Topic: How initially a coin value is decided?????? (Read 549 times)
Before the ICO it is decided by the persons who created the coin, they can set whatever value they want and then people will either buy it or not. Once free market forces of supply and demand come in to play the price will go up or down depending.
I have a doubt how a coin value is decided before ICO or release?
The marketcap and the amount of coins that is being placed on an exchange is how the price is calculated.It is just all speculation. Most prices are determined just with supply and demand as well. Look for low caps and a great team/project to invest in. ICO's are too scary these days.
Speculating is a factor only, the rest is about the money that project collected and the latest news about it. Buyers and sellers on the market, when the coin hits the exchange for the first time, determine their positions according to these things.
The free market decides the price of the coin. Initially, the ones building the project themselves set a price so they can collect BTC/ETH during the token sale, but once it's released on the market it's up to the invisible hand to price it right.
It doesn't matter the age of a coin in the market, it's always a matter of supply and demand, even at the beginning.
The demand, in turn, will depend on marketing, development and usage.
The demand, in turn, will depend on marketing, development and usage.
The price will be discussed by the project team and given a specific number. From the total supply and fundraising amount that the project wants to achieve will give you the price of the coin.
The developers set the initial price during ICO,and after that the bounty hunters an investors will decide how much will it be,law of supply and demand.
the course is determined only speculatively
and nothing else
Although the attempt to set a course can be and the creators
but all the same everything will be decided at the entrance to the auction on the exchange
and nothing else
Although the attempt to set a course can be and the creators
but all the same everything will be decided at the entrance to the auction on the exchange
Its price is based on demand. If demand is definitely high, its low price is also low. We hold investors for the price of a single currency. What you should not do is sell it immediately because it affects the price of coins. That may fall and result in panic selling.
The balance is important. If you place for price 1$ for 10000 coins, it will be very washed out.
On the other side, price in 1$ for 1 token will lead to overconcentrated tokenholders. Who will be able to control the price.
For me, the rate 1$=1 token is the least viable.
On the other side, price in 1$ for 1 token will lead to overconcentrated tokenholders. Who will be able to control the price.
For me, the rate 1$=1 token is the least viable.
I am a little skeptical. There is definitely psychological differences between paying 1$ for 10000 coins or for 1 coin. But overall the concentration of tokenholders would be the same - everyone would control the same amount of value.. It seems 1$=1 is also somewhat arbitrarily established.
Initially it is whatever the ICO price is set for. by the devs.
Then the market takes over and price is established based on supply and demand.
I am curious though about the relationship between ICO price and the final market price. Will the ICO price have an impact on the market cap a few months or years down the line?
Then the market takes over and price is established based on supply and demand.
I am curious though about the relationship between ICO price and the final market price. Will the ICO price have an impact on the market cap a few months or years down the line?
I have a doubt how a coin value is decided before ICO or release?
The basic formula is the market supply versus how much the market demand is and willing to pay. These two things determine us a marketcap and that is how the value is determined through these basic principles.
The OP is asking on how the price is defined of a coin before the ICO and not afterwards . MarketCap and supply / demand factors are only for the coins which are listed on the exchnage. For the ICO ones, the dev himself set the price depending upon the coin supply and the projects which he has in his mind to promote the coin.
Too high a pirce at ICO will give very little investment and too low a price will make the coin useless. The price should be carefully determine in ICO so that if can retain its value after the ICO as well.
As said, initially the team sets up the value, distributes their tokens, coins gets circulated in the market and depending on their projects and the teams the captured. Demand arises when the project booms up. So more coins are created and the price goes up.
The initial price is decided by the team members themselves and they decide by the number of tokens they have created. Once the main sale is off, the trading starts and the the price when stabilized gives the actual value of the coin. It depends on the investors and bounty people, if they hold the coins then the price of the coin increases as the demand is more than the supply but if they dump the coins then the supply is more in the market and hence the price goes down.
BTX distribution model is novel ~let's use this as a textbook case study :-D //^to da mooonnnnn
https://www.cryptopia.co.nz/Exchange/?market=BTX_BTC
https://www.cryptopia.co.nz/Exchange/?market=BTX_BTC
He is talking about ico's, where there is no "real" demand before they set a price and start selling.
It's a complex and interesting question. It depends on the projects actually and be determined according to different factors. If you want take few minutes to read this article, you will have a clearer idea about it
https://www.cryptocompare.com/coins/guides/how-does-an-ico-work/
There is no way to determine the value of a coin, but it is like any other coin or currency where the people decide the value. The value is based on what people believe the value is and what they are willing to pay for it. Then you factor in supply vs demand and the market starts to decide what it's valued at depending on what people value it at. That's why BTC is worth so much.
I have a doubt how a coin value is decided before ICO or release?
Every project already made their own whitepaper, and that provides you the more technical explanation about the price of the coin itself. Some projects just put the actual price for each token just like eidoo. and there are some projects just try to determine the price after the crowdsale. that means the total raised funds will be divided with the total issued tokens. Both were the way to decide the price of the ico.
Usually the sum placed into crowfund tells the coin market cap. For instance, if the project collects 1BTC total, all the coins will be worth 1 BTC.
So 1000,000 Xcoins =1BTC
if 2BTC is raised, so 1000,000 Xcoins = 2BTC
So 1000,000 Xcoins =1BTC
if 2BTC is raised, so 1000,000 Xcoins = 2BTC
The balance is important. If you place for price 1$ for 10000 coins, it will be very washed out.
On the other side, price in 1$ for 1 token will lead to overconcentrated tokenholders. Who will be able to control the price.
For me, the rate 1$=1 token is the least viable.
On the other side, price in 1$ for 1 token will lead to overconcentrated tokenholders. Who will be able to control the price.
For me, the rate 1$=1 token is the least viable.
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