Topic: VERITASEUM DISCUSSION THREAD - page 115. (Read 251011 times)

And from the same faq by coinmarketcap.com...

Why is the Circulating Supply used in determining the market capitalization instead of Total Supply?

We've found that Circulating Supply is a much better metric for determining the market capitalization. Coins that are locked, reserved, or not able to be sold on the public market are coins that can't affect the price and thus should not be allowed to affect the market capitalization as well. The method of using the Circulating Supply is analogous to the method of using public float for determining the market capitalization of companies in traditional investing.

Refer here https://coinmarketcap.com/faq/

What is "Market Capitalization" and how is it calculated?

Market Capitalization is one way to rank the relative size of a cryptocurrency. It's calculated by multiplying the Price by the Circulating Supply.

Market Cap = Price X Circulating Supply.


Nope, Reggie didn't design such formula.

Ok. Comical interlude over.

I apologise for winding you up @paulmaritz. I should not have done that as it isn't my intention to use these posts to make people feel uncomfortable.

But lets take stock as to who is the real troll here.

I have been contributing considered opinion, often accompanied by some reasonable argument and the odd bit of anecdotal illustration and calculation. I've done so in good faith because having traded these markets for 4 years you observe certain things that are blatantly obvious market movers. I've also been careful not to use the "s" word, nor have I dismissed this token's fundamentals, which I believe to be sound, and nor have I "ad hominem'd" anybody as far as I'm aware.

What have you contributed of illuminating value ? You posted that coinmarketcom quote which was useful - I hadn't seen that. Apart form that, a large amount of handwaving and pictures of trolls.

So maybe a truce would be fruitful plus a more constructive appraisal of the matter at hand.

The issue as I see it is that when you have a single holder with a large amount of asset to sell in an illiquid market you need some kind of market leader to act as a price discovery mechanism so you can go and negotiate with 'large buyers' and make so called 'institutional sales'. (Which are not actually institutional at all since there are no institutions regulating them, they're just sales).

That was the role of the ICO and subsequent market rise on tiny volume.

What will happen now is that OTC (over the counter) sales will be made at significantly discounted token-to-coin exchange rates and large volumes which come from outside the published coin supply but which effectively qualify as 'circulating supply' since the tokens have now been distributed. This is great for large investors but for small investors there is considerably more risk from 2 sources:

1. a step change in published supply invoking a large and abrupt correction to the downside in token exchange rate to compensate for marketcap growth

2. an arbitrage driven correction between OTC and Exchange markets

I'm not necessarily saying that this will happen, I'm just pointing out that this risk is carried disproportionally by the small investor because:

 • they do not gain from the liquidity increase (as the ICO issuer does)
 • they do not gain from the OTC discount (as the 'institutional buyer' does)

Sure, it may all work out and as has been pointed out, some other assets do this to a limited extent. But the ratio of published to unpublished supply in this case is absolutely monumental (which is why I suggested the policy of marketcap reporting is being 'gamed') and its something that no investor has control over. Their interests do depend on things staying that way as far as I can see.


Because Litecoin is a mined coin. The 84,000,000 don't currently exist whereas the 100,000,000 VERI do, are currently in a wallet and ready to be sold at the holder's whim. There's no "2 Million liquid supply" and "98 million illiquid supply". There's just a 100 Million token wallet with a single holder.

Paul...2 questions sir..

1.  Can you currently rent out the VERI tokens now?  If so, where can I go to do this? If not, when will this be available?
2.  So the VERI tokens are only to access the machines for information...what if I don't want to access the machines?  Can I just hold and sell them and become a millionaire one day when they are valued at a very high price?

WOOOHOOOOOOOOOOO> GO VERITASEUM!!!!! Trains don't stop for TROLLS!!!!!! LILLLLLLLLLLLL

https://www.youtube.com/watch?v=cBVeNQ-mtcY

Toknormal...your complaining about the fact the 98% aren't included in the circulating supply.. if that's the case then why don't all the coins listed on coinmarketcap read the same as VERI?  Litecoin has 84,000,000 million coins but they are currently only at 51,000,000 million...why are you not calling LTC a scam or XRP, or BTC or any others for that matter?

