trademindxofficial (OP)
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March 14, 2018, 08:46:49 AM |
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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.
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Muruga
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March 14, 2018, 09:56:39 AM |
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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.
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BQ
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March 14, 2018, 10:01:33 AM |
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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?
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Valermos
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March 14, 2018, 10:04:48 AM |
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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.
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trademindxofficial (OP)
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March 14, 2018, 06:17:23 PM |
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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.
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fetokun
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March 14, 2018, 06:19:45 PM |
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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.
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lizardbtc
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March 14, 2018, 06:20:52 PM |
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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.
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. |
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cryptocrusher
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March 14, 2018, 06:21:18 PM |
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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.
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. |
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cdb1690
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March 14, 2018, 06:50:33 PM |
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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.
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. |
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jpoker272727
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March 14, 2018, 06:54:27 PM
Last edit: April 18, 2018, 09:51:25 AM by jpoker272727 |
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IsuruMaduranga
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March 14, 2018, 06:56:59 PM |
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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.. |
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solarion
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March 14, 2018, 07:10:38 PM |
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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.
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. |
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rockyfeller
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March 14, 2018, 07:28:03 PM |
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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.
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trademindxofficial (OP)
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March 15, 2018, 09:11:21 AM |
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Thanks alot for the feedback - really informative. Much clearer how it works with respect to price when the token/coin goes on exchange!
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VanDeinsberg12
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March 15, 2018, 09:23:07 AM |
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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.
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. |
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boss82_big
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March 15, 2018, 09:30:26 AM |
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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.
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Ostonian
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March 15, 2018, 10:30:41 AM |
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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.
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hakatu
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March 15, 2018, 10:37:20 AM |
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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.
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. |
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Caladonian
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March 15, 2018, 10:48:49 AM |
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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.
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. |
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talkbitcoin
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March 15, 2018, 11:07:59 AM |
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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.
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