If a coin has a small supply and its utility value is higher than it would be worth more than a coin that has more supply and less of a utility value.
Coin A - 21,000.000 Supply and used to reduce fees when trading on the platform/exchange
Coin B - 100,000,000,000 Supply and used to reward gamers for playing on the platform so they can buy digital goods
Coin A could go at ICO for $1
Coin B would probably be $.01
Topic: Altcoin price (Read 155 times)
Depends on many things.Actually in the beginning the price is decided by the team. They set a price during ico. And set a maximum supply and issue the token to public. After being listed the prices are only decided by traders according to supply and demand .
Well, first of all, it depends on the number of coins issued. The more coins are sold on ICO, the lower the cost of 1 piece.
Secondly, it depends on the hard cap that wants to assemble the company. If it is 1 000 000 dollars. And they will release 1 million tokens for sale, then 1 token will cost 1 dollar.
Secondly, it depends on the hard cap that wants to assemble the company. If it is 1 000 000 dollars. And they will release 1 million tokens for sale, then 1 token will cost 1 dollar.
As the price of ico is more expensive mate and that ico will be successful, expect that this coin will gain hign price when it will be lunches in those markets. In addition, a the demand of that coin is higher, supply and price will also be higher because many crypto people want to buy that coin
Think it as that you are assigning a value for the project, the price of it is determined by the team but note that they want to reach hard cap. If the price is so high, they cannot reach.
The price of ICO token is set by ICO developers. When the token hit the exchanges, the price is set by maker demand (buyer and seller).
I think the initial price of these ICO tokens depends on the price of the ICO project.
After the token on exchange, the market will have a new estimate price of these tokens.
After the token on exchange, the market will have a new estimate price of these tokens.
I think price of tokens is formed taking into account following: total supply, max supply, how many coins will be in circulation, how many coins will be held by team.
I came to this opinion myself, so it is possible that i am wrong.
I came to this opinion myself, so it is possible that i am wrong.
The developer set the price, the coin price actually change in the whole day due to the trading activity. They set the price in the begining but they can't set the price after it listed in the exchanges site because the market is the only one which will determine the price of coin.
Maybe I don't follow something about ICOs economics, but how is the token price formed? Why are some coins as expensive as $5 -$10 while others cost about $0.001? What does it say about reliability or something like that?
Well it is really impossible to answer your question more or less thoroughly but let us make it short.
1) Mostly companies making ICO pretending to make completely new goods/services on the base of blockchain or replace / upgrade / complement something that allready exist in the big world with something based on blockchain tech or connected technologies.
2) Those companies making their own calculations on how much tokens they need to deploy and correspondingly how many funds they want to raise to have a smoothly running business and solid dividends available to investors.
So, like in the real world mostly those businesses will fail and their token price will go to zero cost. Some will become big. Expensive coins from your example are coins from businesses which are working or have a reasonable expectations that they will function one day. Low cost tokens are mostly from fault ICO's which turned to "zombie coin", a coin or token with no value which is used for market speculations by trading pump and dump groups.
And also there is one "middle" group. Some companies made their hard cap way too big or too small, some lack of special skills and so on. So those tokens are not zombies but they simply have less value.
Maybe I don't follow something about ICOs economics, but how is the token price formed? Why are some coins as expensive as $5 -$10 while others cost about $0.001? What does it say about reliability or something like that?
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