What determines the price of a Product or Coin?

RockBell

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Quote from: stomachgrowls on October 19, 2024, 04:54:31 PM

Yes, its just on that simple economics subject that we do all know on which it would really be that totally basing up on the supply and demand on which this is something which is really that something that mainly be considered but of course jut like been said by others that hype and interest will really be also relevant in speaking about a projects value because we do know that not matter how good it is when it comes to utility or quality but if the abscense of recognition is there then it would surely flop no matter what. We've seen different instances on where we do make investment on a good potential project but ending up on holding up some shit coin just because community or investor recognition isnt there. Thats why i would say that this factor is really that something relevant or really that needed on this case.

Yeah sometimes this analogy might be easy but keying into it is very difficult it takes the one with mind to be able to survive what you might go through when it comes to business and demand and supply are supposed to be what every entrepreneur needs because the moment does two are absent then there is no business then does are like the pillars of every investment. The presence of recognition matters a lot and and the is why every project wants to hype There products to the what ever level that they might, so that people will see reasons why they need. There is a good chances that if a good project have good marketing then you should expect a good result from the project.

Quote

There are really just that those projects that it might look shit but ending up on having that enourmous increase just because of that community hype. One of the main reasons on why there are people whom
do really love on investing on low caps even on how shit it would be but theres still hopes that it would really be sending up that rocket and reaching out those numbers and make that
enourmous profits.

You can not underestimate any project because any project that you look down on might do well and you will not be happy at all, because if you look at the whole process they might have a good road mark and it will show that the project actually have prospects, and that is why their are people that make money from meme coins they understand pretty well how they make their money, so it is better to trust what you believe in because that is what they use in making money you have to trust what you believe in.

Alpha Marine

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In a free market, demand and supply is all that determines the price.
There are factors that determine demand and supply, like the the quality, the packaging, the advertisement, the value, cost of production and so on. It is these things that will determine if people will buy the product on not. And it is it these things that the market will look at before agreeing at an equilibrium price.

The market looks at all the factors and agree that its a fair price to all (both the seller and the buyer)to buy a product at a particular price at a particular time.
Some times, the product may be overpriced, but that doesn't mean there is no equlibrum price. the lowest price the seller is willing to sell, if the buyer is willing to buy it at that price then they have arrived at an equilibrium, and that is te way it is with everything.

peter0425

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What does make a coin worth more? Hype.

People will buy anything that is deemed valuable by other people. Be it because they just do not want to be left behind or because they think buying it would be beneficial for them later in the future. This applies pretty much everywhere. This is why you see products giving out their own products to other people to promote and hype. So, more people gets attracted and thinks that oh it’s in demand > there must be a reason > let me buy it.

It’s how humans’ brains work.

N.O

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Quote from: Webetcoins on October 20, 2024, 09:39:56 PM

The answer would probably be "All of the above" in this case because there are a lot of things and factors that affect the price of a product in general. If we are to choose a combination among the given list, then I would probably go with scarcity + quality to be a combination that would make a product have a very high price value. You can think of Bitcoin as an example when you ask for this combination, it offers unique qualities, and it has a limited supply means it is scarce compared to other cryptocurrencies, hence, the high price value.

The price of a product depends on how good and useful it is, and among usefulness and good, you can include all the items from the list you have provided. Everyone would be willing to buy something that can be useful for them, and if it has good quality and it isn't available everywhere, its price will definitely be higher, so again, it all boils down to the supply and demand rule.

Here are many cryptocurrencies in the market but BTC is the safest investment in the market today and in the future also . BTC is the famous cryptocurrency and it is safest investment because it is decentralized and nobody can control the price of BTC and anyone can buy and sell BTC in the market. Other like ETH, BNB etc is also a safest investment but that is cryptocurrency and you should invest in it if you have long term goal and if you have short term goal then you should invest your money in any business and gold because you can liquefy in that Investments without any loss but BTC is different from that and we can get lose by investment in BTC .Always research on the the new businesses and if possible you should invest a little money in that,you will get profit from that.

bitgolden

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Quote from: N.O on October 18, 2024, 02:09:18 PM

Supply and demand of product and coin matters for the price of product or coin in the market. When product will be launch in the market then product price will be maintain if manufacturer will manufactur that product according to demand of product. If more people will like that product and they will buy that product and company stop that product to give in bulk then price of product will be up . The same thing will be happen when people will not take more interest in product and supplier supply that product in bulk then price will go down in the market.The same thing happens to the coin of cryptocurrency and we saw memecoin and their low price in the market due to more supply.

