Circulating supply matters to you? - page 5.

kevinzxz

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Quote from: StormHawk on March 25, 2023, 01:34:57 PM

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.

jrrsparkles

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Any coin with the supply of atleast 1000BTC is the minimum requirement on an exchange for me to consider the pair for trading purpose alone, about investment I gave up on investing then a long time ago especially after 2018 I am convinced that no more project is going to be launched with any other intention than money making so only for trading preference I will go with minimum of 1000 BTC or I will stuck with my pending trade order for long time which I don't prefer.

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Quote from: StormHawk on March 25, 2023, 01:34:57 PM

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.

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Quote from: kevindjunaidi on March 31, 2023, 04:40:52 AM

the circulating supply is not very important to me and what is important in my opinion is the total supply, because a lot of total supply also has an impact on the price, make the price is difficult to increase very high (unless there is a burn), but what I avoid the most is an unlimited total supply, because it is very risky and makes me never invest in the project (unlimited total supply).

Circulating supply is very important if you have short to medium term investment intentions. The limited circulating supply in the market gives altcoins the opportunity to increase sharply before the total supply is released and circulated.

Unlimited supply does not tell if the project has potential or not, let's not forget that ETH is also a coin with unlimited supply, and it is the queen of altcoins. To evaluate a project with potential or not, I think it needs a lot of factors, supply is just a small factor that is not too important.

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Quote from: Hypnosis00 on March 31, 2023, 09:58:05 AM

Quote from: kevindjunaidi on March 31, 2023, 04:40:52 AM

the circulating supply is not very important to me and what is important in my opinion is the total supply, because a lot of total supply also has an impact on the price, make the price is difficult to increase very high (unless there is a burn), but what I avoid the most is an unlimited total supply, because it is very risky and makes me never invest in the project (unlimited total supply).

That is certain as some people are just focused on the circulating supply minding out how the total supply can affect the price. However, choosing coins doesn't just stop but also consider if that project has a use-case that would absolutely help us to determine the future of this project. Circulating supply or total supply, well, what matters most is to see the project continuously developing as the price will grow in the long run as long they show that they are worthy enough to trust.

Both are important, without an use case then it is impossible for any coin to achieve long term success, as a coin needs a strong community to survive and this is only possible if people find the coin useful.

However we cannot simply ignore the supply, even if a coin was good, if it had an almost unlimited supply eventually the coin will fail, as people will realize that their coins have a very high chance of losing their purchasing power on the future.

Hypnosis00

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Quote from: kevindjunaidi on March 31, 2023, 04:40:52 AM

the circulating supply is not very important to me and what is important in my opinion is the total supply, because a lot of total supply also has an impact on the price, make the price is difficult to increase very high (unless there is a burn), but what I avoid the most is an unlimited total supply, because it is very risky and makes me never invest in the project (unlimited total supply).

That is certain as some people are just focused on the circulating supply minding out how the total supply can affect the price. However, choosing coins doesn't just stop but also consider if that project has a use-case that would absolutely help us to determine the future of this project. Circulating supply or total supply, well, what matters most is to see the project continuously developing as the price will grow in the long run as long they show that they are worthy enough to trust.

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Quote from: StormHawk on March 25, 2023, 01:34:57 PM

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?

Personally if I think that the use-cases of the projects is not sustainable, I would choose not to invest into it at the first place. However, there might be times that it'll be challenging to tell if the project does have a good use-cases or none. As per the circulating supply, I don't think the success of it depends to that a lot, adoption does.

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Quote from: kevindjunaidi on March 31, 2023, 04:40:52 AM

the circulating supply is not very important to me and what is important in my opinion is the total supply, because a lot of total supply also has an impact on the price, make the price is difficult to increase very high (unless there is a burn), but what I avoid the most is an unlimited total supply, because it is very risky and makes me never invest in the project (unlimited total supply).

I also think that the total supply plays a bigger role than the circulating supply. And if the total supply is not limited, it can indeed play a bad role at any time. From the last one I can recall the LUNA crash, when a huge number of coins were issued in a few days. I guess that's what started the chain of bankruptcies and the bear market.

kevindjunaidi

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the circulating supply is not very important to me and what is important in my opinion is the total supply, because a lot of total supply also has an impact on the price, make the price is difficult to increase very high (unless there is a burn), but what I avoid the most is an unlimited total supply, because it is very risky and makes me never invest in the project (unlimited total supply).

worle1bm

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If the project is good although there are very few one's which have actual use case then supply always matter.The low supply and high demand even for temporary period can give you profits to fill your bags then we should focus on all things before investment.The more supply is not a bad thing if there is utility and demand to keep circulation for long period so main is how well the coin can do in market.

