Glossary

What Is an Initial Coin Offering (ICO)? An Initial Coin Offering (ICO) is a fundraising method used by cryptocurrency and blockchain companies to generate capital for developing new apps, services, or coins. ICOs are often compared to Initial Public Offerings (IPOs) in the stock market but differ significantly in structure and regulatory oversight. How ICOs…

What Is Know Your Customer (KYC)? Know Your Customer (KYC) refers to the obligation of financial institutions to verify the identity of individuals using their services. Also known as Know Your Client, KYC is a fundamental component of global efforts to combat money laundering and terrorism financing. While KYC is closely associated with cryptocurrency exchanges,…

What is KYC? KYC, or Know Your Customer, is a verification process used by financial institutions and service providers to confirm the identity of their users. The primary goal of KYC is to prevent illegal activities such as money laundering, fraud, and terrorist financing by ensuring that all platform users are properly identified. In the…

What is Liquid Staking? Liquid staking is a decentralized process that allows users to stake cryptocurrency tokens while retaining the ability to utilize their staked assets. In traditional staking, tokens are locked and inaccessible for the staking duration. Liquid staking solves this limitation by issuing tokenized derivatives representing the staked assets, enabling users to trade,…

What Is Liquidity? Liquidity refers to how easily and quickly an asset, such as cryptocurrency, can be converted into cash without causing a significant impact on its value. It is a critical factor in assessing the efficiency of a market and the ease of trading an asset. Bitcoin, the world’s first and most widely traded…

What is a Liquidity Pool (LP)? A Liquidity Pool (LP) is a smart contract-based reserve of cryptocurrency tokens locked in a decentralized exchange (DEX) to enable trading without the need for a traditional order book. Liquidity pools play a key role in automated market-making (AMM), allowing traders to swap tokens seamlessly and efficiently. How Liquidity…

What is the Market? The crypto market is a global platform for trading digital currencies, also known as cryptocurrencies. It enables individuals to buy, sell, and trade digital assets like Bitcoin and Ethereum. As a relatively new phenomenon, cryptocurrency trading has gained popularity in recent years, characterized by high volatility and significant price fluctuations on…

What is a Memecoin? A memecoin is a type of cryptocurrency inspired by internet memes and designed to be a humorous or entertaining alternative to mainstream cryptocurrencies. The first and most famous memecoin, Dogecoin, was created as a lighthearted, less expensive alternative to Bitcoin and was based on the popular Shiba Inu meme. Over time,…

What is Minting? Minting is the process of creating new tokens or NFTs (Non-Fungible Tokens) on a blockchain. It involves generating unique digital assets or cryptocurrency that are recorded and made available for use, distribution, or sale on the blockchain. Minting is a critical step for launching token-based projects, creating digital collectibles, or enabling decentralized…