They will decide on the price based on demand and supply as well, with also cost of price at the same time as well.

We need to remember, each product costs something to the business, so that should always be the base price, you are not going to sell under that price, if you sell under it, then you are losing money, you also need to remember business has cost too, like taxes and salaries and what not, so you are going to put that into consideration while deciding on a price as well.

When you consider all of that, the only thing remaining is just what you are going to get with demand and supply. If there is a huge demand then we are going to end up with a lot more profit and this will result with a great situation.

What we are going to get with supply and demand is if people are demanding faster than what you are producing, then you increase the price to balance that out, the ideal situation would be you should sell at a price where you have basically zero left but also no more buyers left as well, if you sell at a price where product runs out of stock quickly and there are still buyers then you should increase the price, but if you sell at a price where there are products left then you should drop the price.

Webetcoins

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The answer would probably be "All of the above" in this case because there are a lot of things and factors that affect the price of a product in general. If we are to choose a combination among the given list, then I would probably go with scarcity + quality to be a combination that would make a product have a very high price value. You can think of Bitcoin as an example when you ask for this combination, it offers unique qualities, and it has a limited supply means it is scarce compared to other cryptocurrencies, hence, the high price value.

The price of a product depends on how good and useful it is, and among usefulness and good, you can include all the items from the list you have provided. Everyone would be willing to buy something that can be useful for them, and if it has good quality and it isn't available everywhere, its price will definitely be higher, so again, it all boils down to the supply and demand rule.

Scarlett_23

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Quote from: Ucy on October 12, 2024, 10:44:00 AM

Ofcourse, alot of us already know demand and supply are the main determinants of price of products or coins.
How about factors that specifically cause a product or coin to have high or low demand, and consequently determining its price?
What factors do you consider in the list or not in the list below before paying more (or less for a product/coin)

* Good quality: good quality creates more demand and higher price
* Utility/usefulness: the more useful, the more the demand and higher the price
* Longlasting: longlasting product would cost more.
* Hard/easy to produce: the more effort it would require to produce, the higher the price.
* Scarce/abundant: demand becoming greater than supply could create scarcity and high price.
* Easy to use: the easier it's to use, the more the demand
* Size: larger size, higher the price
* Attractiveness: the fancier, the more demand

I find your discussion very meaningful. You have explained the demand, price of a commodity or currency very easily and fluently in your writing. Good quality of a product or product leads to higher value of that product. At the same time it increases the trust of the buyers. The buyer then accepts it in the long run. Again, the issue of pricing depends on how much people or buyers need the product. In real life if a product is used more then its demand is always more. OP another point you bring up is durability. Good quality products or product ingredients are very good quality. Due to this the products are very durable and can easily win over the customers. If the production of the product is easy, then its price is low and if the production is not easy, then its price is high. The products which are not easily available, i.e. the demand is more than the supply, the price of the products is high. Again, if the population is high, there is a high demand for products.

Accardo

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Quote from: N.O on October 18, 2024, 02:09:18 PM

The same thing will be happen when people will not take more interest in product and supplier supply that product in bulk then price will go down in the market.The same thing happens to the coin of cryptocurrency and we saw memecoin and their low price in the market due to more supply.

