💸 Why are there tokens that are worth fractions of a cent?
Have you ever seen a token that costs $0.000001 and thought:
"If it reaches 1 dollar, I'll become a millionaire"?
Spoiler: it doesn't work that way.
📌 The price alone is not the whole story.
A token can cost a microscopic fraction of a cent but have billions or even trillions of tokens in circulation. That makes the price low, but the total sum of value (market capitalization) can be huge.
What matters is the market capitalization
📊 Market capitalization: the true measure of value
🧠 Capitalization = Price per token × Total number of tokens in circulation
It doesn't matter that the price is extremely low; if there are trillions of tokens, the capitalization can be equal to or greater than that of much more expensive coins.
A token with 100 trillion units, even if it costs $0.00001, can already have a high capitalization. For it to be worth 1 USD, it would have to surpass the ENTIRE crypto market. That’s not going to happen.
🐸 Examples?
– PEPE, SHIB, FLOKI... tokens with trillions in supply, low prices, and many illusions floating around.
Many get excited about the price skyrocketing, but the reality is that for that to happen, there should be enormous and sustained demand, or a massive burning of tokens to reduce the supply.
🔥 What you should do before investing in a cheap token:
1. Check the total and circulating supply.
2. Verify the real market capitalization.
3. Know the project behind it: does it have utility or is it just hype?
4. Research if there are plans for token burning or supply reduction.
🎯 Conclusion:
A low price is not synonymous with a safe opportunity or quick gains. The key is to understand the token's economy and its real value, not to get excited about small numbers that do not reflect the complete picture. Low price ≠ safe opportunity.
✍️ Have you ever been tempted by a token that seemed like a giveaway? Share your experience, and let’s learn together.