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Topic
Board Beginners & Help
Re: What is a Market Cap?
by
nitrocryptonitro
on 18/07/2018, 23:37:20 UTC
One point that is important to recall is that a market cap is only a suggested valorization of the whole assets of a crypto-currency at a given time.
That doesn't mean that the sum of the values detained by all the holders of that crypto-currency equals that market cap.
For example, if the first tenth of holders sells their crypto-currencies, there would be a dump in the asset price, and thus, the second tenth of holders to sell their crypto-currencies would only be able to sell them at a lower rate, and so on.
Last tenth of holders would sell them at a lower rate than all the other tenths.
And if we could add all the prices at which holders sold their crypto-currencies, that wouldn't equal market cap !