Yeah, the bulk supply at a moment would imply low quality and consumers wouldn't want to purchase such products anymore. Recently, a specie of potatoes that was no longer found in our local market, because farmers stopped cultivating it, is now asked of after a while of diminishing return. So, any body who brings such specie to the market would sell at a high rate, until more farmers begin to grow the crop, sooner that special potato would be all over the market again, which would affect the quality and reduce the price. As some sellers will bring in poor quality produce, to meet the hot demand.

stomachgrowls

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Quote from: bitgolden on October 19, 2024, 02:48:00 PM

Quote from: Zaguru12 on October 14, 2024, 09:50:36 AM

Quote from: passwordnow on October 14, 2024, 08:59:14 AM

I agree about marketing. The better the marketing, the more convincing that the people will buy the product regardless of they need it or not. At the same time, the advertiser is also one of the reasons why a person buys a product. So, a good choice of the advertiser for the marketing is also one of the reasons why the convincing becomes greater and with that, the demand gets higher. But I believe that this is only a secondary thing about the valuation of the product.

This is exactly what get some products there edge against orders, the type of marketing and the investors there all so go a long way, for example bitcoin became a currency or product with the fastest growth rate at the moment as many investors are coming, the reason been that it solves the problems associated with the current traditional market. So every product coming in must try to break this niche and then when they get the attention the demand will actually be factor to increase the price.

Taking cryptocurrencies into consideration you will see even Altcoins coming through what the first tend Fi get is go with the trend and also get top or former successful project builders on their team and then it grows the price through demand. Look at this Alticoin called Solana; some Altcoins or shitcoin traders actually started to turn their attention to it when they found out that it uses less fees and it trading memecoins were a bit faster than Ethereum. This pushed the price of the coin from around $20 to $180 in less than a year, although I don’t fancy Altcoins but it tells you that once you can market the product well the price will be base on the demand

Basically we can say it's supply and demand in general. This is true for products because we have been buying and selling based on that for a long long time, but at the same time we can say this for crypto currencies as well. We are talking about something which has been quite often seen as whatever amount people are willing to sell on a price and how much they are willing to buy. If people buy then price goes up until people stop buying, if people sell then price goes down until people stop selling.

This is why I honestly believe supply and demand is the only thing that matters, I do not think we are going to end up with anything more at any given time. This is going to take a while but we are going to end up with a good result eventually.

The sad thing about what we have right now is not to realize what we are going to pay for something for the future, because we do not know what the demand or the supply will be like, so we do not make any estimates on what we are going to have in the end. I understand this is a difficult question to ask, but this isn't the guessing game, we need to take a look at the market and do technical analysis to see what the future of demand and supply will look like.

Yes, its just on that simple economics subject that we do all know on which it would really be that totally basing up on the supply and demand on which this is something which is really that something that mainly be considered but of course jut like been said by others that hype and interest will really be also relevant in speaking about a projects value because we do know that not matter how good it is when it comes to utility or quality but if the abscense of recognition is there then it would surely flop no matter what. We've seen different instances on where we do make investment on a good potential project but ending up on holding up some shit coin just because community or investor recognition isnt there. Thats why i would say that this factor is really that something relevant or really that needed on this case.

There are really just that those projects that it might look shit but ending up on having that enourmous increase just because of that community hype. One of the main reasons on why there are people whom
do really love on investing on low caps even on how shit it would be but theres still hopes that it would really be sending up that rocket and reaching out those numbers and make that
enourmous profits.

Stalker22

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Quote from: CryptopreneurBrainboss on October 18, 2024, 04:26:54 PM

Quote from: Ucy on October 12, 2024, 10:44:00 AM

I think the combination of factors in the list, from high to low priority can actually make a product or coin pricey. So, if you want higher price/demand then create a product or coin with more than one of the most important factors in the list.

Yeah they can but mainly what determines the price of goods is the production costs, transportation and other expenses that the manufacturer considers before selling his products.

The buyer also consider his own expenses before giving it a final price and if it isn't the consumer buying but a resellers, that's how the price will keep on increasing until it gets to the final consumer.

Yeah, sure, production costs matter. But have you ever looked at the Big Mac Index for example? Clearly there are other factors at play beyond just material and labor inputs.

