The Deceptive Nature of Market Capitalization

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graph with coinsMarket capitalization, for new and old investors alike, represents a deceptively complex figure. While many suggest that market cap is the proper way to determine the overall value of a coin, the value displayed by a coin’s market cap is a number that can and is easily manipulated by savvy and often unethical development teams. When inexperienced investors mistakenly base valuations off of a coin’s price per unit, most investors will advise them to instead check its market cap, which is the price per unit multiplied by its circulating supply. While this represents a vastly more accurate approach, it is important to recognize

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