Their totals don't reflect the total supply but your making a big deal about VERI...why?

I feel a disturbance in "the force".

Hopefully the ducks didn't notice it

I don't think he was defending me. He took your side in principle.

Keep your ducks dry for now.

When you come here defending the likes of toknormal, I honestly don't care how bullish you are. It is like water off a duck's back to me.

Behave Here's an article I wrote heavily referencing Veritaseum in November 2015 and I remain as bullish as ever, I try and see things from all angles is all, anyway I'm off out to look for some clues
http://backbit.co.uk/?page_id=159

I will rather watch this than having to put up with the tripe posted by toknormal and his troll buddies, those who continue to call Veritaseum a scam, etc.: https://youtu.be/n8PYozPB-8I

"I think blocking and cheaply labelling toknormal a troll as others on the thread have is a bit much."

I am sorry to say, but you don't have a clue!

I don't really know whether it did or didn't. But that "formula" is what's forming the basis of its current value (combined with a bit of help from him.."you don't know what you got there"..self).

With only 2% of the supply now valued at near on a half $Billion marketcap I'd say that was a reasonable incentive for keeping the other 98% 'off books' at all costs otherwise the token-to-coin ratio is going to get shorted to Kingdom Come. So I can empathise with your sense of urgency in keeping anyone who suggests such measures dismissed as "trolls" and not taken seriously

This.

I guess we'll see if these concerns are validated as more exchanges will give a larger basis for price discovery.

I think blocking and cheaply labelling toknormal a troll as others on the thread have is a bit much.

1. VERI didn't decide to calculate the marketcap based on that formula... (eg. this is not coinmarketcap thread)
2. See 1.

Hey, the horse is not dead - it's well and truly alive in case you hadn't noticed and this thread is only too happy to celebrate it.

It's alive because of a formula - the formula that I and others have been highlighting and the formula that Reggie designed, so don't diss it. You might regret it

You keep complaining about the way the market cap is calculated... It's really simple really.   If you want coinmarketcap to change, write them instead.  No amount of complaining in this thread will change the way they calculate on their site since nobody on that site is reading this thread....   Make them change it for everyone.  Your problem is solved.   Stop beating a dead horse in this thread.   You are really starting to just sound like a troll even if that's not what you are trying to do.

And maybe what you're struggling to get your head around is simple arithmetic and standard accounting practice.

The fact that you think that more "off-book" sales may add value is not an excuse for manipulating markets through devious reporting or otherwise "gaming" of the statistics in order to garner liquidity for "institutional" investors at the expense of exposing small ones to higher levels of risk than they would be under authentically presented market metrics.

Update from Reggie: "i haven't been arrested, my servers haven't been confiscated and I'm still plugging away. I have a trip to another large country which looks very promising, and I was invited back down to Jamaica. This may be very promising as well. We'll see what I can return with, in hand."

That pop from the Jamaica stock exchange news is still being felt, if only there were more exchanges to go for eh, oh if only there was some kind of list that took you to the Jamaica stock exchange amidst the other plausible targets for Veritaseum to give you an idea of the scale here...

https://en.wikipedia.org/wiki/List_of_stock_market_indices#Jamaica

Oh and if only that list didn't include institutions and other banking targets that are potentially bigger and more lucrative.

I just don't see where the value is going to come from going forward

 

/sarcasm.



To be serious for a moment, I do understand the sense of trepidation felt by some posting on here about a lot of tokens being "off book" yet to be distributed,  reading between the lines most of these posts imply that this will put downpressure on the price, that said what I think they're struggling to get their heads around is the inherent value added with each sale, many will be met with news akin to the Jamaica announcement, the network effect has already begun, value is added with each sale especially if it's high profile, it can be hard to get your head around I know!