Coins like EOS , ICP , FIL, LUNA and many more made a new ATL this cycle. The reason being the bear market of course, but also the fact that they are inflationary coins.
Generally price is determined as such:
Price = MarketCap/TotalSupply
A coin with a marketcap of 1,000,000$
With a total supply of 1,000,000 coins
Will bring the coin to a price of 1$.
Now what happens when the total supply of the coin is increased to 2,000,000 the next year?
Price = 1000000/2000000 = 0.5$
And there you have it. A lower price with the same marketcap because of tokenomics.
To learn more about tokenomics, visit Binance Academy @ academy.binance.com/en/articles/what-is-tokenomics-and-why-does-it-matter
So theoretically speaking, a coin with a fixed supply can only make a new low IF:
A. All holders since 1 March 2020 sell at a loss.
B. Token supply can be manipulated
C. Burn wallet accessed
D. Some kind of long squeeze where traders going long forced to go short/liquidate to cover positions, driving price downwards similar to GAMESTOP ( GME ) but the other direction *whoops*
E. Dead project, no community, delisted everywhere
Do leave your comments down below on what else causes projects to reach new ATL!
#XNO #Nano #DigitalCurrency
Generally price is determined as such:
Price = MarketCap/TotalSupply
A coin with a marketcap of 1,000,000$
With a total supply of 1,000,000 coins
Will bring the coin to a price of 1$.
Now what happens when the total supply of the coin is increased to 2,000,000 the next year?
Price = 1000000/2000000 = 0.5$
And there you have it. A lower price with the same marketcap because of tokenomics.
To learn more about tokenomics, visit Binance Academy @ academy.binance.com/en/articles/what-is-tokenomics-and-why-does-it-matter
So theoretically speaking, a coin with a fixed supply can only make a new low IF:
A. All holders since 1 March 2020 sell at a loss.
B. Token supply can be manipulated
C. Burn wallet accessed
D. Some kind of long squeeze where traders going long forced to go short/liquidate to cover positions, driving price downwards similar to GAMESTOP ( GME ) but the other direction *whoops*
E. Dead project, no community, delisted everywhere
Do leave your comments down below on what else causes projects to reach new ATL!
#XNO #Nano #DigitalCurrency
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.