RELATION between Price and Market CAPITAL . Why most of youtubers makes BLUNDER to evaluate it?

in mgsc •  6 years ago 

PRICE.png

Hi Friends, one day i saw that someone ask to a cryptocurrency expert, when price of cardano will double?
He replied, by reaching the marketcapital double price will automatically double.
In other words according to Expert price is directly proportional to the Market Capital.

Now Let's take an Example:

A community plan to launch a cryptocurrency/cryptoasset Exchane. For crowed funding launch an ERC20 Token sale named TIGER.
Number of token sale during ICO is 10 million and price is one USD.
Suppose ICO was successfull and total token sold out.

now, MARKET CAPITAL= 10 million x $1 = $10 million

Now, according to whitepaper the community launch its EXCHANGE on due date.
On exchange 2 million tokens puts in sale order @ $2 and 1 million token sell order completed.

Now, PRICE= $2
MARKET CAPITAL= $10 million + $2million = $12 millton

Token price become twice by increase in 20% Market Capital only.

AFTERMATH:

  1. Price is not directly proportional to the MARKETCAP. Although it is proportional to marketcapital.
  2. Price is govern by supply and demand.
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