Quote from: CryptopreneurBrainboss on October 18, 2024, 04:26:54 PM

The demand for a product is another importance factor than the others you mention as they are secondary reasons that don't necessary influence the price of things. No matter how beautiful your product is or quality they're, when there's no demand for it, the value decrease and not increase.

Right. Pricing ultimately boils down to what customers are willing/able to pay in a given market context. Companies naturally want to maximize profits, so they will price according to local market conditions, not simply based on production costs alone. There is definitely a strategy and art to pricing that has to balance consumer psychology, brand positioning, and financial objectives. So you are right, its not as straightforward as input costs = output price.

bitgolden

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Quote from: Zaguru12 on October 14, 2024, 09:50:36 AM

Quote from: passwordnow on October 14, 2024, 08:59:14 AM

I agree about marketing. The better the marketing, the more convincing that the people will buy the product regardless of they need it or not. At the same time, the advertiser is also one of the reasons why a person buys a product. So, a good choice of the advertiser for the marketing is also one of the reasons why the convincing becomes greater and with that, the demand gets higher. But I believe that this is only a secondary thing about the valuation of the product.

This is exactly what get some products there edge against orders, the type of marketing and the investors there all so go a long way, for example bitcoin became a currency or product with the fastest growth rate at the moment as many investors are coming, the reason been that it solves the problems associated with the current traditional market. So every product coming in must try to break this niche and then when they get the attention the demand will actually be factor to increase the price.

Taking cryptocurrencies into consideration you will see even Altcoins coming through what the first tend Fi get is go with the trend and also get top or former successful project builders on their team and then it grows the price through demand. Look at this Alticoin called Solana; some Altcoins or shitcoin traders actually started to turn their attention to it when they found out that it uses less fees and it trading memecoins were a bit faster than Ethereum. This pushed the price of the coin from around $20 to $180 in less than a year, although I don’t fancy Altcoins but it tells you that once you can market the product well the price will be base on the demand

Basically we can say it's supply and demand in general. This is true for products because we have been buying and selling based on that for a long long time, but at the same time we can say this for crypto currencies as well. We are talking about something which has been quite often seen as whatever amount people are willing to sell on a price and how much they are willing to buy. If people buy then price goes up until people stop buying, if people sell then price goes down until people stop selling.

This is why I honestly believe supply and demand is the only thing that matters, I do not think we are going to end up with anything more at any given time. This is going to take a while but we are going to end up with a good result eventually.

The sad thing about what we have right now is not to realize what we are going to pay for something for the future, because we do not know what the demand or the supply will be like, so we do not make any estimates on what we are going to have in the end. I understand this is a difficult question to ask, but this isn't the guessing game, we need to take a look at the market and do technical analysis to see what the future of demand and supply will look like.

Fortify

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Quote from: Ucy on October 12, 2024, 10:44:00 AM

Ofcourse, alot of us already know demand and supply are the main determinants of price of products or coins.
How about factors that specifically cause a product or coin to have high or low demand, and consequently determining its price?
What factors do you consider in the list or not in the list below before paying more (or less for a product/coin)

* Good quality: good quality creates more demand and higher price
* Utility/usefulness: the more useful, the more the demand and higher the price
* Longlasting: longlasting product would cost more.
* Hard/easy to produce: the more effort it would require to produce, the higher the price.
* Scarce/abundant: demand becoming greater than supply could create scarcity and high price.
* Easy to use: the easier it's to use, the more the demand
* Size: larger size, higher the price
* Attractiveness: the fancier, the more demand
Etc,

I think the combination of factors in the list, from high to low priority can actually make a product or coin pricey. So, if you want higher price/demand then create a product or coin with more than one of the most important factors in the list.

What do you think?

This is basic economics really and everyone who has been through the most simple education would have picked up on this - it's supply and demand. The very reason that capitalism is so popular after all, is that it tries to minimize the impediments to this process and create a structured framework for it to exist. It is the reason that communist systems like the Soviet Union and Mao's China failed so badly, because they tried to suppress a simple desire to trade which as a byproduct enables vast personal enrichment. If something is very popular and lots of people want it, then shrewd sellers will simply up the price to the point where they still sell. Otherwise resellers enter the market and take an extra bit of cream off the top.

