Bitcoin Forum

So it seems like almost every week or so, when i go check coinmarketcap.com, you see a random coin that you never seen before, suddenly make the top125 list in market cap.  Some of these coins even show up top 10 out of no where.  Then many eventually go all the way down the list but still are a high price.



First off, how do these coins suddenly appear from no where?  Were these coins even in the top 50 before they suddenly came in top 25?  Some examples are polkadot.  I saw it came weeks ago suddenly in top 10, now its still top 10.  How did this coin come out of no where?  Also, wrapped bitcoin?  That is over 10k a coin.  Where did that come from?  Also not long ago, a coin named hyperion suddenly was high up the list and stayed pretty high for weeks, then now suddenly its all the way like 100+ etc on the list.



So where do these coins suddenly come from?  Also, how would one be able to get up to date news on coins like this?  It seems like when a coin comes in the top out of no where, seems like for a few days, it keeps going up... then after a while it settles down and drops a lot back down.  So wouldn't it make sense if you see a coin make the top 25 out of nowhere, just buy it and then sell it once it hits a certain percentage of profit?  Of course that could already be the high.  But seems like these coins keep staying that price and higher for few days before dropping?

You should make questions about:

- Total supply: Check it from https://coinmarketcap.com/ or https://www.coingecko.com/en
- Current market price and their ICO/ IEO / crowdsale price: Higher or lower. If higher, how much higher the market price is?
- Look at the chart to see its trend and its volume

If a coin or a token has huge huge total supply it will be very normal to see it jumps to top 100 or top 50 on coinmarketcap ranking list because huge total supply x sudden rise of price (x5, x10) can help one coin join the top list.

Bad story is it won't last too long and you will see shit altcoins fall to the hell weeks or months later.

I know that your main concern was how possible for a new coin to enter the top coins list but remember about these coins were putting a very big supply as the total supply and then try to make the circulating supply became less and less. I meant the circulating supply in the market was very low and that makes the price of coins can worth a lot of money or even a few dollars for a single coin.
Those coins are using the trick to make it happen.

Great observation and question. Here is my reaction.

1. Creation of artificial Scarcity through the fixation of Coin supply could possibly lead to a rise in the demand and price of a particular coin.

When the DD>SS, you the price and popularity of a coin rise due to this disequilbrium situation.

2. What are the criteria for ranking coins.
Does organizations that rank coins also earn revenue to review some coins, which may biased their ranking?

Some of the latest addition on top 25 were defi based tokens thanks to the defi hype. But I don't think they will remain there for long as every hype is followed by a correction. There are more and more stable coins entering this list as there are many being issued mostly with an escrow from real currency so as to facilitate crypto trading. The wrapped btc is btc backed token and their cap comes within the cap of bitcoin as well. Adding them up would make the total marketcap unrealistic.

Wrap bitcoin into the top 20 because most people use it. Everyone needs bitcoin at erc20, so wbtc was created to strengthen the integration between ethereum and bitcoin. You can read more at https://wbtc.network/

Well this is the proof about our market being volatile,as what you said it grows up from nowhere and now taking the top list
there must be good reason for this right?


actually i'm sure all the coins you are asking are those from Defi projects?

in which make a great explosions this late 3rd quarter and still having movement till 4th quarter.



you should check them one by one instead of asking here,but 1 think i am sure off mate,that these increase will fade sooner and only few will
 remain on top not even 1/4 of those who are pumping now.

Its not a wonder that new coins suddenly raises and enters into the top list of coinmarket cap because even though it is new it might had lot of hype before it gets listed do people are more curious to buy that coin which suddenly ends up ending in chain reaction.But we can't consider it is a coin to invest only due to the price increase in quick time, need to wait for a while and see the coin is really able to hold that position or just short term hype.

Usually what happens is upon listing, some coins have a lot of hype behind them which will result in the price surge of the token which will give them a higher rank and market cap. After a couple of days when the hype slowly cools down the price drops which lowers their market cap and the rank.

One truth is that prices or value of cryptocurrencies as well as the market capitalisation of cryptos can be easily manipulated for a while to get the desired result for the developers and project owners. But this manipulations cannot stand the test of time. That explains why the value is only held up for a short while, after which they would go to where they really belong. One of the prevalent way of manipulations is restriction of circulating supply.

I was recently following a new project whose value was spiking after the tokensale and the project was listing across several exchanges, upon careful investigation, I found out that the tokens purchased by the investors are yet to be distributed and its been unduly delayed by the developers so as to get the desired result and get more persons to fall for the bait.

To be honest i also don't know about their algorthm (talking about cmc), but maybe some of the indicators like 24h volume, projects developments, partnership also the trend will make the chance to get into top 25 or top 10 more easier.

If the coins is not so popular and become one of the top crypto currency then this coins can easily be manipulated. Or owner of that coins want to sell it to more people so having in the top list will make it easily for them to notice by other investors you should also check the old graph how they are actually doing it and when they become so aggressive to pump the coins.

