Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Orange89 on April 21, 2021, 02:15:08 AM
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Why is high supply token doing so well like SafeMars and other such coin and What is the risk on such coin ?
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Title: Why low supply coin doing to well ?
Content:
Why is high supply token doing so well like SafeMars and other such coin and What is the risk on such coin ?
Aren't you confused with what high or low means?
Anyway, I have no idea about this project and I don't know if they have any real product but most of these tokens are driven by community hype because they also launched during bullrun. If it were a bear market, nobody would even pay attention to them.
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Theoretically, you can earn more on coins with a low supply if you carefully study the project when investing and understand whether it will be needed or is it a dummy.
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Because people wants to make money and as these projects have high supply their price is very low and with only a few investment the price increase a lot which takes the attention of many people and these projects are only money making projects and do nit have any plan for future.
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I think you are in the haste of posting your heading and text both are different-different correct your heading so that you will get the right reply to your question. I think you are talking about high supply coins as SafeMars is a high supply coin and it is dirt cheap to buy. Nowadays I see a trend where investors do not afraid to take a risk investing in new projects with low-value coins in the hope if they rise they will give a huge profit as compare to other high-value coins but my concern is We should always check whether the project is reliable or not because sometimes such projects prove to be a pump and dump coin. It pumps like a mad bull but when it drops you can not imagine how many traders lost as well. In the current bull, run some new high supply coins are doing good. The risk is high when it drops you will see a huge wall of sellers and that time you won't be able to sell it in even a single satoshi so always invest in top coins that are tested.
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We always assume that a low-supply coin or token will be doing well in terms of value per coin since it is perceived to be more valuable and scarce in supply...however this is not always the case as the whole thing depends a lot on how the market will gonna perceived the use-cases associated with the asset. One thing for sure in the cryptocurrency market is that not all assumptions are followed so there will always be exemptions on this assumption. And there are many factors and reasons why a certain asset is achieving a low or high valuation.
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They are inspired by Doge popularity, safemars, safemoon, and Feg token have really huge supply but doing pretty well compared to top 50 tokens in cmc in terms of roi imagine someone invested 6usd in safemoon and sold $450k in just a month of holding, where on earth can you find such really huge roi in very short period of time? only in crypto, also in feg in bought 45 days ago and already have 9x my investment.