Topic: Good trading volume doesn't mean a token is good - page 8. (Read 889 times)
Yes, tokens that have good trading volumes are sometimes bad or not that promising when it comes to their product or technology. It's like an exchange with high volume, it doesn't mean it is good or reliable enough. Take a look at Yobit. Full of shitcoins yet volume is still there, including its shitcoins. Good marketing creates hype and in hype there's money. Even in our daily life. Popular products with most sales are not guarantees for quality.
Behold good trading volume doesn't mean a coin or token is good, i read in a thread where few people are saying if a coin has no volume means its a bad coin, well here we go, bad coins can have huuuge volume, you must have heard of bomb token? bomb token has good trading volume but guess what? it has no real use case, the volume comes from HYPE because its a deflationary tokens, people believed that the more a max supply of a token get decreased or burned off over time means they are GOLD tokens, it does bring profits to early adopters like they say but NO REAL USE CASES.
Use case is important if a coin is traded with a good volume without it, then it's just purely hype and manipulation in the market. Dont get shocked with it, cause everyday many tokens has pump and different coins. Market is also being played by huge traders who have deep pocket. So If I were you, stay on a platform or token that has a good performance based on use case not on trading.
I'd still prefer those coins with good daily volumes though. I mean if they are attracting investors to trade their coin, then that would say they are still healthy and kicking. Most of the coins/tokens doesn't have any real use case anyway, they are just their to make hype and profit.
It's just a matter of where they are listed. Good coins are listed in good exchanges like Binance or Kucoin while bad coins are listed in unknown exchanges.
It's just a matter of where they are listed. Good coins are listed in good exchanges like Binance or Kucoin while bad coins are listed in unknown exchanges.
It is good for traders and those who are making money out of them. Some traders do not care at all about whether the token is fundamentally good or bad. If they can see an opportunity to make money out of these kinds of coins, they will trade it. But to those who are buying for the sake of long term investment, these kinds of coins are really bad. They should not be bought for such investments as the risks are too high.
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Project like bitconnect which was a obvious Ponzi scheme projects had massive trading volume and at some point in 2017 was among the top 10-15 highest trading coin on coinmarketcap in regarda to market capitalization. After from this scenario, trading volume on Coinmarketcap can't be rely on, as it can be easily manipulate by the exchanges most especially the small ones.
Judging the credibility or legitimacy of a project should go beyond such projects been privilege to be listed on an exchanges whether small or top exchanges not forgetting this exchanges can list any tokens without considering the welfare if their customers, providing the listing fees are been met by this projects.
Judging the credibility or legitimacy of a project should go beyond such projects been privilege to be listed on an exchanges whether small or top exchanges not forgetting this exchanges can list any tokens without considering the welfare if their customers, providing the listing fees are been met by this projects.
Yes, I totally agree. People are starting to think that volume determines whether or not a scam is because they want to find profits quickly. And when he doesn't see it on a project, they say it's a scam. Everything is money talking now. If this happens, then the PnD coin is also determined as a good coin, although only temporarily. Even though it was the developer update that really determined the project was a scam or not.
Behold good trading volume doesn't mean a coin or token is good, i read in a thread where few people are saying if a coin has no volume means its a bad coin, well here we go, bad coins can have huuuge volume, you must have heard of bomb token? bomb token has good trading volume but guess what? it has no real use case, the volume comes from HYPE because its a deflationary tokens, people believed that the more a max supply of a token get decreased or burned off over time means they are GOLD tokens, it does bring profits to early adopters like they say but NO REAL USE CASES.
Maybe with higher volume transaction can give us safety with coin not scam where have many buy and sell order, how come found coins less buy order when some one sell with higher amount will make price down, I agree when higher volume transaction not give guarantee altcoin become profitable and higher price because there are many altcoin kind on Binance exchange keep lower price although have thousand billion volume transaction.
I don't think so, Only good propjects has good a trading volume now which is listed on good exchanges that built trust to the community. Suspicious and bad projects dont even have a decent volume, often they are listed on sh*t exchange and generate a fake volume.
Trader no matter the problem like this. They see if many volumes make it easy for them to trade and take profit, not that the tokens or coins are good.
That's the main reason why traders want good enough volume for a token/coin. Making profit will be more easy because trade takes place in a short time, so it doesn't need long time to get a profit, then they can rotate it again and again. 
Trader no matter the problem like this. They see if many volumes make it easy for them to trade and take profit, not that the tokens or coins are good.
