A question on value

[Kojo2808]

I’m new to this so might be a silly question but why are some coins expensive from launch? Like from $1 an counting where as others launch at 0.000+. And some coins backed by so called “low rent rip off” companies (pancakeswap) have currencies that reflect  the former coin and “respectable” companies (Cripto.com) have coins that reflect the latter.

Hope that makes sense apologies if it doesn’t

[1715594997]

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[1715594997]

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[1715594997]

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[tyz]

I’m new to this so might be a silly question but why are some coins expensive from launch? Like from $1 an counting where as others launch at 0.000+. And some coins backed by so called “low rent rip off” companies (pancakeswap) have currencies that reflect  the former coin and “respectable” companies (Cripto.com) have coins that reflect the latter.

Hope that makes sense apologies if it doesn’t

Simply answer! Demand, scarcity and great promises. This is the mix that causes many people to pay horrendous prices for new projects.

Demand:
Especially in times like these, many new investors come into the crypto space. Many are looking for the next Bitcoin where they can multiply their stake 100x or 1000x. Therefore, everything is bought that seems somehow exciting and "cheap".

Scarcity:
The quantity is often very scarce in new projects, which artificially increases the market capitalization and the coin price. For example, if there are max 100 million coins, then only 20 million are sold in the crowdsale, the rest then flows into any development, marketing funds, etc.

Promise:
It initially promised so much. With possible market shares in 10 years advertised etc.pp. which blinds many, although these are often simply fantasy figures or refers to unprofessional studies.

[livingfree]

Simply answer! Demand, scarcity and great promises. This is the mix that causes many people to pay horrendous prices for new projects.

This is true.

As for the scarcity, it is because of the supply limit of those coins. The lower the supply, the higher the price that it will have during their launch. But that doesn't mean that it will stay high forever if the development starts to be off and dry.

But if it's a continuous development, the price increase is inevitable.

[hugeblack]

The quantity supplied is what determines the price, for example we have banknotes bearing a lot of thousands and others with a few zeros.
What matters to making profits is the amount of volatility that appears in the currency.
Some currencies tend to be above $ 1 because a rise from $ 1 to $ 100 will attract a lot of investors other than rising from .001 to 0.1 who represent the same amount of increase.

Some currencies have modified how the currency is calculated and changed some zeros, such as:

Pundi X[old] price ----> $0.003382 ---> https://coinmarketcap.com/currencies/pundi-x/
Pundi X price ----> $3.382 ----> https://www.coingecko.com/en/coins/pundi-x-new

[H1N1]

I’m new to this so might be a silly question but why are some coins expensive from launch? Like from $1 an counting where as others launch at 0.000+. And some coins backed by so called “low rent rip off” companies (pancakeswap) have currencies that reflect  the former coin and “respectable” companies (Cripto.com) have coins that reflect the latter.

Hope that makes sense apologies if it doesn’t

We shouldn't look only the price but every aspects of the coin such as total supply of the coin, and total coin for sale, % allocation of the coin, etc. Some coin could launch at $1 / coin because the coin supply is low. On pancakeswap, there are many tokens launch at initial price like 0.0000~~ because the supply of the coin is more than trillions, or maybe quadrillions.

[kidbounty]

I’m new to this so might be a silly question but why are some coins expensive from launch? Like from $1 an counting where as others launch at 0.000+. And some coins backed by so called “low rent rip off” companies (pancakeswap) have currencies that reflect  the former coin and “respectable” companies (Cripto.com) have coins that reflect the latter.

Hope that makes sense apologies if it doesn’t

Simply answer! Demand, scarcity and great promises. This is the mix that causes many people to pay horrendous prices for new projects.

Demand:
Especially in times like these, many new investors come into the crypto space. Many are looking for the next Bitcoin where they can multiply their stake 100x or 1000x. Therefore, everything is bought that seems somehow exciting and "cheap".

Scarcity:
The quantity is often very scarce in new projects, which artificially increases the market capitalization and the coin price. For example, if there are max 100 million coins, then only 20 million are sold in the crowdsale, the rest then flows into any development, marketing funds, etc.

Promise:
It initially promised so much. With possible market shares in 10 years advertised etc.pp. which blinds many, although these are often simply fantasy figures or refers to unprofessional studies.

Yes you're right. this is the reason why people are willing to spend money on things that are risky. and another hype, they believe investing in a popular project will pay them big returns.

[Coin_trader]

I’m new to this so might be a silly question but why are some coins expensive from launch? Like from $1 an counting where as others launch at 0.000+. And some coins backed by so called “low rent rip off” companies (pancakeswap) have currencies that reflect  the former coin and “respectable” companies (Cripto.com) have coins that reflect the latter.

Hope that makes sense apologies if it doesn’t

We shouldn't look only the price but every aspects of the coin such as total supply of the coin, and total coin for sale, % allocation of the coin, etc. Some coin could launch at $1 / coin because the coin supply is low. On pancakeswap, there are many tokens launch at initial price like 0.0000~~ because the supply of the coin is more than trillions, or maybe quadrillions.

Yeah. The supply and the utility of the coin dictates what the price per token but the circulating supply is the main criteria where the price was base. The future value will derive from its utility and the usability of the product itself.

