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Author Topic: Token price formation [Explain me]  (Read 126 times)
fakefrombot (OP)
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July 23, 2020, 09:28:09 PM
 #1

Hello,

I am asking you for explaining me one simple thing: how is token price forming? Which formula can help me with calculation of token price basis on its capitalization? Because as I understand token price raises and falls because of capitalization raising or falling, right?

Let’s imagine that I will create my own token related to future product which people will buy for that token.
I will generate token with start price 1 ETH per 10 TOKENS and supply would be 10,000,000 TOKENS. So after investors buy all that token its capitalization will 1,000,000 ETH. And price 0.1 ETH per 1 TOKEN (27$ basis on actual price).

And for example after this its gonna be listed on exchange like binance. How can I calculate price changing if say somebody buy that token on another 100 eth? In other words: give me formula or algorithms which are used on exchanges for calculating tokens price changing. I dont want to learn how markets works because I want to have just simple understanding of it so please do not redirect me on stock market books etc. Just explain me in simple words and give mathematical formula which helps me with price calculation basis on capitalization changing, etc.

Maybe there are any scripts or programs where I can simply enter some parameters and it will automatically predict me price?  Roll Eyes
cryptonx
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July 23, 2020, 09:54:13 PM
 #2

as i knew, the price created by buyers and sellers my friend
wich mean, if the buyers more than the sellers, for sure the price will going up
but, if the sellers more than the buyers, the price will going down,
so, its not depends the exchange, but the traders

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Oilacris
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July 23, 2020, 09:59:23 PM
 #3

You can eventually answer up your own question on just looking up on Coinmarketcap.com website..

When it comes to total cap then it would vary on the current token/coin price in the market and the price or value of it would be depending on the demand itself and as mentioned

above this do matter in that simple or basic law of supply and demand. You cant just expect that ICO price of your token will be permanent.

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July 23, 2020, 11:59:15 PM
 #4

as i knew, the price created by buyers and sellers my friend
wich mean, if the buyers more than the sellers, for sure the price will going up
but, if the sellers more than the buyers, the price will going down,
so, its not depends the exchange, but the traders


Panic sellers kept pulling down the price of a token specially during project launch. Most of these scenario happened on an ICO projects that has no concrete community support. Greedy members usually dump their asset, without thinking the potential capability of a coin. Price will only become sustainable when there's bullrun happening, but it's not possible while sellers can't handle pressures in trading.
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July 24, 2020, 11:36:09 AM
 #5

Still waiting for more concrete answer with mathematical formula and digits. Not just words guys... Smiley
Fakhrulenclix
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July 24, 2020, 01:48:01 PM
 #6

There is no mathematical formula which can helps you with price calculation. Because price is about demand and supplay.
For example bitcoin with max supplay 21Million and we know the price around $9,5K and Bitcoin cash with same max supplay but the price only around $230. How can you give formula with that?? So the answers is demand.
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July 24, 2020, 02:01:20 PM
 #7

There is no mathematical formula which can helps you with price calculation. Because price is about demand and supplay.
For example bitcoin with max supplay 21Million and we know the price around $9,5K and Bitcoin cash with same max supplay but the price only around $230. How can you give formula with that?? So the answers is demand.

Lol ofcourse there is formula. Bitcoin costs 9,500 because its capitalization $175,319,024,151 USD and BCH have capitalization just only $4,329,229,131 USD therefore its costs just 234$  Smiley Though people here understand how market works but you dont. Anyway hope that expert with knowledge will see that topic and give the formulas.
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July 24, 2020, 02:51:31 PM
 #8

I don't have a formula but it must depend to your token supply and the law of supply and demand. The price is indefinite and it gets higher depending to the buyers and demand of your token. So if the valuation after the launching for example is $10 per token.

If it's a token that's very promising and there's a real use, investors would even want to buy it $11, $12 or higher prices than that and so on. It's like an auction and whoever sold at the high price will now wait until it drops. Once the demand gets lower, there goes the low ballers. As long as  there's an economy for your token, valuation is undetermined.

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Fakhrulenclix
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July 25, 2020, 07:17:44 AM
 #9

Lol ofcourse there is formula. Bitcoin costs 9,500 because its capitalization $175,319,024,151 USD and BCH have capitalization just only $4,329,229,131 USD therefore its costs just 234$  Smiley Though people here understand how market works but you dont. Anyway hope that expert with knowledge will see that topic and give the formulas.
Lol too,Do you think what the diffrent between BTC and BCH so capitalization can be different?? Technology??, Supplay?? or what?? The capitalization can be diffrent because demand for both is different. So many people want to buy bitcoin rather than BCH and make capitalization can reach $176,687,774,814

Techonoly, supplay, team, and anything is influential but the most influential is demand. But if you say there is a formula. I hope you find it Wink
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July 25, 2020, 10:24:30 AM
Last edit: July 25, 2020, 11:01:09 AM by fakefrombot
 #10

Lol ofcourse there is formula. Bitcoin costs 9,500 because its capitalization $175,319,024,151 USD and BCH have capitalization just only $4,329,229,131 USD therefore its costs just 234$  Smiley Though people here understand how market works but you dont. Anyway hope that expert with knowledge will see that topic and give the formulas.
Lol too,Do you think what the diffrent between BTC and BCH so capitalization can be different?? Technology??, Supplay?? or what?? The capitalization can be diffrent because demand for both is different. So many people want to buy bitcoin rather than BCH and make capitalization can reach $176,687,774,814

Techonoly, supplay, team, and anything is influential but the most influential is demand. But if you say there is a formula. I hope you find it Wink

Another one nonsense message. I found of course formula because I have brain: if you divide $ capitalization on supply you got actual price. For example current capitalization of BCH is 4,468,878,288 and its supply 18,471,463. Price will be: 4,468,878,288 / 18,471,463 = 242$ (its price on exchanges). This is the formula I was asking for. I also made a formula for forecasting price basis on buy/sell orders (for example to calculate how will affect on price sell order for say 1,000,000$). But the second formula is too complicated for you so I will not share it here.Smiley
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