QuestionOfTheDay: Can a coin with fixed supply make a new low?
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/...d-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/...d-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