We’ve got a long way to go until the true value of crypto is realized. Crypto is not a get-rich-quick scheme. It’s a revolution in the decentralization of money, software, and the internet at large. Profiteering with it sets us back and you should be ashamed @cz_binancehttps://t.co/7sZlrVUKHA
Coins have their own network. Bitcoin, Ethereum, Litecoin, Iota, ... all coins. Tokens run piggyback on another coin's network. Only few coin's offer this functionality, the biggest one is Ethereum with its ERC20 tokens which are basically 0 ETH transactions with the token encrypted as data attachment.
Has market cap placement always been a measure of success in crypto, or is that new? As someone pointed out today, it’s not a good metric. Or it’s not THE metric. You can launch a coin with 100B coins, sell one to yourself for $1, and be at the top.
Market cap is generally a good indicator of the total value of the commodity and makes a decent metric for comparison. A good example outside crypto is market cap of companies.
If you can launch a new coin with 100B supply and are able to sell all of them for $1 then you are either very wealthy or have made a coin backed by some fantastic tech.
What other metrics would you use for comparison?
He meant selling only 1 coin for 1 dollar to himself, making CMC put a market cap for that chain at 100 billion.
What he's failing to understand is, however, that CMC and any self respecting listing site will filter him out immediately if they ever did the mistake of adding him in the first place.
There's reasons to think market cap is not the best metric around to measure success but that was not one of them.
But you can sell only 1 coin for $1 and the calculations results in $100B cap.
Additionally, market cap in crypto speaks to the trading value but necessarily the value of the company. That company doesn’t necessarily have $100B of revenue, and it also can mean $100B wasn’t put into it.
I think companies need to be measured by revenue and profit as well. Otherwise a company can have a giant market cap while only having a white paper and good marketing.
Not with a weighted average of 24 hour volume across every exchange that trades that token. It would take a *lot* more to manipulate a market cap up in the way you're suggesting. I think market cap is about the best metric you're going to get for comparison. How else would you do it?
Plus, tokens don't represent equity so revenue doesn't have much of a place in determining the value of a token, anyway. The reason that it works for stocks to base it off of revenue and profit is because it's an equity claim on a company.