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Quote from: ifarted on March 29, 2023, 05:43:41 PM

A coins that have good amount of supply in circulation are most likely not doing good and also its price would be low too since when a person demands the said token then they can get it since the supply is not low. It's all about supply and demand, I am sure you know what it is. The more people demand and yet the supply is low then the more people pay more money just to own it

That is one good point, additionally the performance of high volume of circulation coins has been low due to inflation and advisors walking away from them. Most of the successful ones are deflationary, which is not a symbol of following bitcoin but rather not following the fiat economy of inflation.

The investors who are using trading as method to make money in the short or long term want to see prices and thus they want bigger prices in their time period.

so98nn

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First of all yes it does matter how much supply is there for a particular coin. Secondly, the reason why it is important lies in the basic formula of exchange that is demand and supply. It is but obvious that if circulating supply is very high then there would be no situation where we will have demand for that coin. If any High demands pops in then it would be simply diluted due to high and continue supply. This can over the time create an inflation like situation and thus make it harder for that coin to grow in terms of price per unit. I believe we should have Short supply and high demand will drive the projects success in no time.

jaberwock

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Quote from: tvplus006 on March 28, 2023, 07:11:57 AM

It is necessary to know how many coins early investors have and the timing of their unlock, as this can significantly affect the price of the coin. There is even such a trading strategy when you sell coins before unlocking investors' coins, and buy after unlocking when the Circulating Supply increases, which leads to a decrease in the price of the coin.

I think this isn't a strategy at all but more like a common sense. They need to sell early because they are afraid that the coin will dump when it was unlocked as those big investors might sell a big portion of their coins. If they did and the price dips, that is also a perfect time for buying but you should only do that if you already research about the project and you found out that it is not a shit coin, hype coin or something like that. Circulating supply won't be included there for no reasons but they play a role along with other data's. We need to make use of them in order to be more successful when investing.

ifarted

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A coins that have good amount of supply in circulation are most likely not doing good and also its price would be low too since when a person demands the said token then they can get it since the supply is not low. It's all about supply and demand, I am sure you know what it is. The more people demand and yet the supply is low then the more people pay more money just to own it

Psynthax

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Quote from: Kalchef on March 28, 2023, 08:55:30 AM

It doesn't matter to me unless the project has been out for years and the circulating supply is not increasing, this is when to be very suspicious about the project, a new project will have a small circulating supply at first, and as time goes by the circulating supply will increase.

such thing usually already being shown in tokenomics, when the vested unlocked, how much circulating supplies will increase, could also be used to judge whether a project is having abnormal allocation, but the most important thing is that the project has quality.

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Quote from: Pelana vreo on March 29, 2023, 02:47:45 PM

When the token circulation is large enough, then you need to have a large amount of liquidity to avoid falling prices, no one can control the price of tokens in the market, but too many tokens are not good for the price of tokens in the future.

Falling prices for every project are unavoidable. You will not know when they are about to fall but having these factors like the circulating supply and its market cap will give you an idea of whether to proceed to invest and hold it.

Quote from: Pelana vreo on March 29, 2023, 02:47:45 PM

therefore tokens need to have a max supply

Except the meme coins that has unlimited supply and that determines the price for each of them because if a project has a limited supply, how much it got can easily be computed and you'll project the future price of it, market cap and your potential profit. I am sure that many does that before they invest.

Kgdktac

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It ultimately depends on various factors such as the nature of the project, the total supply, the token economics, and the overall market conditions.

It's important to note that the circulating supply is just one factor to consider when evaluating a project.

Regarding brand new projects, if the use case is compelling and the project has a solid team and community support, it may be worth considering investing in despite the low circulating supply.

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Quote from: StormHawk on March 25, 2023, 01:34:57 PM

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?

When the token circulation is large enough, then you need to have a large amount of liquidity to avoid falling prices, no one can control the price of tokens in the market, but too many tokens are not good for the price of tokens in the future. therefore tokens need to have a max supply

DapanasFruit

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Though there can be some rare exemptions, I would always prefer to deal with low-supply type of projects...maybe not more than 100 million though it all depends a lot on the type of project, how useful it can be, how the market is perceiving it and the people behind the platform. Usually, there a lot of factors why a platform can be valuable aside from the published circulating supply. We have to remember that there are low-supply projects that got a lot of problems taking off. and got no big potential for real growth. So we need to balance things off in trying to understand this whole thing.

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Quote from: StormHawk on March 25, 2023, 01:34:57 PM

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?

Before I decide to invest in a project, I always make sure I understand the token economy of a project. I don't just look at the circulating supply but also consider the maximum supply of the project.

Some projects has a total supply but no maximum supply which means new tokens can be printed whenever they want and be introduced into the market. Coin like dogecoin has an infinite amount of supply.

As for circulating supply, unless the tokens are locked for a very long amount of time, I won't be comfortable if the circulating supply isn't upto 30% of the total supply available to the market to trade.

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