The best example here is YFI, Due to limited supply, The price per token was so expensive even during token sale compared to XRP which has a billion supply that's why its price was very cheap

[RussianEnglishTranslation]

Token supply, utility, demand

[FanEagle]

I’m new to this so might be a silly question but why are some coins expensive from launch? Like from $1 an counting where as others launch at 0.000+. And some coins backed by so called “low rent rip off” companies (pancakeswap) have currencies that reflect  the former coin and “respectable” companies (Cripto.com) have coins that reflect the latter.

Launching price is something you may start at anywhere but it will be pumped or dumped according to the demand and supply. I have seen many coins that have been started with below one cent price levels and over the time due to showing progressive developments slowly attaining more than $10 value but at the same time coins which have started for more than 1 BTC value, slowly got dumped and then got delisted from exchanges as well.

If you notice some coins are having high level of swing on the day of listing on exchanges. Still here also supply and demand mechanism is playing big role on deciding the actual value of that coin/token at the end of the day. Supply/demand is the top most layer of a coin which is just reflecting the potential of a coin/token.

[cryptomaniac_xxx]

I’m new to this so might be a silly question but why are some coins expensive from launch? Like from $1 an counting where as others launch at 0.000+. And some coins backed by so called “low rent rip off” companies (pancakeswap) have currencies that reflect  the former coin and “respectable” companies (Cripto.com) have coins that reflect the latter.

Hope that makes sense apologies if it doesn’t

The product itself, if it is highly touted and have a good use case then it will be expensive, and add to that the people behind it, with their face and reputation on the line. While others are shitcoin and using crypto's anonymity to hide their real names and other personal info. So investors are going to sway away from that kind of projects resulting to the price launch at quite cheap price.

[Princejebs]

I’m new to this so might be a silly question but why are some coins expensive from launch? Like from $1 an counting where as others launch at 0.000+. And some coins backed by so called “low rent rip off” companies (pancakeswap) have currencies that reflect  the former coin and “respectable” companies (Cripto.com) have coins that reflect the latter.

Hope that makes sense apologies if it doesn’t

All coins have their tokenomics and each team allocate what works best for them. Like bitcoin for example, the total coin that were created was 21 million and looking back the back the price, bitcoin was once price around $10 but today, its another successful story.
The same way it goes for other coins you see listed on market cap. Take a look at doge also.
Ps: Listing price is not always shown on market cap or coingecko as it takes month and weeks before they actually get listed on this platform, so there are some coins that get listed with low price but they often not shown on market cap.

[justdimin]

The product itself, if it is highly touted and have a good use case then it will be expensive, and add to that the people behind it, with their face and reputation on the line. While others are shitcoin and using crypto's anonymity to hide their real names and other personal info. So investors are going to sway away from that kind of projects resulting to the price launch at quite cheap price.

A good use case or about shitcoin kind of things will be decided over the time and definitely not from the launching day of the project into exchanges. I mean even some projects are explaining about their product/solution that they are going to focus might be deciding actual value of that coin before entering into exchange still how much demand that coin will be creating will be the final deciding factor here.

One good example here is GRIN.

It is a privacy coins and @theymos themselves accepted its potential and started accepting as another payment for copper membership of this forum still its value is diminishing everyday because of huge supply.

Huge supply may not be a problem still not creating enough demand to compensate the supply might be a problem of GRIN even it got good use-case.  

[Marvelman]

My view is that this is like launching a company's stock. Demand for any new stock is not determined by company fundamentals. It is determined by supply and demand, the number of people who are willing to buy it. Investors just want to see if the valuation is justified.

[Teraboy]

There are some things that can be considered as the factors that already made the price became so expensive.
1 total supply
2. ico price
3. development progress
4 the most important thing should be the hype.

people will not care so much about the total supply and ico price when this project got very big hype. Did you know flow? it has billion supply but each of flow token worth two digits
for me if it's too expensive these days.

[Don Pavilion]

I’m new to this so might be a silly question but why are some coins expensive from launch? Like from $1 an counting where as others launch at 0.000+.

This is influenced by a million factors. Capitalization of coins, how many were created, how many were burned, and so on. It even affects the number of holders and trading volumes.

[tyz]

But if it's a continuous development, the price increase is inevitable.

Not necessarily. A good example in Ripple. A large part of the XRP are still owned by the founders who are gradually selling them. If Ripple were fairly distributed, the current price would be much lower. Only 1/3 of Ripple coins are in free circulation. The current price is around $1.5. If all coins were in circulation, the fair price would have to be around $0.5, if not even lower.

[rahmatullah9305]

This is influenced by a million factors. Capitalization of coins, how many were created, how many were burned, and so on. It even affects the number of holders and trading volumes.

Yes, everything that happens obviously has an effect, but among the several influences you mentioned, only two effects can have a very large effect, namely the number of holders and the number of burns.

[yhiaali3]

What makes some coins cheap less than  1$ and others amounting to hundreds of dollars is the total supply, the coin project, and the demand for the coin, usually coins that have a high total supply there is a large amount offered in the market and this is very logical according to the law of the market any material that is offered Large ones, their price will fall and vice versa, i.e. the scarcity of the currency in the market makes the demand for it high and thus its price will rise.
Of course, there are some exceptional cases, such as the Dogecoin currency, where the supply of it is very large, and Total Supply is very large and unspecified, and despite this, its price was illogically raised through speculation.

[Flowzer]

Its like a stock. If ICO or IPO its all depends on how much the companies/ developer want to sell it.
After that the market decide the price, if the product is relatively good the price will rise and if no the price will dump.