Hello,
I am asking you for explaining me one simple thing: how is token price forming? Which formula can help me with calculation of token price basis on its capitalization? Because as I understand token price raises and falls because of capitalization raising or falling, right?
Let’s imagine that I will create my own token related to future product which people will buy for that token.
I will generate token with start price 1 ETH per 10 TOKENS and supply would be 10,000,000 TOKENS. So after investors buy all that token its capitalization will 1,000,000 ETH. And price 0.1 ETH per 1 TOKEN (27$ basis on actual price).
And for example after this its gonna be listed on exchange like binance. How can I calculate price changing if say somebody buy that token on another 100 eth? In other words: give me formula or algorithms which are used on exchanges for calculating tokens price changing. I dont want to learn how markets works because I want to have just simple understanding of it so please do not redirect me on stock market books etc. Just explain me in simple words and give mathematical formula which helps me with price calculation basis on capitalization changing, etc.
Maybe there are any scripts or programs where I can simply enter some parameters and it will automatically predict me price?
I am asking you for explaining me one simple thing: how is token price forming? Which formula can help me with calculation of token price basis on its capitalization? Because as I understand token price raises and falls because of capitalization raising or falling, right?
Let’s imagine that I will create my own token related to future product which people will buy for that token.
I will generate token with start price 1 ETH per 10 TOKENS and supply would be 10,000,000 TOKENS. So after investors buy all that token its capitalization will 1,000,000 ETH. And price 0.1 ETH per 1 TOKEN (27$ basis on actual price).
And for example after this its gonna be listed on exchange like binance. How can I calculate price changing if say somebody buy that token on another 100 eth? In other words: give me formula or algorithms which are used on exchanges for calculating tokens price changing. I dont want to learn how markets works because I want to have just simple understanding of it so please do not redirect me on stock market books etc. Just explain me in simple words and give mathematical formula which helps me with price calculation basis on capitalization changing, etc.
Maybe there are any scripts or programs where I can simply enter some parameters and it will automatically predict me price?