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/biz/ - Business & Finance

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14916698 No.14916698 [Reply] [Original]

Chainlink's market cap dilemma is very interesting and I have no idea what to make of it.
>inb4 market cap is a meme
It's the only real metric by which we can put a value on any crypto and CMC is what 98% of people base the crypto ranking on. So here's the problem:
Since the genesis of LINK the circulating supply has been 350 million (aka the ICO part of the supply). But Chainlink is not like Bitcoin or ETH where there's an algorithm by which new coins get minted until it reaches the total supply. With Chainlink, there's always 1 billion tokens which one could categorize into 3 almost equivalent batches: public stake holders, team's stake, incentives payout pool for network catalysis/adoption. But the latter 2 categories aren't "locked up" or algorithmically governed which means they're as liquid and circulating as the "official circulating supply". This became obvious since mainnet, from both "locked up" batches linkies have been flowing into the hands of other parties (Chainlink pays for heartbeat with incentives pool LINK, team has sold LINK for expansion OTC).

We can't really say anymore which linkies are in circulation now so the only logical step is to do what should have been done from the beginning which is just declaring the supply to be 1 bilion or at least 650 million as the team can and is selling/moving funds arbitrarily right now.

Will this affect the ranking without a price difference? Maybe, will it dump the price by 65% on average? Maybe. The price is literally a big social construct right now, determined by how traders view the supply and therefore the valuation of LINK. Discuss.

>> No.14916704
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14916704

>> No.14916715

I'm not even reading your wall of text you stupid faggot. As soon as I saw the phrase "market cap" it was obvious you were a retard.

>> No.14916741

>>14916698
ranking shouldnt be affected, price on the other hand really depending the usage demand of the token. Right now I would say the price is based speculation, hence overpriced.

>> No.14916745
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14916745

>>14916715
I see you're part of the left group of linkies, that's okay, every buyer is a good buyer.

>> No.14916775

>>14916704
>2017 crypto was more than 10% of the dow jones
that's absolutely absurd

>> No.14916842

I thought of this too, when I was buying last year I was thinking that the 350 million supply will stay that way for a long ass time but I thought I'm early enough where once the supply gets tripled I will easily be 3x up to make up for it.

>> No.14916905

>>14916698
LINK market cap will overcome BTC and ETH ones. If you know you know

>> No.14917031

>>14916698
>The price is literally a big social construct right now
The market cap is a social construct.

Who gives a fuck about it.

Last trades price multiplied by amount of tokens, there is your market cap. I could spent 15 mins creating an ERC20 token, mint 100 trillion of them instantly, sell one to my brother for $1 and there you go, 100 trillion dollar market cap. Pay some wash trader to create fake volume, get listed on CMC and viola, I've dethroned Bitcoin. But the reason this doesn't happen and wont happen is it would reveal the ponzi that is BTC itself so whales will try to prevent it and start pretending like market cap means anything with their "low cap" whale buy signals.

>> No.14917046

>>14917031
agreed, that's why you should buy DUSK

>> No.14917066

>>14916704
>>14916775
No it's not. Stop comparing crypyo market caps to real companies market caps. Start comparing it to the derivatives market 1.2 quadrillion dollar market caps. It's just fake money on a hard drive.

It should be possible for shitcoins to have trillion dollar valuations, there is nothing stopping it and they wouldn't even be overvalued if it happens. A crypto market cap is a different a asset class to an actual functional company you fuckwits.

>> No.14917068
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14917068

>>14916704
My desire to swing my Linkies has been significantly reduced.

>> No.14917074

Linky cope is mighty dope, but its very sad to watch you mope.

So get your chairs, use all your dope - cause by this Sunday, you'll be coping from rope.

>> No.14917075

>>14917031
kek you should see brapper then

>> No.14917138

>>14917066
No, you should compare crypto market caps to the market caps of fiat currencies. http://money.visualcapitalist.com/worlds-money-markets-one-visualization-2017/

The 1.4 Quadrillion notional value of the derivatives market is very misleading. It is NOTIONAL value, not real value. The real value of the derivatives market is in the Trillions. For example, let's say you go on Bitmex deposit 1BTC, open a 100x long position on 1 BTC, and someone else deposits 1BTC and opens a 100x short position on 1BTC. The NOTIONAL value is 200BTC, but the real value is 1BTC because only 1 BTC will ever move from the loser to the winner.

>> No.14917294
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14917294

>>14916715
>market cap is a meme
Only on /biz/ are people this retarded

>> No.14917298

>>14917138
Not gonna make it

LINK $1000000 EOY!

>> No.14917323

Already priced in faggot. The team had to hold most of the supply because if it was all publicly available some large entity like Google or Swift could have bough up most of the supply and it would be stuck as a centralized network. They have to distribute it over time so the network stays decentralized

>> No.14917335

>>14917294
Market cap = circulating supply x price, so yes, it is a fucking meme

>> No.14917346

>>14917323
You're gonna make it big time