Bitcoin Forum

I have a doubt how a coin value is decided before ICO or release???????

It is just all speculation. Most prices are determined just with supply and demand as well. Look for low caps and a great team/project to invest in. ICO's are too scary these days.

The basic formula is the market supply versus how much the market demand is and willing to pay. These two things determine us a marketcap and that is how the value is determined through these basic principles.

Before ICO - Team fix whatever price they want or decide price per token according to how much token they have made at first and how much maximum they want to collect through ICO.

After ICO - investors and bounty hunters decide where price will head, if they will dump their holdings than price of coins can go way lower than ICO price.

Price pumps at first release are merely speculations. Initial coin price is generally decided first by regular supply and demand at first, then speculation hits price jumps. But in general people directly go into bear psychology start dumping after rise.

its just about demand and offer really that form the price, if somebody is selling at a price x and somebody else is willing to pay x or more that is going to be the price.

He is talking about ico's, where there is no "real" demand before they set a price and start selling.

It's a complex  and interesting question. It depends on the projects actually and be determined according to different factors.
If you want take few minutes to read this article, you will have a clearer idea about it
https://www.cryptocompare.com/coins/guides/how-does-an-ico-work/

backing product, experienced team, working website, already working different kinds of apps (not necessarily crypto related), deman, MARKETING, etc...

the value is initially decided by the ICO price because most of investors won't sell bellow!

after some days demand and offer is playing his game and the price is automatically balanced!

It is determined by a lot of things, but the most important things that defines the price are those;
the circulating supply and max total supply of the coin; if unsold tokens are going to be burned or not; if they had a succesfull ico; if people are still talking/hyping that coin; and if it is going to get listed on a big exchange.
Obviously that there are going to be a lot of factors that decide the price, but the most important is the money that they have raised on the ICO and on the Pre-Ico, because those stages are the ones who determines the real price, before the ico.

For us it's a balance of requirement for tokens within our platform over time and the amount that we need to raise to fully realise our vision. At a basic level the latter divided by the former gives us the token value.

pre ico sale is fix,the team will decide how much will the coin will achieved then after the ICO bounty hunters and investors will decide if the coin will pump or dump.

Initial coin is valued base on the the total supply of coins available, the viability of the project,what investors expect and the demand of the coins. Where equilibrium is reached,a price tag is issued per coin.

The short answer is that the team comes up with a number before the ICO. If the team is reasonable, the number is not simple made up but corresponds to their business model, etc.

The balance is important. If you place for price 1$ for 10000 coins, it will be very washed out.
On the other side, price in 1$ for 1 token will lead to overconcentrated tokenholders. Who will be able to control the price.
For me, the rate 1$=1 token is the least viable.

Usually the sum placed into crowfund tells the coin market cap. For instance, if the project collects 1BTC total, all the coins will be worth 1 BTC.

So 1000,000 Xcoins =1BTC

if 2BTC is raised, so 1000,000 Xcoins = 2BTC

Every project already made their own whitepaper, and that provides you the more technical explanation about the price of the coin itself. Some projects just put the actual price for each token just like eidoo. and there are some projects just try to determine the price after the crowdsale. that means the total raised funds will be divided with the total issued tokens.
Both were the way to decide the price of the ico.

There is no way to determine the value of a coin, but it is like any other coin or currency where the people decide the value. The value is based on what people believe the value is and what they are willing to pay for it. Then you factor in supply vs demand and the market starts to decide what it's valued at depending on what people value it at. That's why BTC is worth so much.

It’s really good link I dint know still waves having 25% loss for the ico investors even it gave more information about DAO Hack after Ico .even the link not completely clarified the question but got good information worth reading.

BTX distribution model is novel ~let's use this as a textbook case study :-D  //^to da mooonnnnn

https://www.cryptopia.co.nz/Exchange/?market=BTX_BTC

The initial price is decided by the team members themselves and they decide by the number of tokens they have created. Once the main sale is off, the trading starts and the the price when stabilized gives the actual value of the coin. It depends on the investors and bounty people, if they hold the coins then the price of the coin increases as the demand is more than the supply but if they dump the coins then the supply is more in the market and hence the price goes down.

As said, initially the team sets up the value, distributes their tokens, coins gets circulated in the market and depending on their projects and the teams the captured. Demand arises when the project booms up. So more coins are created and the price goes up. 

The OP is asking on how the price is defined of a coin before the ICO and not afterwards . MarketCap and supply / demand factors are only for the coins which are listed on the exchnage. For the ICO ones, the dev himself set the price depending upon the coin supply and the projects which he has in his mind to promote the coin.
Too high a pirce at ICO will give very little investment and too low a price will make the coin useless. The price should be carefully determine in ICO so  that if can retain its value after the ICO as well.

Initially it is whatever the ICO price is set for. by the devs.

Then the market takes over and price is established based on supply and demand.

I am curious though about the relationship between ICO price and the final market price.  Will the ICO price have an impact on the market cap a few months or years down the line?

I am a little skeptical.  There is definitely psychological differences between paying 1$ for 10000 coins or for 1 coin.  But overall the concentration of tokenholders would be the same - everyone would control the same amount of value..  It seems 1$=1 is also somewhat arbitrarily established.

Its price is based on demand. If demand is definitely high, its low price is also low. We hold investors for the price of a single currency. What you should not do is sell it immediately because it affects the price of coins. That may fall and result in panic selling.

the course is determined only speculatively
and nothing else
Although the attempt to set a course can be and the creators
but all the same everything will be decided at the entrance to the auction on the exchange

The developers set the initial price during ICO,and after that the bounty hunters an investors will decide how much will it be,law of supply and demand.

The price will be discussed by the project team and given a specific number. From the total supply and fundraising amount that the project wants to achieve will give you the price of the coin.

It doesn't matter the age of a coin in the market, it's always a matter of supply and demand, even at the beginning.
The demand, in turn, will depend on marketing, development and usage.

The free market decides the price of the coin. Initially, the ones building the project themselves set a price so they can collect BTC/ETH during the token sale, but once it's released on the market it's up to the invisible hand to price it right.

Speculating is a factor only, the rest is about the money that project collected and the latest news about it. Buyers and sellers on the market, when the coin hits the exchange for the first time, determine their positions according to these things.

The marketcap and the amount of coins that is being placed on an exchange is how the price is calculated.

Before the ICO it is decided by the persons who created the coin, they can set whatever value they want and then people will either buy it or not. Once free market forces of supply and demand come in to play the price will go up or down depending.