DislikedInstitutional investors can't ignore half a trillion market capitalization anymore. {image}Ignored
For the folks who haven't seen my previous posts, here’s an example that shows how easily crypto market cap can be manipulated.
Let’s say I create a token with a 10 billion supply, I develop a simple ERC20 contract and deploy it on Ethereum, and on an exchange. I then convince my friend Vitalie Vitalik to buy one of these tokens for $1.
Boom, there you have it!
A token with a $10 billion market capitalization !!
Congratulations to me!
I have now created a promising new project that has received lots of investment.
As you can see, this is all absolute rubbish.
It doesn’t mean $10 billion was invested in my token and it in no way helps in understanding its value.
The reality is, it’s worth nothing.
Market cap only serves to obscure and create a false sense of value when actually it’s just a multiplication of the last transaction price by the circulating supply.
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