CryptopreneurBrainboss

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Quote from: Ucy on October 12, 2024, 10:44:00 AM

I think the combination of factors in the list, from high to low priority can actually make a product or coin pricey. So, if you want higher price/demand then create a product or coin with more than one of the most important factors in the list.

Yeah they can but mainly what determines the price of goods is the production costs, transportation and other expenses that the manufacturer considers before selling his products.

The buyer also consider his own expenses before giving it a final price and if it isn't the consumer buying but a resellers, that's how the price will keep on increasing until it gets to the final consumer.

The demand for a product is another importance factor than the others you mention as they are secondary reasons that don't necessary influence the price of things. No matter how beautiful your product is or quality they're, when there's no demand for it, the value decrease and not increase.

GeorgeJohn

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In cryptocurrency many things can determine the increase, demand and supply is the first thing, speculation or news, is the second thing that can determine increase of bitcoin price, adoption of Bitcoin by well known companies can also determine the increase in Bitcoin, so we have different things that can make bitcoin to increase, so when the demands of bitcoin is high, it do risk rocket the increase of bitcoin, so therefore bitcoin doesn't have a particular thing that makes it to increase, if companies like Amazon and apple, embrace Bitcoin as a means of receiving payment from their clients, I think such factors can also make bitcoin to increase, that is as same as false information downgrade the price of bitcoin, so what makes Bitcoin increase can also make bitcoin to decrease in value.

Lanatsa

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Quote from: Silberman on October 18, 2024, 02:13:58 PM

Quote from: Ucy on October 12, 2024, 10:44:00 AM

Ofcourse, alot of us already know demand and supply are the main determinants of price of products or coins.
How about factors that specifically cause a product or coin to have high or low demand, and consequently determining its price?
What factors do you consider in the list or not in the list below before paying more (or less for a product/coin)

* Good quality: good quality creates more demand and higher price
* Utility/usefulness: the more useful, the more the demand and higher the price
* Longlasting: longlasting product would cost more.
* Hard/easy to produce: the more effort it would require to produce, the higher the price.
* Scarce/abundant: demand becoming greater than supply could create scarcity and high price.
* Easy to use: the easier it's to use, the more the demand
* Size: larger size, higher the price
* Attractiveness: the fancier, the more demand
Etc,

I think the combination of factors in the list, from high to low priority can actually make a product or coin pricey. So, if you want higher price/demand then create a product or coin with more than one of the most important factors in the list.

What do you think?

Related post:
Do you compare prices or bargain before making purchases?
https://bitcointalksearch.org/topic/--5512379

There are many factors that determine the price of a product and you forgot a few of the most important, marketing, hype and speculation, it does not matter if a product has superior qualities, if the marketing is bad or nonexistent then no one will buy the product, hype drives the price of a product much higher than what the characteristics of the product could command and speculation can move the price in either direction based on nothing but rumors, news or a small movement on the price.

Superior Quality
Superior Utility

Everything of this would really be completely useless if there's no hype and community back up on this one on which it would really be still ending up on failure because we do know
that this certain of factor would really be the outmost important. Come to think off or look at with those meme coins or those tokens which are built for the sake of fun and experimental?
They do make out some moon shot or reaching out 1000x or even more with just simply with that community hype and support on which this would really be causing up for its price to shoot up into those numbers
that we arent that able to expect on that it will really be able to do so, in compared into those projects which does have some solid utility and potential but still it wont really be
enough for it to beat into those coins or tokens made out by hype.

Determining precisely could be that very common but its not something that give out guarantees that it could be able to happen when it comes to pumping price.
There would really be those factors that could neither give out effect or wont really be that having no effect at all.