Many Crypto has ICOs before but they are only traded until the project has a product. I am not unfamiliar with such projects. They are very smart in implementing such a slow listing strategy.
Apart from Polkadot, we could see Filecoin, Tezos, Cosmos listing very late after the ICO. They do this to protect the value of the project from manipulation and the market goes down. The investors for these projects have reaped good returns.

I have noticed that there are 5 new coins that reached the latest top 50 ranking list:
1. Polkadot - Rank 8
2. Filecoin - Rank 28
3. Uniswap - Rank 34
4. Uma - Rank 38
5. Yearn Finance - Rank 40

Projects with full platform development and Hype defi have changed the list of top 50 coins before, each project appears in a different way but only projects whose products are already established survive market turmoil, because that hype will change as soon as the community gets fed up of It.

Marketcap = Supply x Price

https://coinmarketcap.com/coins/

Polkadot (Rank 6) : existing crypto coin that issued a denomination that increased its supply x100 and decreased its price x100 --> https://medium.com/@polkadotters/how-polkadot-token-denomination-is-going-to-affect-trading-e6dfae5c0d68
Filecoin (Rank 19) : new crypto coin that just launched its Mainnet --> https://decrypt.co/45013/crypto-exchanges-filecoin-mainnet-launch

https://coinmarketcap.com/tokens/

Uniswap : DeFi token (Rank 10)
Uma : DeFi token (Rank 13)
Yearn Finance : DeFi token (Rank 15)
 
Difference between coins and tokens :  

Coins have their own blockchain & have full control over their own fees and network.
Tokens are mostly depending on one specific blockchain (often Ethereum) and have no direct control over the fees and network. If that one specific network that so many token projects depend on is congested and unable to scale, then all those token projects will feel the negative effect of that as well (high fees).  

Comparing coins with tokens is like comparing apples with oranges.

They use some strategy for doing such things. First, they come with a mass supply of token, so they don't need to increase their tokens price to 1$, 0.001$ is too much for them when they have a mass supply of tokens. Second, sometimes they use the development news, maybe some exchange listing news so that they can get attention from their communities. ITs help them to create a hype and MM makes another push with it. But they can't stay long with this kind of strategy.

Market cap determines all these. that a coin make it to the top spot on coinmarketcap shows strong support from teams and community. we can not rule out fake volumes created by some exchanges that run bot trading. also volume of trades and different exchange listing can triggers high volumes on that particular token.

There are many coins which are suddenly boomed and placed themselves on top25. Among them, the Chainlink is the true and highly demanded project which is now in the 7th position and after this in the 8th position, Polkadot is trading at $3.94. One more coin is very challenging now is WBTC which is also in top25 in Coinmarketcap.

The simple formula when you mention marketcap is the circulating supply multiplied by the price of the coin/token. Therefore, in addition to large projects with huge initial investment capital, projects that self-issue tokens and list them on the exchange, with a very small number of holders, they can easily push their marketcap into top rank of coimarketcap.

To the best of my understanding, I believe the things that brings a coin up that much is either hype or they have a major development they are working on which attracted a lot of people. When it is based on hype, the coin will appear from no where because of massive attention but when that hype starts dropping the coin start dropping down the rank. But most coins which got to that level they are, maybe top 25 via having strong use case, they will be revolving round that range, that is, they might drop in rank and later still come up; this is what differentiates them from those that rosed with hype.
Additionally, a clear observations will show that most of those coins in top 25 got there during the DeFi hype, now the question is, how long will they stay there?
From another angle, the circulating supply of a coin can also take a coin to such rank (the lower the better) at the same time, the coins use case can also be a deciding entity to such actualization.

The rank on CMC is base on the marketcap, the larger they have the higher they rank up there. If there is a reason why the project is attractive to investors that it got a huge marketcap, it could be becaus the project is really good that can potentially outrank other coins when it reaches its potential.

Polkadot took a week before it was listed on CMC but it was ranking higher on coingecko. So the two ranking website does have different AI to get information and hype is just one factor.

These are some of the ICO/IEO tokens getting into the market, there are some good projects in 2018 like Filecoin also that just get listed in the market and there was a time it has more than $1 billion marketcap. I think your own concern should be if these tokens are good and if yes are they overvalued and if yes, then when can I get them when the price are cheap

In two cases, it is possible to see a new coin in the top 10 coinmarketcap list. First, the low supply and high price tag can cause a big interest which is equal to demand by investors. The second reason is the pump on the small exchanges with wash trading, the fake trading bots can fill the air inside that bubble until the coin gets on high-ranking altcoins listing. High-rank altcoins will be the choice of big boys, so I strongly suggest focusing on the low marketcap altcoins which promise a better return on the investment rate.

CMC has been using a very simple formula to calculate how much marketcap that has already achieved by the project. In fact if the marketcap has already calculated based on the current price of coin x total circulating supply of coins.
The majority of the coins were putting very high value will also get the big marketcap instantly.
I think that the partnership will not give any impact but the hype of coins will.

If people are still confusing about it, I can give them an example with RealTract (RET).

In July 2019, RET jumped to the top 100 on coinmarketcap with its price was about $0.006240. Five months later, in December of 2019, its price fell to the hell about $0.000346. More than 18 times of loss. Today there is nearly zero volume.
https://coinmarketcap.com/currencies/realtract/

You can see same losses or worse with DeFi tokens.

It is no coincidence that some altcoins appear in high positions on the rankings. The higher position shows the values ​​and beliefs of everyone about the project. Sometimes the position of the altcoins is due to the UX error interface or the manipulation of whales.
If you look carefully, the new projects appearing in large-cap coinmarketcap are quality projects that were ICOed a long time ago. Their strategy is to trade them with a specific product so as not to devalue the project. I appreciate their smarts, at least that project avoided manipulation and the market went down.

exactly because investors usually betting  on those coins that has a good movement so having them grows high is the more attractive for the investors are.
so basically they will put money and wait for more growth and will take off when the value starts to fall bad.
sometimes whales has a big part on this because they are the reason of hyping.
That Polkadot really shocks me seeing how great it works for the past weeks considering that CMC is the most popular one for them to be
listed yet they made a bull running without them listed.

Top 25 coins on coinmarketcap are the most tough in terms of volume trading and price. It's hard to replace such coin in top 25 with a new elevated coin. Most investors stick to these coins for investment since it is good in long term investments. But it is also possible for a new coin to be added to the top 25 spot in marketcap list, however it is hard to go with the top.

different token might have with distinct on customs as pupils with the funds of equity follows of confinement with personal strategy as appealing with supports on return with the manag e of evaluation, to gains as least on risks with decision as disputing funds for developer.

In my opinion, I do agree with most of the people here who say that the new coins were basically going to a hype phase that is why it starts very high on the list. You all know what happens when a coin is very popular in its early stages, many want to get a piece of it and after a few months, then it will now go to something like a correction phase wherein the market will even out and will determine if this coin will survive or will fail. In my opinion though I would still bet my money to the top old timers like Bitcoin and Ethereum and also some of the good alts as well.

The same happened with coins such as Cardano (ADA), Tron (TRX), IOTA and NEO. None of these coins are now in the top-10 list, and many of those invested in them accrued heavy losses. ADA for example has lost almost 99% of its value from the ATH levels. I don't know how coins such as Chainlink and Polkadot will perform in the future. But at the current levels, they look extremely over-priced for me.

I think it is still possible, just look at the uniswap coin UNI. I think Uniswap is count as a new altcoin.
New coin such as UNI is very rare, it is already reached rank 30++ on coinmarketcap.
This is the proof that new altcoin still have possibility to make it reached the position among top coins.

I think they are looking into CMC a lot as well, because you can have like a billion dollar coin if you want to, as long as there is just 10 people who are buying and selling and they are all in the project that means they can fake a 100+ billion dollar market cap if they want to, which cmc can't allow it to happen which is why it is important to vet all these altcoins very carefully about how much the volume is, what the marketcap is, what the price is but at the same time about the liquidity as well.

CMC when exchanged hands and became binance's thing it became really important to care about the liquidity as well. With that changed the lists became a lot more realistic, it is not like the old CMC when even the silliest things could have shot up high for a day or two but with fake movements.

Any other ways of this besides looking at coinmarketcap?

Is it possible to happen? If this is possible, how this can happen if the coin/token is just recently introduced on the market. Its credibility, effectiveness and popularity in the market are not yet build that is why I find it difficult to happen.

I did research for 5 month xsl labs project and finally i convinced my self thats this project wil make it to top 25 in 2021 or next year when the SID apps is launch. I believe in their team that they could make this project succeed. Many french crypto community support them, old people and new comer.

EJIN coin has been pretty good for ;)

This is always the story with huge supply coin so when I see them at the top, I understand exactly what is to happen soon. Except with few that has made their way to top 10, like bnb polkadot, some of the coins will settle back to their place.

Majority of those coins on top 20 are old coins and few are new ones with different network or chain. This year is the surge of defi's and nft's the new trend that is why new coins comes from these kind of projects. Bnb made it to the top 4 and also polkadot has shown good performance at top 6.

Basically it's all about how much its price plus its circulation.
Out of nowhere? There's possibility that it is all due to hype that's why these coins pop up out of nowhere.
Like those pump and dump schemes though I won't conclude that all of those that are way below top 10 just yet.
These coins in the top 10 still somehow manage to standup to their own area.
We'll see in few weeks if those <top 10 will still stay though.

I am not following the market for sometime and if i look at the top coins in the market i am seeing new coins and the old coins are replaced by them and this is not surprising but i am surprised to see many new coins in the top list. I never expected BNB to be in the list when there are much better coin in the market and yet they were able to be in the top list.