Topic: Gigantic max supply is bad (Read 426 times)
The supply of a coin has a huge impact on the value. This is because the value of the tokens is a division of the market capitalisation and the total number of tokens. This explains why projects with low supply tend to have a better chance for increased value as compared with projects with high supply.
Having billions of supply with eventually affect the performance of the market trading, for example Doge, which has billions of supply, but the case is, its really hard to achieve 1usd in value each coin because of the supply, its just a matter of supply and demand i think, the lower the supply the better the chances of price surge.
I don't think gigantic maximum supply is bad considering the fact that there could be a need for enormous supply. Some projects needs the high supply volume to meet with the demand of the market, even though the reduced supply is best to have a increased tokens value
More important thing is a trading volume. If the trading volume is low, then you may not be able to sell your coin and that is probably the most woest thing what could happen. 
Apart from real use case do coins and tokens max supply counts as well? for example lets look at doge coin,its max supply is 280 billion and the circulating supply is 120billion which is presently trading at 0.0026$ what would have happened if its max supply is in millions ?
i think some coins have way to much max supply which actually affects the coin or token performance as well,coins with low supply will always have better value than having gigantic supply.
i think some coins have way to much max supply which actually affects the coin or token performance as well,coins with low supply will always have better value than having gigantic supply.
I do not see the difference between the maximum supply of coins and how much it is expressed. The main thing here is how much the price of this coin is growing. For example, you bought 1 million coins of XXX for 1000 dollars, and for the same thousand dollars you bought 1 thousand coins of UUU. Coin XXX over time has grown by 100 percent and you can sell your one million for $ 2,000, and the UUU coin stands still and you can sell it at the same price you bought.
A good point, But people have no need to be care about the max supply It will give benefit about few of projects not for the all. Doge does not have the maximum cap and while the single is quite worthless. Basically it is true the gigantic cap is a problem.
Apart from real use case do coins and tokens max supply counts as well? for example lets look at doge coin,its max supply is 280 billion and the circulating supply is 120billion which is presently trading at 0.0026$ what would have happened if its max supply is in millions ?
i think some coins have way to much max supply which actually affects the coin or token performance as well,coins with low supply will always have better value than having gigantic supply.
These are the projects that claim to have a better solution to bitcoin, and they don’t know the main reason why bitcoin created a limited supply and this limited supply of bitcoin is what has been helping it till date. Look at ripple, with all their position on the 3rd place in the market, their value is still not growing, and this is because they have such unlimited supply. i think some coins have way to much max supply which actually affects the coin or token performance as well,coins with low supply will always have better value than having gigantic supply.
Take a look at binance, binance also applied this method, to burn tokens, and we can see its working with the real products that they have. So all this gigantic supply is really not worth it. What majority of these people needs is actually to burn those tokens and see how the coin will start to appreciate seriously and how stable the coin will also be on a very high price. When I see some project which such big supply, what I do is just to ignore them immediately.
Lol, who would wanted to see huge max supply? It doesn't make sense for a project to see billion coins in circulation. It goes against the basic tenant of crypto, specially what bitcoin has established, fixed 21 million supply only. So this billion max supply is a recipe for disaster, as the price won't go that high and it going to be used for pump-and-dump scheme. Low supply cap has the potential to go high in the future, just saying.
There are two sides of the same coin. If you look at stellar or ripple, they have very big total supplies and are doing pretty well, if you compare their prices with all time lows. But on the other hand, I agree with you and believe that projects with small total supplies are more perspective.
In my opinion, this is due to how much the project covers the Earth’s population, that is, how grandiose the project itself is. The more often a coin or token is used, the more they are needed. If there are not so many coins or tokens, perhaps this will cause them to rise in price, however, at the same time it will cause inconvenience in their practical use. Nevertheless, an optimal balance is needed here. Apart from real use case do coins and tokens max supply counts as well? for example lets look at doge coin,its max supply is 280 billion and the circulating supply is 120billion which is presently trading at 0.0026$ what would have happened if its max supply is in millions ?
i think some coins have way to much max supply which actually affects the coin or token performance as well,coins with low supply will always have better value than having gigantic supply.
i think some coins have way to much max supply which actually affects the coin or token performance as well,coins with low supply will always have better value than having gigantic supply.