Silberman

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Quote from: Ucy on October 12, 2024, 10:44:00 AM

Ofcourse, alot of us already know demand and supply are the main determinants of price of products or coins.
How about factors that specifically cause a product or coin to have high or low demand, and consequently determining its price?
What factors do you consider in the list or not in the list below before paying more (or less for a product/coin)

* Good quality: good quality creates more demand and higher price
* Utility/usefulness: the more useful, the more the demand and higher the price
* Longlasting: longlasting product would cost more.
* Hard/easy to produce: the more effort it would require to produce, the higher the price.
* Scarce/abundant: demand becoming greater than supply could create scarcity and high price.
* Easy to use: the easier it's to use, the more the demand
* Size: larger size, higher the price
* Attractiveness: the fancier, the more demand
Etc,

I think the combination of factors in the list, from high to low priority can actually make a product or coin pricey. So, if you want higher price/demand then create a product or coin with more than one of the most important factors in the list.

What do you think?

Related post:
Do you compare prices or bargain before making purchases?
https://bitcointalksearch.org/topic/--5512379

There are many factors that determine the price of a product and you forgot a few of the most important, marketing, hype and speculation, it does not matter if a product has superior qualities, if the marketing is bad or nonexistent then no one will buy the product, hype drives the price of a product much higher than what the characteristics of the product could command and speculation can move the price in either direction based on nothing but rumors, news or a small movement on the price.

N.O

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Quote from: Accardo on October 18, 2024, 07:02:26 AM

On the ground of low demand, diminishing return is a factor that determines reduction in prices of most products. When the demand gets higher than the production rate there'll be an increase in price, then sooner the commodity now becomes scarce and buyers begin to go for its substitute, so at the next season of production the former expensive product may not interest people anymore, and the producers will have no option than to reduce the prices to attract consumers. And when more people turns to it again, the price increases, and repeats similarly.

Supply and demand of product and coin matters for the price of product or coin in the market. When product will be launch in the market then product price will be maintain if manufacturer will manufactur that product according to demand of product. If more people will like that product and they will buy that product and company stop that product to give in bulk then price of product will be up . The same thing will be happen when people will not take more interest in product and supplier supply that product in bulk then price will go down in the market.The same thing happens to the coin of cryptocurrency and we saw memecoin and their low price in the market due to more supply.

Yucky

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One major factor I've seen that determines the price of coins is partnership, collaboration, and investor adoption announcements. You know, whenever a coin is announced to be listed on Binance, its value increases instantly in anyone's mind. Similarly, when a big account announces a partnership, or when a project like Blum partnered with Dog coin, it gives Blum an edge due to Dogs coin's strong listing.

Partnerships and adoption announcements signal to investors that big players in the crypto world are investing in the coin, which increases its price and adds value to the market. Yes, that's one thing I've observed over time - seeing how partnerships and adoption announcements consistently drive up coin prices.

DeathAngel

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The price of a product is influenced by several factors including production costs, demand & supply dynamics, competition, perceived value & market trends. Things like economic conditions, consumer preferences & regulatory policies can also impact pricing. Businesses aim to set prices that maximise profit while remaining attractive to consumers.

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Quote from: Ucy on October 12, 2024, 10:44:00 AM

~

In simple terms you can just describe it as the supply and the markets demand. The factors you listed down are essentially a break down of said "demand" but since a lot of people have different ones, it's really just generalized as "demand". It's also why you can't see any product be successful just like that because the players in the market have different demands or different levels of preference in terms of what they want from a product.

Quote from: asriloni on October 14, 2024, 08:33:23 AM

I'm sorry, but i have to argue if you're a little bit wrong. This is because almost all of factors above were not really applicable to the meme token. And it seems to me you don't pay attention to the meme token.

A meme token's price fully depends on supply and demand. It ignores all the factors you mentioned. It lacks quality, is easy to produce, and is in heavy supply. But, these days, meme tokens gained more attention than utility products or coins.

What OP said isn't entirely what "demand" consists of, not to mention that in most meme coins cases, demand is artificially inflated. If I were to specify what I guess it'd be the "demand to buy a product that can sell big later". Kinda specific-ish, but hey that's just how it works. People buy meme coins because prices are artificially inflated, so they want to ride it down and well, it's just whoever gets there first that profits more than anything else.

Topic: What determines the price of a Product or Coin? (Read 530 times)