HOLY SHIT

Ico price.

For it to reach that price means someone had to buy. Means yes 500billion went into it but also moved around. Bag holders that don’t even know it yet.

Not everything had an ICO though, and that also doesn't take into account people sending fiat to exchanges

No lol, price is set to what people by at, its why if you buy a shitcoin with a trillion in circulation at 10 dollars, your blockfolio makes you an oil prince

Veeky Forums - Business & Finance, ladys and gentlemen.

what about people who mine coin they didn't buy shit

lmfao fucking cryptofags BTFO

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Which wouldn't happen.

If everyone started selling, the price falls - as does the "market cap".

Crypto defines market cap as (current price x coins in circulation), that's even "dead" coins no longer in circulation.

So, Crypto "market caps" are utter garbage.

I have a crypto called "4chin elite coin" only 1 in circulation, $1trillion each is the asking price. I have the first $1trillion market cap coin ;)

Only if someone buys though. You said
>(current price x coins in circulation)
More accurately its last price x coins in circulation, and orders on the book don't count

to know how much money has been put into a coin, you'd have to monitor how many coins have been bought, and what price each of them were bought at

ofc not
let's say we create a coin and distribute it for free for all members of Veeky Forums
let's say there are 1000 members and each member will be holding 10 coins
now let's say we all agree that each coin is worth 100 USD and agree not to sell for anything below that
we open our market to outsiders
at the first purchase from an outsider the coin market cap for the coin will be 1 million and it came from nothing (the outsider would have put only 100 USD in to buy his first coin)

>a market cap of say $1BILLION DOESN'T mean that $1billion has been put into it.

What is the term for that? Is there one? Would it be like "historical aggregate volume" or something?

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Discord + 90k telegram

this is how mcap for anything works, including the stock market

All alts' USD value is calculated based on the value of their sats right?

So if BTC halved in value, ARK's USD price on Binance would half in value even if its sats hypothetically kept trading sideways.

what I describe is essentially volume

market cap just takes the current price and multiplies it by total coins in circulation, this is not how much money has gone into a coin

but if you wanted to know how much money went into a certain coin on a given day, you'd have to look at the volume over 24 hours, something you can see on any coimmarketcap chart

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Are normies really spending their money on crypto without knowing this basic information? I mean, holy fucking shit.

If a bitcoin whale had say, 5% of the total Bitcoins in circulation (let's say BTC market cap is $240bn so he has $12bn of coins) and attempted to aggressively sell them on multiple exchanges in one day, the price pressure would utterly devastate the BTC price and probably drive it well below $1,000.

So, by selling $12bn starting worth of coins this whale has effectively wiped over $200bn of value from the market cap.

The price is only somewhat stable at any given level because buyers and sellers are leaning on it from both sides equally. If some terrible news came out about bitcoin, the buy pressure would evaporate and the price could tank 20% even though the amount being "taken out" of circulation would be a tiny fraction of that.

This is fucking basic stuff user.