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A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

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51–60 of 177 posts

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#51

It's facetious (and bad 'journalism') to claim $100B vanished. It was never there to begin with: market cap isn't something you can cash in on. It's merely the result of price multiplied by supply. If you owned a significant portion of all the coins in the world, and tried to sell them all at once, you wouldn't end up with number_of_coins * price, it would (realistically) be a smaller number given the market slippage…

>It's facetious (and bad 'journalism') to claim $100B vanished. It's certainly not bad journalism, this is how all sorts of assets are reported on. Market Cap isn't a perfect metric but it's pretty good and keeps us from saying things like "AMZN is down 50%" when they do a stock split. In the sense that yesterday if you summed up what all the individual holders saw when they checked their accounts you'd get $200b and…

It’s not black and white either, though.

If 10% of stock holders are able to cash out without changing the price significantly, market cap would be an inaccurate measure, but not that far off.

If, on the other hand, only 0.1% of holders of some token are able to cash out without significantly affecting the price, the value they think they have just isn’t there (to a much larger extent than the case above).

To use an extreme example: if I issue 2^100 tokens, and manage to get a couple of orders in an order book with a mid (and “last trade”) price of 0.1 cent, and this price goes to zero, did 1.268^27 dollars of market value just vanish, or were the holders of this token misinformed?

The inherent inaccuracy of market cap value is inversely proportional to liquidity: the less liquid the asset, the further away from reality market cap value is. And these tiny tokens are some of the least liquid assets in existence.

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#52
post #23

Earlier quoted context omitted.

Wrong. https://www.investopedia.com/terms/m/marketvalue.asp Market value definition: > obtained by multiplying the number of its outstanding shares by the current share price The reality of selling has nothing to do with it. It's just a math equation.

How can a thing which never existed to begin with vanish? There wasn't $100B sitting around in a bank account waiting to be claimed, which then suddenly evaporated. Also investopedia isn't exactly a high quality source.

$100B was created on paper and lost on paper.

Net worth is the same concept. Jeff Bezos net worth is calculated based on how much his assets are theoretically worth based on current fair market prices. He doesn't have to sell all his assets to determine his net worth.

People don't like the "lost $100B in market value" part, but it is accurate since market value is calculated on paper.

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#53

It's facetious (and bad 'journalism') to claim $100B vanished. It was never there to begin with: market cap isn't something you can cash in on. It's merely the result of price multiplied by supply. If you owned a significant portion of all the coins in the world, and tried to sell them all at once, you wouldn't end up with number_of_coins * price, it would (realistically) be a smaller number given the market slippage…

I keep asking if there is a better term than than straight MarketValue (shares * share price). Quoting from a previous comment of mine: Imagine two different sets of digital objects: AlphaCoins and BetaCoins - they're identical in the say way physics professors say "imagine an infinite frictionless plane". Both have a 1000 in circulation. Both are worth $10 each. Both have a market cap of $10,000 US Dollars. But the…

24h volume is related. For instance NEM has a market cap of 14B, but 24h volume puts it at 62M where as LTC has a market cap of 13B, but 24h volume of 0.9B.

If you tried to liquidate the same amount (denominated in USD) in NEM and LTC you'd see much more price slippage in LTC than in NEM.

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#54
post #49

Earlier quoted context omitted.

In Tron's (TRX) case, the project's whitepaper is plagiarized [0] from Filecoin's, and the CEO (Justin Sun) dumped 6 billion tokens [1] after pumping the price by announcing "partnerships" that turned out to be him hiring developers. TRX is the literal definition of a shitcoin, yet the price pumped 10x in less than 10 days. [0]: http://www.trustnodes.com/2018/01/08/trons-whitepaper-copied... [1]: https://www.reddit.c…

>TRX is the literal definition of a shitcoin, yet the price pumped 10x in less than 10 days. So a "shitcoin" with a 9B$ market cap? We really are living in a brave new world of financial disruption...

Yes. This is also why Market Cap is a problematic metric in the cryptocurrency space.

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#55
post #49

Earlier quoted context omitted.

In Tron's (TRX) case, the project's whitepaper is plagiarized [0] from Filecoin's, and the CEO (Justin Sun) dumped 6 billion tokens [1] after pumping the price by announcing "partnerships" that turned out to be him hiring developers. TRX is the literal definition of a shitcoin, yet the price pumped 10x in less than 10 days. [0]: http://www.trustnodes.com/2018/01/08/trons-whitepaper-copied... [1]: https://www.reddit.c…

>TRX is the literal definition of a shitcoin, yet the price pumped 10x in less than 10 days. So a "shitcoin" with a 9B$ market cap? We really are living in a brave new world of financial disruption...

I mean, even doge hit $2B market cap. And it's the parody cryptocoin.

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#56
post #55
post #49

Earlier quoted context omitted.

>TRX is the literal definition of a shitcoin, yet the price pumped 10x in less than 10 days. So a "shitcoin" with a 9B$ market cap? We really are living in a brave new world of financial disruption...

I mean, even doge hit $2B market cap. And it's the parody cryptocoin.

it's a parody cryptocoin with faster transactions and cheaper fees than the market leader..

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#57
post #54
post #49

Earlier quoted context omitted.

>TRX is the literal definition of a shitcoin, yet the price pumped 10x in less than 10 days. So a "shitcoin" with a 9B$ market cap? We really are living in a brave new world of financial disruption...

Yes. This is also why Market Cap is a problematic metric in the cryptocurrency space.

What's wrong with it? Seems like a perfectly normal metric for coins just like for stocks and bonds.

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#58

It's facetious (and bad 'journalism') to claim $100B vanished. It was never there to begin with: market cap isn't something you can cash in on. It's merely the result of price multiplied by supply. If you owned a significant portion of all the coins in the world, and tried to sell them all at once, you wouldn't end up with number_of_coins * price, it would (realistically) be a smaller number given the market slippage…

>It's facetious (and bad 'journalism') to claim $100B vanished. It's certainly not bad journalism, this is how all sorts of assets are reported on. Market Cap isn't a perfect metric but it's pretty good and keeps us from saying things like "AMZN is down 50%" when they do a stock split. In the sense that yesterday if you summed up what all the individual holders saw when they checked their accounts you'd get $200b and…

If I buy 100% of Amazon stock, I've got something that's going to be roughly worth the market cap of the stock.

If I buy 100% of bitcoin, I've got nothing. Nobody will be interested in a token that can't be used for anything any more.

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#59

CoinMarketCap is in a tough position here. I can obviously understand not wanting to list massive outliers in an average, but at the same time there isn't realistically a way for them to "safely" adjust which exchanges they include in the averages. No matter what, it's either going to cause big sudden jumps in either direction, or they can "smear" it across some time, which (in my opinion) would look really bad as it…

IMO the problem was not adjusting the dollar value, but the fact that they did not regenerate the past week's data in the sparkline. So the weekly price graphs showed a sharp drop in many coins that didn't actually happen. They should have regenerated the graphs (they also should have posted an announcement on their site)

Re: A Cryptocurrency Website Changes Its Data, and $100B in Market Value Vanishes

#60
post #55

Earlier quoted context omitted.

I mean, even doge hit $2B market cap. And it's the parody cryptocoin.

it's a parody cryptocoin with faster transactions and cheaper fees than the market leader..

Because it is far less used. The techno behind it is the same as bitcoin (with different configuration).
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