thaitraderoficial
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‼️ Responding to the colleague with all respect, regarding the post in the attachment, his question regarding #OM
CAPITALIZATION is just price times quantity in circulation. If the currency has a huge supply, it can still maintain a 'high market cap' even while melting in the chart. This is not a sign of strength; it is a sign of inflation in the asset.
REMINDER: What really matters is the behavior of price, volume, trend, and real liquidity.
What is inflation in the asset? It occurs when the project puts too many tokens on the market, meaning it increases the supply in circulation. This can happen in the following ways:
Planned, hidden (projects dumping tokens without notice) OR even through internal dump (sometimes to realize profit before an unlock), as seems to have been the case with OM.
Result?
More tokens in the market = price per token drops, even if the capitalization seems "high".
🤝🏽🚀‼️ I HOPE I HAVE HELPED HIS QUESTION, WHICH MUST BE SHARED BY MANY.
$OM
CAPITALIZATION is just price times quantity in circulation. If the currency has a huge supply, it can still maintain a 'high market cap' even while melting in the chart. This is not a sign of strength; it is a sign of inflation in the asset.
REMINDER: What really matters is the behavior of price, volume, trend, and real liquidity.
What is inflation in the asset? It occurs when the project puts too many tokens on the market, meaning it increases the supply in circulation. This can happen in the following ways:
Planned, hidden (projects dumping tokens without notice) OR even through internal dump (sometimes to realize profit before an unlock), as seems to have been the case with OM.
Result?
More tokens in the market = price per token drops, even if the capitalization seems "high".
🤝🏽🚀‼️ I HOPE I HAVE HELPED HIS QUESTION, WHICH MUST BE SHARED BY MANY.
$OM
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
FET
0.77
+6.35%