Topic: Lower circulating supply of tokens, It is good or bad? - page 2. (Read 524 times)
in my opinion, circulation coins will make a very weak turnaround coins were not smooth. This must be bad, because the fewer devotees. and it could be that will weaken the value of the exchange rate.
I myself prefer coins or tokens that have a fairly low supply and have a clear product
coins will have more value if it has demand with low supply circulating. so even if the coins have low supply circulating if it has no demand the value will still be low. so projects with high demand but low supply will likely increase its value because more will buy at a higher price.
Every buying and selling responds to demand and supply . So if the circulating supply of a coin is low , there is a tendency of such coin increasing in price because demand will be more than supply. But in crypto this law only works when the developing team is active and there is a meaningful product behind the project . Otherwise nomatter how small a valueless token is , it won't still sell .
That is good somehow because having a limited supply of coins in the market will increase the market value of its investments therefore the demands on this coin will definitely boom in future.
For me it is a positive action since you could already predict the target market of a coin or tokebln.Ofcourse this also dictated by the market strategist. It will surely be a good strategy in a long run.
The fact is like that and certainly attracts investors' attention so that the token is burned.
The fewer tokens there are, the more expensive the price, for example, only Bitcoin is only 21,000,000.
The fewer tokens there are, the more expensive the price, for example, only Bitcoin is only 21,000,000.
In the end it all comes down to market cap. The amount of coins really isn't that important. If the coin is undervalued or overvalued it will be seen in the market cap not the price nor amount of coins in circulation really matter. The price * amount of coins combined is all that matters.
For me, this logic is both meaningless and flawed. It is valid and reasonable to assume that only some part of the coin supply gets actually circulated, so if we thoroughly follow your logic through, any coin will be undervalued at any time unless all supply is circulating. If you calculate the market cap as the number of all coins multiplied by the current price and then divide the product by the number of actually traded coins (which is lower than the total supply), you will get the price which would be higher than the current. That means, according to your reasoning, that the coin in question is undervalued as its price should be higher.
Under these conditions, no coin can be overvalued.
In the end it all comes down to market cap. The amount of coins really isn't that important. If the coin is undervalued or overvalued it will be seen in the market cap not the price nor amount of coins in circulation really matter. The price * amount of coins combined is all that matters.
I always go with low supply tokens as I feel as though they have more explosive growth potential than the large float coins. SO far this strategy has worked out for me. Something about the large amounts of coins that turns me off. Now trying to buy 10 Bitcoin of a low supply coin has it's issues. I have taken weeks to get into a position. Unloading is also a task.
Burning their excess altcoin during ICO might increase the demand for their token/coin someday specially if they will be stronger than those altcoin in top 10 at coinmarketcap. The lower the stocks, the higher the demand specially if they are that popular right? Business is business and i might say that it will be similar to buying an item online. Besides, if you are a buyer and you know that they have thousands left in stock, the eagerness to grab that item is not that high and think of another choices that will give you more satisfaction.
If the project will succeed then yes, the value is more valuable after some time, the higher the demands the higher the value if we will follow the rules of supply and demand, we can make Bitcoin as an example as we knew that there's only numbers of Bitcoin that will going to exist, after that if more adoptions will happen then we can assume that Bitcoin will be a fortune if we will hold it as an assets that will be store for maybe 5-10 years from now.
Burning their excess altcoin during ICO might increase the demand for their token/coin someday specially if they will be stronger than those altcoin in top 10 at coinmarketcap. The lower the stocks, the higher the demand specially if they are that popular right? Business is business and i might say that it will be similar to buying an item online. Besides, if you are a buyer and you know that they have thousands left in stock, the eagerness to grab that item is not that high and think of another choices that will give you more satisfaction.
You must adjust to the existing market conditions. The condition of the ICO faces so many problems even though the truth is also being neglected for the broad promotion because many projects in the ICO are Scam. Also lowered tokens may occur because they do not get investors who will wait for the project to succeed because the ICO is increasingly no longer trusted by investors. If you want to go into the ICO Project, those who expect greater profits also take big risks too later.
I think that everything is exactly as you said. In fact, now there are a lot of projects that hardly reach the hard cap
Any lower circulation coin supposed to be an advantage to to the in issue. Reason being that, the coin will be able to finished in time and more so, the market price will be able to determined.
If the token price is low and also the supply with a promising project that will be soon launched and surely to have the benefit.
it will be a big bang in the near future and i would love to keep some of the tokens.
But if the supply is low due to burned unsold tokens and the ICO was not successful like what happened to NIMFA it will be a problem i the long run.
it has no value now.
it will be a big bang in the near future and i would love to keep some of the tokens.
But if the supply is low due to burned unsold tokens and the ICO was not successful like what happened to NIMFA it will be a problem i the long run.
it has no value now.
The circulating and total supply of a coin is a very powerful indicator as to a coins potential. Let's look at why getting in early on a low supply can be a gold mine. Take for example a coin with 1 billion supply and a valuation of 5 million. Now let's say coin surged for whatever reason and is now worth 10 million total market cap, each coin would be worth 10$.Now take that same scenario with a coin that has 1 million total supply. At 5 million valuation each coin is worth 5$. If 10 billion is thrown into it, each coin is now worth 10,000.That's the power of getting in early on a coin with supply.
It seems you are making a few very loose assumptions which are unlikely to happen in real life. First of all, you assume that the price of a coin surges 2 times for some obscure reason. Basically, you just postulate that its price rose 2 times. But for what reason exactly? Why not suggest its growth on the order of 1000 times then? Further, if a coin has 1 billion supply and a market cap of 5 million, its price would be 5M/1B=0.005$. Then you assume that 1B dollars is thrown into a coin with a total supply of 1 million and a market cap of 5M, but this is yet another arbitrary assumption as the first one. I can just as arbitrarily claim that if 1000 billion dollars is poured into the second coin, its growth will be the same.
But these are all baseless assumptions like if wishes were horses beggars might ride. In a nutshell, it is not about a coin's potential, it is just you fiddling with the numbers.
Low supply of coins with high demand will really make the price go up. On the contrary, if the demand was still low even if the supply was low, the result will be a low price. A lot of ICO's are trying to lock some coins from bounty and team member to have a low circulating supply. This is a 50-50 bet in my opinion and this does not guarantee the success of the coin. This is only a short term solution for the coin value.
personally I prefer ico with a lot of tokens. I think no matter how much the results will be gained, if the supply of tokens is big, we will also get the great results. that's the logic. but we also have to be smart to choose ico that good so that the results are more satisfying. it all depends on the logic of each person.
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