Hypothetical: $10m ICO with 1m $10 tokens, or $10m ICO with 1b $0.01 tokens?

kaopxa

newbie

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Quote from: BitcoinTurk on October 03, 2018, 11:05:36 AM

This decision will of course vary depending on the projects, but keeping the amount of supply lower will provide a better price-based advantage. Although the margin of profit seems to be more attractive to be preferred, the lower supply balance should be chosen for a price-based advantage. In particular, the fact that new projects are generally preferred to sell more than a billion units is an indication that the price will not reach a certain level. Therefore, my personal preference would be to choose a low supply option.

I agree. There is a lot less distance from $0.01 to $0.00 than $1.00.

iconoclast

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Matrix Built On An Ethereum Smart Contract

It really should not matter but as others have already said there area lot of newbie investors who think a lower price means a greater chance of the coin rising multiple times because they mistakenly believe the "Law of Small Numbers" that applies to stock market investing also applies to cryptocurrency markets. What they fail to grasp is things like Board Lots are of no importance and that unlike shares cryptocurrencies are divisible to multiple decimal places.

BitcoinTurk

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This decision will of course vary depending on the projects, but keeping the amount of supply lower will provide a better price-based advantage. Although the margin of profit seems to be more attractive to be preferred, the lower supply balance should be chosen for a price-based advantage. In particular, the fact that new projects are generally preferred to sell more than a billion units is an indication that the price will not reach a certain level. Therefore, my personal preference would be to choose a low supply option.

bttmember

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AMEPAY

I will not go and post the figures but personally i follow this simple strategy, the lower the total supply the better and similarly the lower the price the better. I hope you will.get my point.

satgoldan

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I agree, it is rather a psychological effect. People want to see more coins in their accounts. Growth from $ 0.1 to $ 1 looks much more interesting than from $ 10 to $ 100. In other cases, this price is due to the equivalent of something, such as a kilowatt of energy, I have met such tokens.

itssawai

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Look ARROUND!

Crypto market is still not matured enough and lots of newbies purchase cheaper coins in bulk thinking it will become 5x-10x etc, even though both the coins you have mentioned, has the same marketcap but the cheaper coin will attract more newbies and $10 one will attract more serious investors. On hitting market, you can play pump and dump with cheaper coins and hold the serious coins as a long-term investment.

malweyer

newbie

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Quote from: muncuss on September 30, 2018, 06:48:18 AM

Quote from: o_e_l_e_o on September 30, 2018, 04:01:51 AM

You are correct the marketcap is the same, but it will make a difference.

You can find multiple new threads every day on these forums from newbies that don't understand marketcap, talking about how "penny coins" are cheap because the price is so low, completely oblivious to the billions of coins/tokens there in circulation. If you launched an ICO charging $10 for a token, a lot of newbies would say it's overpriced, regardless of marketcap or circulation.

And the use case of the token has never matter in ICOs before - morons will throw their money at anything with a nice website, even if it is a complete ponzi piece of trash scam.

yes ppl will prefer to buy cheaper token, no matter how scam the project, coz ppl already saw many get 7-10x profit with that kind of token.
fact is fact, those cheap tokens have higher chance to give you lambo in short time than top 10 coin/tokens

psychologically easier to buy 1,000 $0.01 coins than 10 $1.00 ones. i think retail investors prefer that

Noobaru

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I would personally prefer the $0.01 just from the psychological aspect. Most project have their tokens sold in the range from 0.01$ to 1$ I believe, which is still a huge gap. I think that a perfect price for a token is at 0.10$ with no special reasons. Grin

muncuss

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Quote from: o_e_l_e_o on September 30, 2018, 04:01:51 AM

You are correct the marketcap is the same, but it will make a difference.

You can find multiple new threads every day on these forums from newbies that don't understand marketcap, talking about how "penny coins" are cheap because the price is so low, completely oblivious to the billions of coins/tokens there in circulation. If you launched an ICO charging $10 for a token, a lot of newbies would say it's overpriced, regardless of marketcap or circulation.

And the use case of the token has never matter in ICOs before - morons will throw their money at anything with a nice website, even if it is a complete ponzi piece of trash scam.

yes ppl will prefer to buy cheaper token, no matter how scam the project, coz ppl already saw many get 7-10x profit with that kind of token.
fact is fact, those cheap tokens have higher chance to give you lambo in short time than top 10 coin/tokens

o_e_l_e_o

legendary

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Quote from: CryptoAlphaStar on September 29, 2018, 05:12:09 PM

It doesn't make any difference. The marketcap won't be affected at all.

You are correct the marketcap is the same, but it will make a difference.

You can find multiple new threads every day on these forums from newbies that don't understand marketcap, talking about how "penny coins" are cheap because the price is so low, completely oblivious to the billions of coins/tokens there in circulation. If you launched an ICO charging $10 for a token, a lot of newbies would say it's overpriced, regardless of marketcap or circulation.

And the use case of the token has never matter in ICOs before - morons will throw their money at anything with a nice website, even if it is a complete ponzi piece of trash scam.

CryptoAlphaStar

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It doesn't make any difference. The marketcap won't be affected at all.
And it doesn't matter what we prefer. What matters is what will the use case of the token be and this will determine how many decimal points it needs for good user experience.
The ICO team decides this.

kaopxa

newbie

Activity: 40

Merit: 0

Which would you prefer and why?

Topic: Hypothetical: $10m ICO with 1m $10 tokens, or $10m ICO with 1b $0.01 tokens? (Read 137 times)