Maximum supply is not the problem but the fixed coin supply inflation. I believe a 10% annual increase in coin supply is already too big to absorb very few adopters. For example, 1,000,000 coins getting additional 100,000 a year or 8,333 coins a month - that is too much IMO.
Maybe 1% per year is better.
I love coins with large max supplies, I definitely prefer it to those with little max supplies especially in a bear market, when those with max supply wants to.dip, they do not go too far because their price is low to begin with but those with little supply whose price are high tend to disappoint so.much in the long run, anyways that's my personal opinion.
I am really not a fan of gigantic supply. But some project with heavy supply and with regular usage is not really a bad idea since everything is not always about price and going to the moon. But I have issues with project creating heavy supply and later carrying out monthly burn in other to keep the community hope alive without any clear innovation.
Apart from real use case do coins and tokens max supply counts as well? for example lets look at doge coin,its max supply is 280 billion and the circulating supply is 120billion which is presently trading at 0.0026$ what would have happened if its max supply is in millions ?
i think some coins have way to much max supply which actually affects the coin or token performance as well,coins with low supply will always have better value than having gigantic supply.
IMHO! I think your right, Huge circulation can affect the price of the coin/token compare to some millions only.Specially when the platform has no established use case to create demand. While comparing Dogecoin we all know that this coin was almost 5 years old already and because of that many cryptocurrency enthusiast or holders/investors are often using it. i think some coins have way to much max supply which actually affects the coin or token performance as well,coins with low supply will always have better value than having gigantic supply.
When I started crypto trading I think like you but by the experience my opinion has been changed. I believe supply does not matter in this market even you can see some high supply coins in Top 50 of CMC on the other hand there are some less supply coins also worth of just pennies. The important thing is how dev promote its project or how actively he/she is working on his/her project from backend. Supporting community also plays major role in success of a project. Worthless coins will remain worthless whether it has huge supply or less supply.
I am more likely to choose a coin with a small amount of supply, because the value will be better than the large supply, but not just holding, we will also see their project. For the security of our assets
I agree that huge number of supply is bad that is why some of the coins like Binance Coin are doing halving where they will halve the maximum supply of the coin. This helps to the increase of the price since the supply is decreasing. Higher demand and Lower supply means price increase. I don't want to invest into coins that have huge number of supply unless it is on the top 10 like ADA or XLM like that.
Apart from real use case do coins and tokens max supply counts as well? for example lets look at doge coin,its max supply is 280 billion and the circulating supply is 120billion which is presently trading at 0.0026$ what would have happened if its max supply is in millions ?
i think some coins have way to much max supply which actually affects the coin or token performance as well,coins with low supply will always have better value than having gigantic supply.
If dogecoin maximum supply is in millions/billions, the price will still be determined by demand and supply. What counts in this case is the percentage price gains/loses in a given period of time. Value (= inflow and out flow of financial & non-financial investments (or both) into a coin) will largely determine percentage price gains/loses of the coin in a period of time. i think some coins have way to much max supply which actually affects the coin or token performance as well,coins with low supply will always have better value than having gigantic supply.
Guess you mean (at the bolded part) "higher price" and not better value. Value is quite different from price.
Do not care about the total supply, you should watch about the market cappitalization (it is calculated from token supply * price). For example Ethereum and Ripple has almost same market cappitalization, but Ethereum is 1000x more expensive than Ripple because Ripple circulating supply is 1000times higher than Ethereum. As you can see it is not an important information. But when you choose coins by market cap, you can find some that are undervalued. (Highly used but low market cap = potential high return).
Max Supply is not bad if they decide something like annually burning of their coins it will help the price increase at some point or any better idea than that. Aside from burning, they can just simply make their max supply as small as possible when they first create those coins or tokens because we saw today having huge max supply is not good and the consequences the price of the coins are having a hard time to increase the price.
maximum inventory will not influence many people to buy it, people will be interested in the price of the coin. if you want to invest with coins, make sure that the coins have good price growth.
Jump to: