🚨 The coin didn’t rise.. even though the project is excellent!
This situation happens a lot, and many people don’t know how to explain it. The issue isn’t in the project itself. The issue is called dilution.
Imagine a company has one million shares, and you own 100,000 shares—so in this case, your stake is 10%.
After some time, this company decides to issue one million new shares. You still own 100,000 shares, but in this case your stake drops from 10% to 5% because the number of shares available to the public increased.
🚨 And this same idea happens with some digital currencies.
If new coins keep entering the market over time, it means each investor’s share of the total available supply will decrease—especially if demand isn’t growing at the same pace, or even faster than the amount of coins being issued.
That’s why don’t look only at the coin’s price. Before you buy any coin, ask about these things:
-How much is the circulating supply today?
-What is the total supply?
-And will there be openings/allocations of large portions in the coming months?
Sometimes the project succeeds, but the abundance of new coin supply puts long-term downward pressure on the price.
#BTC #creatorpad
This situation happens a lot, and many people don’t know how to explain it. The issue isn’t in the project itself. The issue is called dilution.
Imagine a company has one million shares, and you own 100,000 shares—so in this case, your stake is 10%.
After some time, this company decides to issue one million new shares. You still own 100,000 shares, but in this case your stake drops from 10% to 5% because the number of shares available to the public increased.
🚨 And this same idea happens with some digital currencies.
If new coins keep entering the market over time, it means each investor’s share of the total available supply will decrease—especially if demand isn’t growing at the same pace, or even faster than the amount of coins being issued.
That’s why don’t look only at the coin’s price. Before you buy any coin, ask about these things:
-How much is the circulating supply today?
-What is the total supply?
-And will there be openings/allocations of large portions in the coming months?
Sometimes the project succeeds, but the abundance of new coin supply puts long-term downward pressure on the price.
#BTC #creatorpad