how does coin price UP & DOWN @ pancakeswap?

AbuBhakar

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Quote from: nshadab on March 23, 2022, 02:03:01 AM

Let's say there is a coin listed on pancakeswap and not listed elsewhere. Users keep on sell and purchase the coin..

So i am curious to know; how does the price go UP & DOWN because now the coin is on DEX only...

on CEX the price goes UP & DOWN; totally depends upon demand & supply... but how this thing work on DEX?

There’s a market maker both setup by the team to fake there volume or simply create a price support for the project. The usually setup this bot during the initial listing to create volume and transactions to comply to the requirements of coinmarketcap and coingecko for there token listing. Aside from that, there’s a lot of user using a snipe bot that consistently buying and selling whenever the price increase or decrease a certain percentage. Besides that, all transactions is organic from FOMO buyers and Take profit sellers.

hugeblack

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The principle is one. There is a basin that determines liquidity and orders that determine supply and demand based on another currency. For example, the trading pair will be that currency and Ethereum.

Ethereum has value, and therefore whoever wants to increase the price of the currency will need to pay money in the currency of Ether, and therefore the people who have that currency can sell it and make a profit.
What will happen is that the price of the currency will be very variable as a simple amount like half a million dollars can cause the currency to rise by more than 1000%.

you can learn about it here ---> https://academy.shrimpy.io/post/what-is-pancakeswap.

WalkerIVIV

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DEX is working similarly with centralized exchange site but the thing makes it different is you need to call the contract once you wanna doing a trade in the blockchain, i meant since dex was totally decentralized and then you need mnually to trade it through calling the contract to swap your tokens to the another token that you are willing to own it. DEX is also based on demand and supply and there's no difference.
I think that it doesn't matter if it's cex or dex and volatility will always there. The demand and supply play the important role in this case.

rhomelmabini

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Quote from: nshadab on March 23, 2022, 02:03:01 AM

Let's say there is a coin listed on pancakeswap and not listed elsewhere. Users keep on sell and purchase the coin..

So i am curious to know; how does the price go UP & DOWN because now the coin is on DEX only...

on CEX the price goes UP & DOWN; totally depends upon demand & supply... but how this thing work on DEX?

Since Pancakeswap is an AMM kind of DEX you can check this YouTube video for a simple explanation on how it works: https://youtu.be/r0UmEy9i6wQ. If you do a slight research you'll be able to grasp how it was being possible by the use of smart contracts, all of it are possible because of that.

fuguebtc

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Quote from: nshadab on March 23, 2022, 02:03:01 AM

Let's say there is a coin listed on pancakeswap and not listed elsewhere. Users keep on sell and purchase the coin..

So i am curious to know; how does the price go UP & DOWN because now the coin is on DEX only...

on CEX the price goes UP & DOWN; totally depends upon demand & supply... but how this thing work on DEX?

There will be a slight difference here. In addition to the exchange based on buying and selling, when we trade on the DEX there is an additional liquidity pool. This means that it doesn't require you to place buy or sell orders and wait for someone else to do so to match orders like the CEX exchange. You just need to order your token and the token is in the liquidity pool using user provided liquidity and the transaction will be done through smart contracts.

Yogee

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I'm with makishart that you better read on liquidity pools and AMM.

Quote from: robattfield on March 23, 2022, 05:12:43 AM

Maybe the OP is confusing the concepts of DEX and CEX. The rise or fall of a project depends on many things, not only exchanges. It can completely grow if the project is really good or just a hoax on the BSC network, increasing or decreasing depending on the selling and buying needs of the participants.

He's still unfamiliar but I don't think he's confused. He's trying to know the difference between an open order book like what you see on CEX which allows buyers or sellers to set their own price and an automated market maker that DEX like Pancakeswap uses.

TastyChillySauce00

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I think that pancake swap has the same mechanism like the centralized exchange site. I should remind you that swap service is also using demand and supply as the way to make the price of token to go up and down.
Remember that when the hype was so big and this will give very big impact to the liquidity. In another way. When people are feeling bearish and they will be massively taking their liquidity and this will make the price to go down a lot. Basically, CEX and DEX were the same. The only thing that make both different will be the mechanism but so far.
Im not seeing any difference between both.

TravelMug

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Quote from: nshadab on March 23, 2022, 02:03:01 AM

Let's say there is a coin listed on pancakeswap and not listed elsewhere. Users keep on sell and purchase the coin..

So i am curious to know; how does the price go UP & DOWN because now the coin is on DEX only...

on CEX the price goes UP & DOWN; totally depends upon demand & supply... but how this thing work on DEX?

The same I guess, if there is a huge demand because of the hype then definitely it will go up.

And the opposite happen, it investors doesn't find this coin to be profitable then they won't buy it.

That's why it's important to follow each coin specially those that you think that make a good run because of the hype. And if by chance you have them and they are listed in a good exchange, chances are the price will go up.

makishart

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Quote from: nshadab on March 23, 2022, 02:03:01 AM

Let's say there is a coin listed on pancakeswap and not listed elsewhere. Users keep on sell and purchase the coin..

So i am curious to know; how does the price go UP & DOWN because now the coin is on DEX only...

It was using pooled token mechanism. It's a bit different compared with the centralized system. This caused by when someone was adding more liquidity by buying the tokens that already pooled and this will increase the price and otherwise people who swap their tokens for native tokens that already paired will make the price to go down.

Quote from: nshadab on March 23, 2022, 02:03:01 AM

on CEX the price goes UP & DOWN; totally depends upon demand & supply... but how this thing work on DEX?

You can try to read some articles and you will be explained so well about that. I meant about the liquidity pool. the dex was using this mechanism and this is not the same like when you are trading on the centralized exchange site.

robattfield

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Maybe the OP is confusing the concepts of DEX and CEX. The rise or fall of a project depends on many things, not only exchanges. It can completely grow if the project is really good or just a hoax on the BSC network, increasing or decreasing depending on the selling and buying needs of the participants.

Findingnemo

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Quote from: nshadab on March 23, 2022, 02:03:01 AM

Let's say there is a coin listed on pancakeswap and not listed elsewhere. Users keep on sell and purchase the coin..

So i am curious to know; how does the price go UP & DOWN because now the coin is on DEX only...

on CEX the price goes UP & DOWN; totally depends upon demand & supply... but how this thing work on DEX?

Here also the same, when sell and buy order matches the price on point the trade will be executed but the people who are making trade orders decides the price, even if they can put $1000 for a coin which has no value at all but the thing is that order will never be executed.

nshadab

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Let's say there is a coin listed on pancakeswap and not listed elsewhere. Users keep on sell and purchase the coin..

So i am curious to know; how does the price go UP & DOWN because now the coin is on DEX only...

on CEX the price goes UP & DOWN; totally depends upon demand & supply... but how this thing work on DEX?

Topic: how does coin price UP & DOWN @ pancakeswap? (Read 83 times)