assets distributed in the pre-mining application will create significant value for their owners as the project continues to develop and is bought and sold by investors.

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