Ethereum has had an issue with its supply shrinking, which would often be the result of different investors trying to mine cryptocurrencies that are on the Ethereum blockchain. Ethereum’s gas fees saw a noticeable spike following a new token airdrop finally launching.
The brand-new crypto project saw a very successful launch, with it running out of tokens to supply in a short while. For the first few minutes after launch, the first of the tokens that it releases will be free to mint, and this was an opportunity that no real crypto investor could afford to miss.
The only cost of minting these coins is that they need gas to mint, which comes with its fair share of expenses.
Starting the Minting on Sunday
Before XEN would allow anyone to properly mint their tokens, they would first have to deploy the necessary contracts the Ethereum on Sunday. Once Ethereum made it clear that they had received the necessary contracts, the minting process could finally begin.
The project is a dream venture that serial entrepreneur and early Gooogle engineer Jack Levin was able to come up with. Throughout its website, XEN had made it clear that it had followed the original blueprint that Satoshi Nakamoto left behind when he made Bitcoin.
The protocols do not require any permissions, are completely decentralized, and are also completely on-chain. Interestingly, XEN has completely forgotten having to make use of any token or pre-mint sale. Therefore, only the game plan that they have for the XEN token and the underlying conditions of the market can affect its price.
Why is Minting XEN Taking so Much Gas?
Of course, given all of the excitement surrounding XEN, it is becoming very obvious that almost every investor is at least trying to mint it. However, that does beg the question, other than its popularity, why is it that XEN is charging gas money from all of its users?
The simple answer to that would be that XEN is available to the mint for every address on the network. The number of tokens that each investor can receive will often come down to a complex formula that will find out two things. One, it will find out how many people have interacted with the token and how long most people are willing to wait to get their tokens.
Minting XEN will only get more Difficult
Given how this cryptocurrency is set up, it will be increasingly difficult to mint XEN, which will significantly drive up the price of its coin. But despite having just been released, it makes no effort to prevent all forms of Sybil from attacking. Therefore, there is nothing stopping an investor from making multiple accounts and claiming tokens on each one.
