– the act of allocating a project’s tokens to the development team and its insiders.
These tokens are said to be previously mined, but generally no actual computation work is done, rather a fixed amount of the supply is allocated before a project issues its tokens to the public.
Examples of projects that issued pre-mined tokens include Ripple, Cardano, Stellar, EOS and Neo. Usually criticized since the act of premining can only be performed by a centralized entity that has control over the entire blockchain.
Ya the founders became billionaires from everything they got in the pre-mine.