The process of mining a large portion of the total mineable tokens or coins within a short timeframe right after the launch of the crypto project is known as instamine. This leads to an uneven or quick distribution of the asset among the investors.

Whenever a crypto project undergoes an instamine period, a large supply of the digital asset is made available to the investors when the appetite of the investors is on the higher end. A lower price of the crypto asset is a by-product of instamining as it leads to an increased supply of the token. Although most of the time, instamining is deliberate, it can also happen due to accidental mining algorithms.

Instamining is different from pre-mining, although there is a similarity between both processes. During pre-mining, some of the coin’s supply is generated from making the digital asset available to the public. There are crypto experts who associate instamining with fraudulent activities occurring in the crypto space. This sometimes can even lead to unfair competition as a whale might buy the tokens for significantly low prices.

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