Bitcoin Forum

Hey guys,

Question I have is: once an ICO is over and later an ALT coin/token gets listed on exchange, how is the price of the ALT determined?

Is there for example a formula that is used by exchanges based on ICO sale price or is it just pure supply/demand? So in the case of the latter, does the exchange simply list the coin and let the buy/sell orders drive the price?

Also to add to this question, if an ICO decided to give away ALL it's coins/tokens as an airdrop, can it still be listed on exchange? Or that would not be possible?

Look forward to feedback on this.

I think the initiators of the ICO project set the initial price themselves. Then traders on the crypto exchange start to raise or lower it.
This is clearly seen on decentralized exchanges, where the difference between buying and selling can be hundreds of percent.

but someone has to do the first sell/buy anyway? if someone buys from an ICO at $1 and then later on is the first to sell at an exchange for $1.5, that'd set the price?

I think that ICO team do benchmark of their project and set the first price. Then the trades start and the market makes the price due to demand and sell offer.

Got it - so sounds like it is just pure supply and demand then. When it gets listed on exchange people holding the coin/token just come on and place sell orders and if people buy then that is the starting price and it just goes from there.

The price is determined mostly by the demand for that alt. If many people missed out on the ICO and want to still get in, then they drive the price upwards.

Price is deteermend by supply and demand. If you pay attention closly most of tokens when get listed have dips if not huge dump, because people who got in early are selling their bags. Later down the road when project of ICO company gets lunched and if it is a good one price can move up. If tokens were airdroped it is possible to create value for those tokens, why not? As this is even how bitcoin gained value. However if you opt for ethereum tokens there are DEXes built around it which means that your tokens will be listed like automaticly such as on etherdelta - tho it may take longer for price to move up all depends on your project.

It's a free market so it's entirely supply and demand. There might be some market making at play depending on where they list. Sometimes the ICO must give up some coins to the exchange to allow them to market make. This means they'll put orders at either side of the order book but mostly they won't be filled.

Matching platform works by matching buying and selling orders of their users. There's no need for some sort of algorithm on exchange side to determine price of an asset in any point in time including the first time asset is listed on an exchange.

Knowing one of the first is the key to make money!

When a coin get listed in a exchange a initial price can be set. It can be 0$ if wants.

Think a coin is listed in a exchange initial price of 0$.

Peron A wants to buy 10 coins at 0$ but token holders B,C,D (each one have 100 coins) don't like to sell at that price.

B likes to sell for 0.5 $ , C - 0.75$ , D - 1$.
So A buy from B by giving 0.5$ for each because it is the lowest price he can get. Now the price of the coin is 0.5$

Now think,C wants some quick money and he is ready to sell 50 coins at 0.25$.
Person E came and he buys 50 coins at 0.25$. Now the price of the  coin is 0.25$.


Just like that..  :)
Price depends on the demand.

Hope it helps..  :) :) :)

First tokens will be distributed once the token sale is completed. Then with in some weeks of month of time tokens will be added to exchanges. If the project is fake we may not expect that token to be listed on the exchanges.
Every exchange wise they have the norms to add the token to exchanges then they can added by the project manager or owner.
You can check on coinmarketcap to find the token has been listed on exchange or not.

Okay the price determine on people,group or community that supports the project sometimes altcoins are hyping on social networking site. But just to let you know that if the market is bullish probably the price goes up and the good point here is if alts listed on many exchange then expect that this coins has very bright future to hold on.

Thanks alot for the feedback - really informative. Much clearer how it works with respect to price when the token/coin goes on exchange!

It's just pure supply and demand, if you are seeing the developer already putted the fixed price for altcoins but that doesn't work because the market will try to decided it. Exchange just try to list it, seller and buyer will try to determine the real price for each token. 

It can, just like EBTC token.

It all depends on the project and its team, everything acts on a customary basis, the team sets its price and offers it to the exchanges and they already understand and then set the bigger price or vice versa less.

Initially, after the coin on the exchange, the price is set, as in the conduct of the ICO. And then the people themselves form the price. People artificially inflate the price. If there is a great demand for a coin, then the price will grow accordingly.

The price is determined by the demand of the market. The exchange initial price has no meaning.
For the second question you could take a look at Bitcoin cash, Bitcoin gold, Ontology. All have been doing really well on the market. In fact the airdrop of 1000 ONT for subscribers turned into the price of 1 BTC.

