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Author Topic: How to know if a coin is overvalued?  (Read 237 times)
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April 30, 2018, 12:47:10 PM
 #21

technically speaking value is based on supply and demand and since altcoins usually have ridiculously huge supplies but no use cases that can create any demand for them, they are all considered overvalued.

but in a manipulated market where prices go up and down based on pumps and dumps respectively the value has a slightly different meaning when it comes to short term. it is based on how much money is being injected in said altcoin and that comes from their hypes and the pumping team and possibly other teams behind it. and it can be noticed based on the volume drops and the media hype drops.

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April 30, 2018, 01:32:29 PM
 #22

Most likely, you need a system analysis of each individual project. a simple analysis of the chart of the exchange will not help here. With a token, this is a little easier, in their case it is enough to analyze the project itself and its prospects. As a rule, the goals of developers are transparent even during the launch phase



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April 30, 2018, 01:38:04 PM
 #23

How do I know if some altcoin is overvalued. Can currencies be more valued than platforms than tokens? Are they valued after how much they are used in real life?
You can see it by checking its market circulating supply. When the market circulating supply has a large volume the coin should have less value and if the market circulating supply has a less volume the price value of a token should be higher. You can check it to know if its overvalued or not.

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April 30, 2018, 10:16:13 PM
 #24

If it has no working product and you can see that the team focuses on advertisment, then it is overvalued. Take for example EOS. It has only launched its testnet and its marketcap is in billions.

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April 30, 2018, 10:33:19 PM
 #25

You might consider a coin is overvalued when You can see the process on how the coin price is increased. When the price is increased significantly in a short time, but the market volume is just steady, it might be just a price manipulation. The volume should increase just as much as the price or even more.


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May 01, 2018, 10:27:05 AM
 #26


It can be seen on daily basis . An ordinary coin getting some huge value and still does not have a huge volume . That is when such things happen .
That is just for a short period of time and the sudden over value gets a big drop after a little time period . Also , if you look at the coin's features and compare its value you will be certain that the coin is over valued . On the other side , there are so many coins which should get amazing values due to their features.                                                                               

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May 01, 2018, 10:34:42 AM
 #27

How do I know if some altcoin is overvalued. Can currencies be more valued than platforms than tokens? Are they valued after how much they are used in real life?

That would be the pumped coin with artificial money being invested into it!
Take example of the BCC who turned out to be overvalued after they put huge amount of money into it and valued it more than it could have been. So yes there could be coins like that in the market but they dont exist for longer than enough.
Mostly such coins are tend to get scammed and thus they see the exit for themselves very early.

 
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May 01, 2018, 10:55:49 AM
 #28

It hard to evaluate most of the time. I usually evaluate by few factors: by comparing to similar other projects, by evaluating how big is the market for this particular project. If coin is not reacting well on the news and events this gives me a hint that it is probably overvalued. Some coins are overvalued since ICO, so for this coins its hard to get more value
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May 07, 2018, 06:03:27 AM
 #29

one of the reasons why cryptocurrencies are overpriced is when you try to check their trading volume because there are too many factors that makes a crypto coin to pump.
there are Pump and Dump groups that will cause other investors react of FOMO and then suddenly there would be a massive dump after few hours of pumping.
there are too many hypes that some celebrities are promoting various coins that will convince other investors to shift on that coin and suddenly after few days there will be again a massive dump.
for me, the only thing to check if the coin is over priced is checking on their trding volume.

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May 07, 2018, 06:07:17 AM
 #30

You might consider a coin is overvalued when You can see the process on how the coin price is increased. When the price is increased significantly in a short time, but the market volume is just steady, it might be just a price manipulation. The volume should increase just as much as the price or even more.

this statement is somehow true.
In my own understanding, people started to doubt for an altcoin to be an overpriced is when they don't believe a crypto project and it's supply and demand.
although trading volume could be a suspect but the moment the dev team are pushing their best to promote their crypto project to public then that will ignite the pump as people were trying to set on board before the coin price value will surge.

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May 07, 2018, 06:13:58 AM
 #31

I think the best way to know if a coin is overvalue is to look at the trading volume if it directly correlate with the price movement, if know actual demand for this coin then that means the market feel the current price is high and does not worth buying at that time, this happened to BTC, the volume was drying up but the price kept moving high before the price crash
I agree to you with what you said, to know if the coin is overvalue is only by checking the volume in the market which means during the ICO stage to know is not possible because everything is just all about the concept, white paper and the road map. Although the project may seems like a promising project this doesn't enough to conclude.
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May 07, 2018, 06:18:53 AM
 #32

See the max supply of coin and previous trading volume . If any pump happened then check the news related to coin follow their twitter , telegram find any latest news .If you find genuine reason then you can keep holding  Most of the time coins get pumps based on fake news or based on trading bot if you find take immidiately profit .
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May 07, 2018, 06:20:47 AM
 #33

I would say the best way to find out if a coin is worth too high is to look at the volume of trade if it is directly correlated with price movements, if you know the actual demand for this coin then it means the market feels the current price is high and not worth buying at that time. and is to check its total market value in Coinmarketcap then check the project if it has a product because some projects do not have a product but still with high value.

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May 07, 2018, 06:25:32 AM
 #34

one of the reasons why cryptocurrencies are overpriced is when you try to check their trading volume because there are too many factors that makes a crypto coin to pump.
there are Pump and Dump groups that will cause other investors react of FOMO and then suddenly there would be a massive dump after few hours of pumping.
there are too many hypes that some celebrities are promoting various coins that will convince other investors to shift on that coin and suddenly after few days there will be again a massive dump.
for me, the only thing to check if the coin is over priced is checking on their trding volume.
Trading volume does help in determining whether a particular coin is overvalued or not as you stated which is why i agree with what you stated. I have observed some lesser known coins and tokens with heavy trading volumes, but low values which puzzled me sometimes and understood later on that most of such coins and tokens were only being manipulated by pump and dump groups. Honestly, I almost fell for such P&D groups sometime back, but research helped me avoid such a mistake. Along with these factors, insane rallies by Bitcoin also tend to overvalue many coins and tokens like what happened last December.

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May 07, 2018, 06:28:41 AM
 #35

How do I know if some altcoin is overvalued. Can currencies be more valued than platforms than tokens? Are they valued after how much they are used in real life?

This question is somewhat difficult, but I will attempt to give the best answer I can. First a coin need to have real life use to determine its price through demand and supply, if the coin does not have a real life use  or a product that worth such demand placed on it, that means such coin is been hyped and will soon fall to its real price.
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