Post
Topic
Board Service Announcements (Altcoins)
Re: CoinMarketCap.com - Market Cap Rankings of All Cryptocurrencies!
by
whyenot
on 04/03/2014, 18:16:50 UTC
The calculation is fine. People buying premined currency already calculated this risk into the price of the coin. Thus the calculation is good.

Considering your close association with Auroracoin I can understand why you may feel this way.

The fact remain that 99% of the coins comprising Auroracoin's current "market cap" are in the premine and do not circulate. Should Bitcoins that have not yet been mined be included in BTC's market cap?  Wink Cryptocurrencies aren't companies and coins held in an uncirculating premine are not issued shares. It might be worth making some adjustments in how market cap is calculated.

coinmarketcap.com loses much of its utility if market cap can be gamed by coins with a large uncirculating premine. Auroracoin is just the first coin of this type. Considering it's success, a wave of clones will come next.