If the token or a good coin has no volume of traders will worry about choosing them because it will be difficult to get the price movement if the volume is quiet.
If the token or a good coin has no volume of traders will worry about choosing them because it will be difficult to get the price movement if the volume is quiet.
Even the weighted volume and/or 'adjusted volume' you see on a lot of sites like Coinmarketcap or Coingecko isn't always correct, and there's really no way to know the true volume of any exchange nowadays because of all the different ways exchanges boost their volume. Some sites like Coingecko also provide an easy way to look at market depth to weed out some exchanges that obviously fake volume, but I suspect some exchanges also make their books look legit too.
That explanation is on point. I used to say that if the coin doesn't have volume avoid it but I've never say that coins that have good volume are all good. I think the basis that I've said that because of the comparison with the old coins that has no more good volumes.
people believed that the more a max supply of a token get decreased or burned off over time means they are GOLD tokens
What investors believe is that whenever there's an event of burning, it will make the prices up and that's why there will be a fomo on that side. But be very careful because it wouldn't hold long. 
this is just another opportunity to catch new investors into their scam projects. they talk about burning tokens, etc. but in fact they do nothing except continue to raise money. in the end, such projects usually just disappear with all the money and with their stories about the bright future thanks to their tokenomics
i read in a thread where few people are saying if a coin has no volume means its a bad coin
That *is* true. There are shit coins on crap exchanges with zero or very low trading volume, and it is a good indicator that it isn't a good investment. A coin or token with low volume basically means that you'll have a hard time selling it because there's not really a market for it.As regards high volume, I'd be careful about the numbers you see, since there is talk that trading volume on certain exchanges can be and is faked. I'm not sure how you can tell the difference, but everyone should be avoiding crap coins and tokens anyhow.
I have started picking only tokens with real use cases
Yeah? I'd like to hear of *one*. I have yet to see a token that's used for a real life problem. 
Behold good trading volume doesn't mean a coin or token is good, i read in a thread where few people are saying if a coin has no volume means its a bad coin, well here we go, bad coins can have huuuge volume, you must have heard of bomb token? bomb token has good trading volume but guess what? it has no real use case, the volume comes from HYPE because its a deflationary tokens, people believed that the more a max supply of a token get decreased or burned off over time means they are GOLD tokens, it does bring profits to early adopters like they say but NO REAL USE CASES.
Volume is an indication of demand. On the market there are thousands of coins similar to what you say, but not all like BOMB. Good coins generally have a higher volume. Being good increases the demand, which means higher volume. Sometimes there are opposite situations, but there is a reason for these: for example, not being recognized by the majority. 
The demand for token use case came after the dump, it is discovered to be important for altcoins especially. Sustainable Volume will always be significant for token that wants to thrive in this space but exchange where it is traded will also be as important. projects with no used case will naturally die in this market when projects with use case generate volume that drive its price.
The pump and dump schemes, and manipulation of trading are false and fake factors showing wrong details to the traders sometimes, but the good thing is that these manipulations are always temporary and you can't control the volume of trading forever.
So, it is better to study the project itself first before studying its trading volume.
So, it is better to study the project itself first before studying its trading volume.
I have started picking only tokens with real use cases just because fake hype based projects without any real use cases do not tend to last long, also the real projects with meaningful platform and services may fail to attract customers but in that case you will not regret that you made a bad investment. Afterall luck matters a lot too.
Behold good trading volume doesn't mean a coin or token is good, i read in a thread where few people are saying if a coin has no volume means its a bad coin, well here we go, bad coins can have huuuge volume, you must have heard of bomb token? bomb token has good trading volume but guess what? it has no real use case, the volume comes from HYPE because its a deflationary tokens, people believed that the more a max supply of a token get decreased or burned off over time means they are GOLD tokens, it does bring profits to early adopters like they say but NO REAL USE CASES.
I think you are twisting the point here, which one do you want to be holding, a token with decent trading volume or the ones with low or no trading volume. The poin tis that most scam projects do not have volume for you to get in and out of them, that is why this is very important, you need to be able to move your money around the way you want
Though you are right but I can't agree with your example. BOMB is enough good token, though it has no real use case, then tell me how many coins have real use cases? BOMB is still a kid token in this large crypto community, they are here only for 4-5months, then how can you imagine it would have real use case within this short time?? if you follow the BOMB token telegram, you will know they are such a talented guy live there! I have no BOMB token, never bought it, but I know this is not a bad token.
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