Author

Topic: Determining market cap for an ICO (Read 601 times)

newbie
Activity: 43
Merit: 0
August 23, 2017, 02:34:46 PM
#3
Marketcap is determined by this equation: coins in circulation * price of coin = total marketcap

A common mistake while trying to calculate marketcap is looking at the total supply or max supply but that is incorrect. You must you the current amount in circulation as that

gives you the correct answer

Exactly, however if coins are distributed to the team or company and they are in their hands and not time-locked they should also be counted in.

If they are locked then you count them when they are released after a milestone is achieved for example.

So as long as they are distributed to the team and aren't specified as being time-locked then they should be counted in as circulated correct?
full member
Activity: 326
Merit: 104
Santa Coin
August 23, 2017, 12:26:01 AM
#2
Marketcap is determined by this equation: coins in circulation * price of coin = total marketcap

A common mistake while trying to calculate marketcap is looking at the total supply or max supply but that is incorrect. You must you the current amount in circulation as that

gives you the correct answer
newbie
Activity: 43
Merit: 0
August 22, 2017, 09:56:31 PM
#1
When I am looking at a white paper for an ICO how do you determine the market cap exactly? Does coin circulation only include tokens sold or does it include coins given to the development team and tokens set aside to pay for dev costs?
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