Topic: Circulating supply matters to you? - page 4. (Read 1118 times)
It's doesn't matter if circulating supply is high or not even max supply is infinity like ETH, XRP and BNB as long as the project have a good fundamental and big ecosystem on their development it's not make me worry about it which is never invest on altcoin with don't have utility without clear prospect such meme coin. Safe investment your money in the right place and entry at the right time
Of course it is very important, because before buying or investing in a coin,
one of the things that must be analyzed is the circulation of the supply and the total supply,
so that we know what the appropriate price is for the coin, whether we are buying expensive or undervalued,
so that is the importance of analyzing supply.
I just don't understand why people are not speaking out, project should have more than 50% of its current supply in the market at launch, this was how things were at the beginning of Crypto but the VC's greed has destroyed trust. A lot of these projects' prices are down only just because the team and the VCs keep dumping on retailers. Inch is a good project with bad tokenomics, the price of the tokens has been down only and I don't see this changing and there are many projects in this space that are in a worse situation than Inch. I am not surprised all these small-cap projects are receiving some love recently even VCs and warming up to them. BNB is a very good example of how tokenomics should be managed, not pumped at the beginning and down from there
Do you mean it should have less then 50% in the market at launch? Because you can't really prevent people from dumping when most of it is circulating already.Also bitcoin didn't have any circulation when it started and it's doing fine. Method of circulating coins at the start came only after icos with premined coins and after that layer 2 token sales where supply was distributed between buyers and others.
Pumping your own token or coin would be down right illegal, so it's either done by pump & dump crews or with organic growth,
BNB was pretty much basic ICO with erc20 tokens and that too was dumped at the start, in hindsight it was a short time when it was still dumping but no one knew that at the time, also binance seemed very much like a scam at the start with pointless erc20 exchange token and no one wasn't sure if it's going to be in it's own chain any time soon. Or ever.
I just don't understand why people are not speaking out, project should have more than 50% of its current supply in the market at launch, this was how things were at the beginning of Crypto but the VC's greed has destroyed trust. A lot of these projects' prices are down only just because the team and the VCs keep dumping on retailers. Inch is a good project with bad tokenomics, the price of the tokens has been down only and I don't see this changing and there are many projects in this space that are in a worse situation than Inch. I am not surprised all these small-cap projects are receiving some love recently even VCs and warming up to them. BNB is a very good example of how tokenomics should be managed, not pumped at the beginning and down from there
circulating supply honestly matters so much when the coin initially gets listed in some exchange, it being frequently used to determine the real value of a coin.
from the circulating supply alone we could somehow have a rough guess at which value some coin gonna start at.
from the circulating supply alone we could somehow have a rough guess at which value some coin gonna start at.
I think the total number of tokens is not that important. First of all, I always look at tokenomics, because it can be used to understand what percentage the team will own and how the common pool is divided and for what purposes it is much more important than just the number. Using these parameters, you can roughly estimate whether the project is worth attention or not.
What is the fair percentage of a total max supply that are in circulation that can make you invest in a project? It is fine to avoid a project that has low circulating supply? Why? What about if the project is a brand new project and the use case is killing it?
Circulating supply does matter to some extent when I'm considering investing in a project, but it's not the only factor. A fair percentage of the max supply in circulation really depends on the project, its stage of development, and its overall potential. If a project has high supply coin, then likely the value of each coin would be very less. If the supply goes high all of the sudden, this will indeed crash the price of the coin. If a coin has very low supply, it might raise some concerns, because very likely the developers are using the low supply to manipulate the market. The main thins is, you should dig deeper into the project's tokenomics, roadmap, and see how the team plans to distribute the coins in the market. If the project has a killer usecase, I doubt supply would be an issue.Regarding low supply coins, wouldn't it be rather hasty to infer manipulation on part of the developers? After all, a low supply doesn't inherently signify market manipulation!
I do agree with your view on the importance of the project's tokenomics and roadmap. It's always critical to dig deeper. But your point about a killer use case potentially overriding supply concerns—aren't we treading on thin ice here?
When there is a low circulating supply relative to the total/max supply, usually the case is : the DEVs control that max supply by holding it in their own wallets and waiting for the project to gain traction.
They flood the market once it gets listed.
Once listed in big exchange, the price goes up, they unload their reserves at market prices, and they cash their checks.
They flood the market once it gets listed.
Once listed in big exchange, the price goes up, they unload their reserves at market prices, and they cash their checks.
Circulating supply does not matter any longer here in cryptocurrency market, because Meme Coin that has large amount of circulating supply are really doing well than so many coins that has less circulating supply, because what matters is the team and how the project being built and working towards the roadmap of the project through website, before investing in any new coin's, have to do your research for better understanding, while holding for long term or short term holding investment.
Circulating supply means how liquid is the coin is, but it has no correlation to know if the coin is legit or not based on the circulating supply. Many shitcoin has a high circulating supply due to trend or hype, this make people are trying to make a quick profit. They think since the circulating supply is high, it's mean people are really want it, so he hold than sell it to make a huge return. But he's not expect tomorrow the circulating supply of the coin is really low.
This is very common among shitcoins being promoted with hype. The reason why many newbies fall into buying these shitcoins and not bitcoin. They don't understand that Bitcoin even in a limited and small supply is for the long term. However many people make profits over such coins but such people are only a handful who would not come to forums like these.Hence circulating supply makes sense but then when you keep yourself limited to bitcoin you don't need to worry about it.
What is the fair percentage of a total max supply that are in circulation that can make you invest in a project? It is fine to avoid a project that has low circulating supply? Why? What about if the project is a brand new project and the use case is killing it?
Low total supplies have the potential to make the price of the coins rise higher like what we see from the current top altcoins nowadays and also add the event where they burn some coins from the total supplies, it will gonna make the demand bigger and the liquidity healthy but these things will not gonna happen just because of that. other important matters are needed as well, especially the credibility of the owners of that project and also the team behind it because if they are totally unanimous and they are a completely new team with no known credentials, all those traits for a coin is nothing.
Anyway, only thing that matters regarding to tokens is their issuance rate as that might cause inflation, so staking / mining rate needs to be unsustainable. But this has nothing to do with max supply as it applies to low supply coins/tokens as well.
What is the fair percentage of a total max supply that are in circulation that can make you invest in a project? It is fine to avoid a project that has low circulating supply? Why? What about if the project is a brand new project and the use case is killing it?
We should not always based on decisions on the circulating supply of a crypto project because even with that, the project can still crash. I need to based out decisions on how strong the project team is and what they have to offer to the community. When you see a project that have an experienced team backing it, the team would be ready to spend money money on marketing plans and budget because that is of the tools to attract investors to a project to increase awareness and the rate investors would be longing to holding the project token for as long as they want. Circulating supply means how liquid is the coin is, but it has no correlation to know if the coin is legit or not based on the circulating supply. Many shitcoin has a high circulating supply due to trend or hype, this make people are trying to make a quick profit. They think since the circulating supply is high, it's mean people are really want it, so he hold than sell it to make a huge return. But he's not expect tomorrow the circulating supply of the coin is really low.
If the circulating supply is very large, like DOGE or PEPE, but a coin costs for example 1 dollar, this is a reason to think that not many coins are in circulation at the moment, and that there will be a unlock in the future. When new coins come on the market, the price will drop and not likely recover to its previous value. Or coins appear every day, like EVMOS from the COSMOS ecosystem. Because of the increased supply, the price is constantly falling. 
Circulating supply means how liquid is the coin is, but it has no correlation to know if the coin is legit or not based on the circulating supply. Many shitcoin has a high circulating supply due to trend or hype, this make people are trying to make a quick profit. They think since the circulating supply is high, it's mean people are really want it, so he hold than sell it to make a huge return. But he's not expect tomorrow the circulating supply of the coin is really low.
