LOW CIRCULATION COMPARE TO TOTAL SUPPLY.

[BrewMaster]

short answer: market cap

lets say you have 100 apples and put all in circulation. now if 1 apple is worth $1 then the true market capitalization of apples is $100 (supply * price).
now lets say you have 100 apples but only put 10 of them in circulation. now if 1 apple is worth $1 you still get the same market capitalization of $100 but it is fake because the real market cap is $10

Is this really true? I used to know that Circulating Supply determines the market cap. Look at Zcash- https://coinmarketcap.com/currencies/zcash/
The maximum supply of Zcash is 21,000,000 ZEC but the circulating supply is 9,110,906 ZEC. As per current price, Circulating Supply * Current Price = $557,634,432 which is the current Market Cap of Zcash. I don't know where you get this or what I'm missing.

you are still correct, the "circulating" supply is used in calculation of market cap not the total supply. you didn't need to go that far either, you can look at the first in the list (bitcoin) and see the circulating supply is used instead of the 21 million cap.

BUT the problem is with fake circulating supply. take one of the biggest shitcoins called XRP for example. a huge percentage of the supply they claimed to be "circulating" is instead locked up in their own wallets. so it is unreal. a lot of others like ethereum are also like this with huge premines.

[Pffrt]

you are still correct, the "circulating" supply is used in calculation of market cap not the total supply. you didn't need to go that far either, you can look at the first in the list (bitcoin) and see the circulating supply is used instead of the 21 million cap.

BUT the problem is with fake circulating supply. take one of the biggest shitcoins called XRP for example. a huge percentage of the supply they claimed to be "circulating" is instead locked up in their own wallets. so it is unreal. a lot of others like ethereum are also like this with huge premines.

Thank for the nice explanation. I didn't think that way. You are correct that projects are manipulating the circulating supply to increase the mcap which I was aware of but missed your point.

[rabbitfairferry]

The other issue is that people just want to hoard their stash and not spend thinking their coins would rise up in value to the heavens. This further reduces the circulating supply.

Another issue is the people who invested early and then lost access to their funds like this guy: https://www.independent.co.uk/life-style/gadgets-and-tech/news/bitcoin-value-james-howells-newport-landfill-hard-drive-campbell-simpson-laszlo-hanyecz-a8091371.html

Once again it reduces the circulating supply.

[Goodvalony]

Maybe for future giveaways like when launching into a new exchange. Marketing campaign and future bounties.  there are many projects with huge amount their total supply token Locked up. those i am not aware what there plans and intention are. Maybe a way to sell off to a new investor that might be interested in the project.

[Goodvalony]

i can only say that project needs to hold back a high percentage of their token to reduce excess supply which might lead to low price. i think project owners are scared of releasing a huge quantity of tokens to the market in fear of dumping and liquidation.
Most projects that has a high percentage of their token in the market has already gain ground and a steady market. such supply is been noticed on New projects that are yet to have a huge market.  Nobody wants to loose his business.