If the project is not really usable then we will see an artificial pumped, but if the project really have a room to grow then eventually it will be
determine with supply and demand, it's hard to predict what will be the fate of those  new ico coins as the market showed unstable, better to
assess wisely and always aimed for gains and not be bothered in any situations that will lead your investment in a big loses.

first by the owners of the altcoin. if they are good at what they are doing and are capable of manipulating the market they can easily manipulate the price too and make it stay up at a much higher price than the value of their shitcoin. if they are not, the coin simply dies in the first day.

second is by supply and demand which will happen after this. again if the owners are good they can manipulate things more and try and keep the price of their shitcoin up but generally they will drop because there is no demand for any of these coins and there is a huge supply of each of them which will be dumped on the market.

Thanks have not heard of Ontology - will look into! Sounds exactly what I'm looking for.

Usually the dev  or the team set the ICO price on the exchange and let the market or the traders decide whether they will dump it or they will pump it. If the demand is good it will probably pump specially  if it has small supply.

If the new token after ICO first enters the exchange, its initial price is set by the ICO command. However, then the price of this token is formed solely on the basis of supply and demand. And constantly the price is influenced by various factors. If the ICO project is still unfolding, then the price of the token will only increase with time.

it took me a while to figure it out i think the price is determined of how much peope buy and sell the coin and the idea of the project.

For a currency to have value, it needs two important things: first, long-term sustainability through portfolios and users who are buying and selling digital currency in exchanges while using storage methods to maintain their currencies, is the classic offer and demand for the coins. And second, Business / Usability, if a company accepts a cryptocurrency as a form of payment, this gives usability, that is, these currencies are an exchange of value. If your currency complies with these characteristics your demand will increase by determining your price upwards or the opposite may occur, therefore the price is not determined by the exchange.

it based on the seller and buyers decision.
People are setting the price of any token in the market, it is based on the supply and demand.

There is no exact basis for the rise and fall! Everything according to market rules! Another part is that the "shark" manipulates the market!
But I always believe the digital money market will grow in the near future!

Answering second one, I think that an ICO that is doing that, instead of burning coin are devaluating them, because of dump

The price is determined by supply-demand as it is said in friends. But I think the team that sells tokens is buying at a certain price so that they can fall in price. In this way they prevent their token from depreciating to a certain level.

I think if ico succeeds and alt gets list exchange. Their price is very high, because many people know it is the best way

Everything depends heavily on the state of the market, if it is on the rise, when the token is listed on the exchange, it can cost more than the price on the ICO was, when the market is in the price can be often lower, also it depends when the tokens for the bounty company where distributed, usually the price of the token is peaked a few days after the listing, and then everyone forgets about the token and the next pump will happen only after good news or a list on a new exchange.

You'll notice that once coins get listed on an exchange, their starting price is often WAY higher than the price they end up dropping to. I think a lot of people just dump their coins on the first chance they can get, which is when it is released on an exchange. Very rarely will there be a coin that get listed that doesn't immediately see a massive drop in price.

There is an initial price specified in ICO, but when the coin goes to the exchange, the price is less and then if the coin or token is in demand then it starts to increase..

In my opinion, price is based on the first decision of ICO's campaign and it is rising or falling in accordance to the current results of going on project.

I believe they must have a set of standard that determines the price of coins. Later the usefulness of the alt coin can greatly contribute to its price. If you look at the market today,  you will notice that some altcoin keep falling in price on a daily basis, but in that same market you find out some coins are growing at a high speed.

I would say the opening price should open up at the last ICO price that was used.  This should make a smooth transition over to the exchange trading.  I know on day 1 its usually a wild ride.  Spike up (sometimes huge) follwed by a sharp down. 

The coin comes to the exchanges with the price that was on the ico, the price already depends on the purchases, sales of the coin and on the volume

There are many factors of this determination and everything depends on the alternative cryptocurrency and exchange there. I think that there is not the right answer without information.

I think prices were initially determined by ICO suppliers, but price increases were reduced by supply and demand.

Once the altcoin is on the exchange its price is determined by the buying and selling of the coins by the consumers and the company itself plays no role in its determination of price though there exist entities in the market like market markers who regulate the market and determine coin price.