The large amount of total supply or circulating supply does not matter, what matters is the team serious and what the road map of the project and whitepepper to know the plans of the Meme Coin, take a look of Shiba Inu, and HEX Coin, this two coin surprised me, and is when I was new in cryptocurrency market which I have come and cross them at early stage, I was doubt because of the circulating supply, but later the early investors make a lot of profits. That makes me change a mindset not to look huge supply, but look towards the team and plan of the project.
What is the fair percentage of a total max supply that are in circulation that can make you invest in a project? It is fine to avoid a project that has low circulating supply? Why? What about if the project is a brand new project and the use case is killing it?
Low total supplies have the potential to make the price of the coins rise higher like what we see from the current top altcoins nowadays and also add the event where they burn some coins from the total supplies, it will gonna make the demand bigger and the liquidity healthy but these things will not gonna happen just because of that. other important matters are needed as well, especially the credibility of the owners of that project and also the team behind it because if they are totally unanimous and they are a completely new team with no known credentials, all those traits for a coin is nothing.
Anyway, only thing that matters regarding to tokens is their issuance rate as that might cause inflation, so staking / mining rate needs to be unsustainable. But this has nothing to do with max supply as it applies to low supply coins/tokens as well.
What is the fair percentage of a total max supply that are in circulation that can make you invest in a project? It is fine to avoid a project that has low circulating supply? Why? What about if the project is a brand new project and the use case is killing it?
Low total supplies have the potential to make the price of the coins rise higher like what we see from the current top altcoins nowadays and also add the event where they burn some coins from the total supplies, it will gonna make the demand bigger and the liquidity healthy but these things will not gonna happen just because of that. other important matters are needed as well, especially the credibility of the owners of that project and also the team behind it because if they are totally unanimous and they are a completely new team with no known credentials, all those traits for a coin is nothing.
What is the fair percentage of a total max supply that are in circulation that can make you invest in a project? It is fine to avoid a project that has low circulating supply? Why? What about if the project is a brand new project and the use case is killing it?
actually it depends on the project, if the total supply is a lot but the project is good and useful, then I might still be interested to investing in the project, but I've never invested in a project that has unlimited total supply, because the price is very difficult to increase, so I prefer to avoid it than I take the risk to invest in a project whose total supply is unlimited.
What is the fair percentage of a total max supply that are in circulation that can make you invest in a project? It is fine to avoid a project that has low circulating supply? Why? What about if the project is a brand new project and the use case is killing it?
The fair percentage of a total max supply that can make an investor invest in a project is subjective and can vary depending on the individual's investment strategy and risk tolerance. Some investors may prefer projects with a lower circulating supply as it may indicate scarcity and potential for price appreciation, while others may prefer projects with a higher circulating supply as it may indicate a more stable and established project. It is not necessarily wrong to avoid a project with low circulating supply, as it may pose higher risk such as susceptibility to market manipulation and volatility. It is important to conduct thorough research and analysis of the projects fundamentals and team before making investment decisions.
Circulating supply does matter to some extent when I'm considering investing in a project, but it's not the only factor. A fair percentage of the max supply in circulation really depends on the project, its stage of development, and its overall potential. If a project has high supply coin, then likely the value of each coin would be very less. If the supply goes high all of the sudden, this will indeed crash the price of the coin. If a coin has very low supply, it might raise some concerns, because very likely the developers are using the low supply to manipulate the market. The main thins is, you should dig deeper into the project's tokenomics, roadmap, and see how the team plans to distribute the coins in the market. If the project has a killer usecase, I doubt supply would be an issue.
Right, it's also worth paying attention to the distribution of supply among categories of investors. If the developers and main investors hold the bulk of the supply, then such a coin can easily make a dump, especially if the timing of unlocking such coins is not that far from the listing date of that project on the exchange. If most of the coins are blocked, however, it is worth calculating the FDV parameter to understand how much money the project will need to raise when the supply on the market increases.
Jump to: