"Token Distribution" TAG

SAFT
  • glossary
A Simple Agreement for Future Tokens, or SAFT, is an investment contract offered by cryptocurrency developers to accredited investors in a private placement, offering a method of financing early stage projects modeled after the YCombinator SAFE. The SAFT conveys rights associated with the token prior to the development of the tokens’ functionality, with investors receiving...
Pump and Dump
  • glossary
Pump and Dump schemes refer to cryptocurrency launches in which the project’s team hypes the currency to pump up its price, sells all their holdings immediately after and disappear with they money. These were much more common in 2013, when many new cryptocurrencies were launched. As a result, the teams behind new cryptocurrencies face heightened...
Faucet
  • glossary
A faucet is a giveaway system intended to help the adoption of a cryptocurrency. A faucet will give away a set number of coins up to a limit for free, or via random distribution at a set internal. The idea is that by giving away small amounts of currency for free users will then spend...
Genesis Block
  • glossary
The first block recorded on a blockchain is called a ‘genesis block.’ Genesis blocks, unlike other blocks, must be hardcoded into the software, since there are no previously broadcasted blocks for the genesis block to reference.
Initial Coin Offering (ICO)
  • glossary
An ICO is a popular crowd fundraising mechanism for startup cryptocurrency projects, in which a percentage of the initial token supply is sold to early supporters. ICOs originated with Mastercoin in 2013. Many ICOs use the Ethereum smart contract platform as a protocol to create and sell new tokens under the ERC-20 standard; Ethereum itself...
Anti-money Laundering (AML)
  • glossary
The purpose of Anti-money Laundering regulations is to criminalize the practice of generating money through illegal activity. Businesses considered money transmitters, including wallets and exchanges, may be lawfully required to implement internal AML policies. AML compliance, regulation and techniques vary depending on location and government.