Price is pretty irrelevant, available supply doesn't mean a lot on it's own, but volume is really important.
There are two key things I look at in a newly added coin - the market cap, the volume . . . and most importanly market cap divided by volume. That really tells a story - I like something around a ratio of 100. You won't get this number on CMC, gotta do that in your script.
You can see this even with larger coins - You want a good ratio . . . for example
Bitcoin 74:1
Litecoin 118:1
Compare that to larger coins with suspect valuations -
Ripple 1700:1
Bytecoin 979:1
Too large and it's a dodgy premine, too small and it's a pump'n'dump.
There are two key things I look at in a newly added coin - the market cap, the volume . . . and most importanly market cap divided by volume. That really tells a story - I like something around a ratio of 100. You won't get this number on CMC, gotta do that in your script.
You can see this even with larger coins - You want a good ratio . . . for example
Bitcoin 74:1
Litecoin 118:1
Compare that to larger coins with suspect valuations -
Ripple 1700:1
Bytecoin 979:1
Too large and it's a dodgy premine, too small and it's a pump'n'dump.
Well damn..I was expecting some crazy algorithm haha. That's exactly the kind of constructive information I was trying to find!
So from that point I'd assume you just need to do your research and look for any scammy tell tales. I have been out of the cryptocurrency loop for a little while and assume that scammers have evolved with the times. Obviously huge premines as you said are suspect and that ratio seems a decent way to identify a pump n dump. Are there any new red flags that scream scam to you from your experience?
Seriously, huge thanks for all the info.