Cardano Foundation's ADA is gaining more popularity in the crypto world ever since the announcement was made regarding the release of Shelley later this month. ADA has been picking up steam since then and it has already doubled in value from the day of the announcement. It was briefly trading at 13.3 cents before correcting and at the time of writing this, ADA is trading at 11.8 cents.
Source
Coinbase, a popular cryptocurrency exchange, announced that it was interested in listing ADA, two years ago but since there was a huge delay in the release of much-awaited Shelley, Coinbase kept ignoring it. But now, there is no reason for Coinbase, not to list ADA. Charles Hoskinson announced that Coinbase listing is possible before the end of this year and if ADA gets listed on Coinbase, ADA might touch 40 cents by the end of this year.
Now let's jump into our main topic
I don't know if you follow coinmarketcap and coingecko rankings, but I have been following these two websites for more than 3 years now. I have always noted differences in ranking of different crypto projects. But seeing a top 10 crypto ranked number 6 on coingecko and number 7 on coinmarketcap got me thinking about the possible reason. I know, coinmaketcap lists crypto projects that aren't on 3 big centralized exchanges on page 3 but this was is totally different.
I did some research about the possible reason and I came across a few posts that have addressed this issue. I also asked a few people involved in Cardano and I got my answers. The reason is that Cardano Foundation, IOHK, and Emurgo were allocated some ADA at the start of the project. These three companies are involved in ADA development and have received over 5 billion ADA which have a value of over $600 million at the current price.
The ranking of ADA depends on the calculation of circulating supply. Coinmarketcap does not calculate those 5 billion ADA allocated to three companies but Coingecko does and that's what causes the difference in ranking of ADA.
Now the main question that arises is that "Should we calculate the company tokens as well"? This depends on whether or not the tokens have been spent or not and was there any lock-up period for those tokens. I still don't have answers to those questions.
If you have the answers to these questions, let me know.
Disclaimer
This is not financial advice. These are my personal thoughts and opinions
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Circulating supply is calculated as total supply deducted by unspent coins held by development team... This means any spent coins are not deducted. With coins that have single wallet address (for example premine wallet) for development and maintenance costs, and locked coins, this is easy calculation.
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It is not clear whether those premine coins have been spent or not. Cardano had this info on their website before but I couldn't find that now.
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With my own coin, the server hosting official block explorer just queries the wallet daemon that has the premine wallet loaded... As the server has password login disabled and no "normal" user accounts, it's as safe as running it on local machine.
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In one of my posts I talked about this currency, and the truth is a currency with a lot of projection, it may surprise in the future
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It is indeed a great project, maybe a top 3 but might take some time to reach there.
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"The ranking of ADA depends on the calculation of circulating supply. Coinmarketcap does not calculate those 5 billion ADA allocated to three companies but Coingecko does and that's what causes the difference in ranking of ADA" that must be a obvious reason for the difference.
I though was wondering there is not that much difference between been ranked 7th and 6th in the various platform. But I think for me, coinmarketcap can be more taken or it is only me thinking in that direction though.
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I already mentioned that. The confusion arises as there is no info about those premine coins. No one seems to know whether they have been spent or not.
I like both coinmarketcap and coingecko.
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In personal use, Coinmarketcap is a great tool not known coingecko , generally, the calculation is done with tokens that circulate in the market
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Coingecko was a witness on steem for almost two years. You can still see it in top 100 if you go to witness page. It is a great tool when it comes to ranking crypto.
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I use them to investigate possible investments.
Thank you for your contribution.
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@tipu curate
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Upvoted 👌 (Mana: 0/20) @swap.app - quick steem <-> sbd swaps
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Hmmm... I've always thought I'm the only one noticing the difference sometimes not knowing I have someone like me who also notices it too. This phenomenon isn't only applied to ADA alone, it also applies to some other cryptos... Or could it be that there's a change in the market cap or number of supplies on both sites?
Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead
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It depends on how the calculation is done.
There is no clarity about the premine stake of ADA, that's why there is a confusion.
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