I want to explain another way why market cap means

Question

I want to explain another way why market cap means

nothing for price.

Did you know that a burn will lower market cap and not do anything directly for price?

For example...if the majority holder entity of PLS were to burn half of the entire supply....the market cap would instantly get cut in half...and the price would not move at all.

The same supply in the liquidity pools would still be there...the trading demand would be relatively the same...but you just cut your mc.

Now some tokens have "buyback burns"...then all they do is purchase from the liquidity pools, running the price up...which moves market cap, but then follow that with a burn and remove those bought tokens from circulation. This brings market cap right back to where is was. So this is an example of how price often moves and market cap stays the same.

#cryptocurrency #english #hex-crypto

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23.12.2021

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Combot · Accepted Answer

Combot

HEX's price went up the fastest when its liquidity was the lowest. Bitcoin's price went up the fastest when its liquidity was lowest. Ethereum's price went up the fastest when its liquidity was the lowest.

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23.12.2021

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I want to explain another way why market cap means

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