[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 78 KB, 330x330, 57339361-C6AE-4A58-84D6-3AEA54527E26.jpg [View same] [iqdb] [saucenao] [google]
50365047 No.50365047 [Reply] [Original]

Say there's a shitcoin on pancakeswap with 20mil market cap and 10mil liquidity.
Say it's 100% dead as in 0 volume.
Say BNB did a 5x. Would that dead shitcoin ALSO 5x? Aka 100mil market cap and 50mil liquidity?
If not, how would the math look like?

>> No.50365173

>>50365047
no. pretty sure itd be like half that but also lose a good amount to impermanent loss so less than half, but it would definitely go up

>> No.50365413

>>50365047
If it's paired 100% to bnb and there is actually zero volume, yes it will match bnb.

The USD price will follow any other tokens it's been paired to, depending on the % size of the pools. And if there are multiple pools (e.g. shitcoin/btc, shitcoin/eth, shitcoin/bnb) arbitrage bots should keep the USD price of all pools the same.

In the other end, a token could be paired 100% to stablecoins only, in which case the price follows nothing (well the stablecoin can rug, of course).

>> No.50365444

>>50365047
In dollar value yes
If everything else stayed the same
>>50365413
He gets it

>> No.50366848

Hmm cool. So safer shitcoins are basically the pair itself while also being able to go parabolic. So like bnb on leverage with no liquidation. The math would probably get complicated when you include actual buys of the shitcoin itself. Or not. I just don't know how to go about it