I seriously don't understand why people are fretting over MCap? We

Question

I seriously don't understand why people are fretting over MCap? We

hold coins, not MCap. The value of the coins will be identical.

Moving forward we will have the buying pressure of three communities pushing the price up.

All sounds fantastic to me?

#cryptocurrency #english #fetch-ai

0

27.03.2024

7 ответов

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Optycs

Chad
Market cap measures the total amount of $ value in...

What are the odds of ASI becoming ETF material?

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1 месяц назад

DV

Optycs
What are the odds of ASI becoming ETF material?

0

1 месяц назад

HotStepha Автор вопроса

Chad
Market cap measures the total amount of $ value in...

My understanding is that while MCap is a relatively good indicator for the size of a company, it doesn't quite mean the same thing in crypto as it does in stocks and shares where the price is directly associated with the value of the company in terms of assets and cash flow. It feels like it's a bit more ceremonial in the crypto space. In this case, three companies became one and we have the combined market cap of all three? Are you saying that the coin price should also be around 3x during the merger?

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1 месяц назад

Chad

HotStepha
My understanding is that while MCap is a relativel...

It’s even worse in crypto because typically a company’s market cap won’t drop below its book value. Crypto has 0 fundamentals like that.

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1 месяц назад

HotStepha Автор вопроса

Chad
It’s even worse in crypto because typically a comp...

But if it has zero fundamentals, then surely MCap is a bit of a Moot number? But coin price is king, no?

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1 месяц назад

Chad

HotStepha
But if it has zero fundamentals, then surely MCap ...

You use market cap to compare to liquidity in crypto. If a coin has $10bn market cap but $30 million in liquidity (easier to tell in DeFi) then that tells you it won’t stay at $10bn very long

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1 месяц назад

Chad · Accepted Answer

Chad

Market cap measures the total amount of $ value in the hands of people who are pursuing capital gains. It is an important measurement relative to liquidity, which gives you an idea of how hard something can crash when people start selling.

0

1 месяц назад

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I seriously don't understand why people are fretting over MCap? We

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