The initial coin listing price should be fixed by the coin’s owner. After that, the buyers and sellers of the exchanges set the price depending on the price they are willing to buy and sell.

Whatever or whoever to set the price of any alternative coins at first, the next hours or minutes will be on the seller and buyers decision.

price is determined by sellers and buyers. starting price is set by the owner and then buyers/sellers decide where it goes from there.  sometimes there is wall to keep it from falling below ico price sometimes there isn't and market completely decides the future. generally doesn't happen since no one wants to see their alt going down the drain but sometimes it does depending on your choice.

When they benchmark, they need a standard or something to look at right? Then what if their project is completely unique or the system is nothing like any of the ones in the market? How will they determine its value?

Mostly the people creating the icos have the price that they have put on it before they started selling the coins which they refer to as the ico price but once the coins hit the exchanges then it is the people that are buying and selling the coins that are determining the price from then on out. The traders are very important because it is with trade volumes that the price of the coins move.

Im not sure but i think it can be determined from its ICO price as well as market capital of the project itself. What mostly happens id hat, tokens with high market cap are having low market value. Also, when the ICO rice is 20usd, expect that its market value will be around 10usd. If you may observe these are just mere observations. I think a coin would still be listed without project but ofcourse it wont be as that popular.

yes, after the token gets listed generally the value starts fluctuating like the rest of the cryptos, depends on the demand and supply of it.

For your first question, I think you've answered it yourself. Demand and supply, which is buy and sell orders. The issue of air dropping all tokens and then listing it on an exchange. This will demand the team to pay for the tokens their airdropping, the total amount the team pays for the token will invariably determine the value of the airdropped tokens on any exchange. If not, the token will be valueless and can't be listed on any exchange.

From the ICO price, the rest of the price of a coin is determined by the market forces of demand and supply. If the market sees value in the coin, it will definitely cause a huge demand for it and therefore cause the price to spike, vice versa.

You will never determine the price in the market because it was based on supply and demand, obviously the value of coins will decrease because there are a lot of people who prefer selling their bounty rewards in order to earn profit immediately.

price it is determined by the supply and demand. price may go up or down depending on the project if it is really useful. there are many coins that drop below ICO price and never recover all because of the project itself.

Just pure supply&demand. And, about AltCoin full airdrop it will be listed on exchange becaue apply listing for community voting. this is a great start to make AltCoin full airdrop more valuable. If it's already listed on more exchange because of community vote listing. Dev can purchase listing to big exchange with circulating coin reserved team. *Just my opinion

Guess the Exchange price of Cryptocurrencies are based mostly on their demands. If a Coin has irresistible potential,  it will be in high demand and the value will further increase.  If it  has little potential and the quality is low, most people will dump it and the price will fall. Though dumping of coins immediately after listing on exchange or airdrop distribution don't usually determine the potential/quantity of a Cryptocurrency. The dumper are there for short-term gains or they don't care about the project.

the price obey to the law of the market bids and asks mechanism is the law there to fix the price but in bancor my favorite exchange the price is tied to the reserve value good luck

The Project determined by how many community they had. Supporting their current project which is exciting for holders. Usually if they have real use cases then price could jump up big!

Nope. We can calculate by the amount of money which they raised through ICO. If they reached hardcap or nearly that cap, we can use pice in Private Sale with bonus, if not, i think it can be divided 5 or 10 times.

To determine price of altcoin when listed on exchange, no formula use in setting price, the only formula is set by price place by buyer and seller in other world demand and supply.

The price of the altcoin that get listed on exchange is determined only by on factor - demand. If there's a demand for the coin it will go up in price and vice versa. The last question is a nonsense because there is no economic reason in that case.

The price of altcoin is determined by the traders on exchange. No matter the price of token set by a particular project, the price is determined by the buyers and sellers on the exchange.

People are almost setting the price of any token in the market, it's based on the supply and demand.
As we can see into the market, price is really volatile and we can watch it while climbing up because buyers are thinking to get it much cheaper while the fall is just heavy sometimes as many holders are going to look for a fast money and selling their belongings even at low.

The price should be determined by demand and supply. This is the only indicator, I don't know something else.
In some cases devs launch bot supporting price on a certain level, but it isn't legit