Topic: Circulating supply matters to you? - page 6. (Read 1118 times)
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.
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.
It all depends on how long the venture investors tokens will be blocked. For example, if tokens are blocked for 3 years, there is no point in buying after unblocking the venture investors tokens, because by that time the price will on the contrary increase, so investors can sell their coins in the overheated market. After their total sell-offs it may happen that everyone will forget about the coin and it will be extremely risky to buy after all the major investors have fixed their profits.
Its important about circulating supply about some token, not interested for investing in token or coin have much circulating supply and really need to know about the project have exact amount or circulating on the market. Some coins or token minting later about their supply due developer can manage well how to make the circulating supply added suddenly.
But not guarantee with all coins or token with small circulating supply will be up and the other side with coins have bigger supply will drop, many time with coins have bigger circulating supply drop drastically. Not only about circulating supply but also how developer trusted or not and can manage well about their project keep on higher price.
But not guarantee with all coins or token with small circulating supply will be up and the other side with coins have bigger supply will drop, many time with coins have bigger circulating supply drop drastically. Not only about circulating supply but also how developer trusted or not and can manage well about their project keep on higher price.
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.
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?
If you are talking about the amount of tokens that are already available for trading and other stuff in comparison to those tokens that are still locked and will get unlocked in the future, then i think it is pretty hard to give a general statement here. For example, if you have a very young project that is also still relatively small, then i think it is not a big problem, if a big share of the total supply is not yet in circulation and still locked. If you are having a project, that is already very big and that already has a very high marketcap at the moment, then i think it is not a good if they still have a lot of token to be unlocked. You always have to look at the fully diluted market cap then.
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?
You can evaluate the value of circulating supply if you have thoroughly researched the tokenomics of a project and understand how they have allocated the tokens in the initial phase. If you see that the circulating supply is way too lower than the max supply, you should think that what if the remaining supply is released in the market later on? That can affect the price for sure.So it is probably better if a token/coin has a circulating supply closer to its maximum supply which means that there is no chance of the team or some early investors dumping their coins in the market later on and put a huge impact on the price of the coin/token.
In general, a low circulating supply could be an indication of a project's potential for growth, but it could also make the project vulnerable to price manipulation or volatility. Therefore, it is not advisable to make investment decisions based solely on the circulating supply. The decision to invest in a project should be based on multiple factors, such as the project's overall vision, team, technology, use case, market demand, and competition, among others.
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?
Don't really pay attention, for examples like shiba inu where the supply is very huge but because the price is still fairly reasonable then it's not a problem and it will be a problem if we invest in coins with a very huge supply and expect high prices like hoping for a price of $1 on shiba inu .But the developers understand how important it is to maintain their supply in the market that's why many coins use the burn method like what Binance did for their coin BNB, the first time crypto appeared when going to burn it was often used to pump up the market but it seems it's not working well anymore so burning coins is only done to maintain supply.
big circulating supply are generally fine if accompanied with the fact that it has quite the liquid backing it up, and what I mean by that is the fact that despite the circulating supply, there are many that still try to invest in it thus the supply will do nothing but increase the general market capitalization making the coin bigger.
It's only bad if coin like meme coin with no utility at all that have that much circulating supply, that just means there's more useless coin in circulation meaning, everyone could easily get the coin relatively easy therefore the value plummeted.
see ethereum, despite having so much total supply, it will still valued high enough mainly because it's just that good.
It's only bad if coin like meme coin with no utility at all that have that much circulating supply, that just means there's more useless coin in circulation meaning, everyone could easily get the coin relatively easy therefore the value plummeted.
see ethereum, despite having so much total supply, it will still valued high enough mainly because it's just that good.
Circulating supply during listing matters a lot. I meant let's take a look at some tokens with big circulating supply and this gives more pressure to the price of token compared with token with less cirtulating supply during the listing. The vesting period means a lot caused by this will be preventing the dump to at the listing time caused by the inflation can be controlled by the developers. Circulating supply matters a lot caused by this will determine how many coins available in the market.
Bigger supply means lower demand right? This is I guess enough to explain its importance. We saw many projects having large circulating token supply which ended up falling afterwards. But does lower token supply determines a good project? Nope, but it is one of the factor. The concept itself, long term vision, and utility itself of the token or project in general, are others, in my opinion. This is not to generalize as well given that there are succeeding projects which are having large market cap. What it implies is that, it will give a project an advantage if it won't be that large because demand will instantly follow especially IF the project itself earned popularity on its release.
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?
It all depends if it is a new project or not. Checking for circulating supply is very important and for the market cap also to know whether the project we are about to invest in I'd going to do well in the market or not. This used to give us a detail of what kind of project we are investing in and what could be the probability of the project doing well in the market. 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?
If 100% is better, it means that there are no tokens left for the developer. But if it doesn't reach 100% it's not a problem either, as long as the project can be trusted. In fact, it's rare for a project whose total token circulation reaches 100%. It depends on the sales amount during presale. What is the fair percentage of a total max supply that are in circulation that can make you invest in a project?
Your question is so convincing. There's a difference between total supply and Max supply. However, I believe a 21 Million max supply is enough but the total supply of a project doesn't count to me and what's important is the project's fundamental concept, utility, etc.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 won't stop me from investing in a project whose use case and concept are killing it
Anything in the crypto space has risks, so risk and return factors need to be considered. I see that as the project has growth potential and expansion opportunity, the investment in the project will be more likely to be profitable. As well as assessing the cost of investing in a project, this includes initial investment costs and operating costs. If the total cost exceeds the expected return, the project may not be worth the investment.
When observing TGE, I am sure most people can appreciate these aspects, so learn to research and experience more to have valuable experiences in this space.
When observing TGE, I am sure most people can appreciate these aspects, so learn to research and experience more to have valuable experiences in this space.
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?
More the supply, less is the trust that it gets from userbase. Take bitcoin for an example, with a limited supply, it is going to get scarce over time and thus its demand rises automatically, you dont need to pump the price or make some manipulation everyday to raise its price.In general with a large supply you never know which investor might actually drop their bag and run causing the market price to crash. With advisors knowing that these projects will never do well in the long run, often resort to such practices, the investors who might be genuinely interested in it, also lose their cool and get frustrated.
for me it's not a matter of max supply but the most important thing is the initial circulation at the time of listing because that is the starting point for the formation of market interest in the project. if the initial circulation is too large then market interest will decrease and vice versa. I think the initial circulation is not more than 20% (adjust max supply).
Yes, This greatly helps me in finding hidden gems in the crypto space. Circulating supply is one of the factors that I'm seeing or judging if the altcoin is underpriced and helps me a lot in making profit. Though It's not that the case everytime since there are other factors too. Tokenomics, The team and the project product itself is just another important factors too. I remember myself back then being lucky to find low supply coins and having a low price, also being on my standard as a good coin in which I made most of my profits on trading. Small factors are just as important as those big factors in researching a potential project.
I think that circulating supply didn't matter a lot for me. The thing that matters a lot for me is about how the allocation for the token. the vesting period. The allocation must be fair. It must not be fully owned by the project, there must be also vesting period that to make sure if the inflation will not be crazy caused by the dev was dumping their tokens. I think that this is the main concern by people prefer to choose token with low allocation to the developers. that's it.
in judging fairness in investment of new altcoins I think instead of sweating over the circulating supply i'd say it's better to judge the tokenomics instead, you'd see greedy developer is when the token reserved for themselves are too much.
the circulating supply will only determine the value that it has after release, but tokenomics could show how good a project actually is, and if there's any harmful practice done by the developers that could actually make you lose money.
the circulating supply will only determine the value that it has after release, but tokenomics could show how good a project actually is, and if there's any harmful practice done by the developers that could actually make you lose money.
Jump to: