Quote:
Originally Posted by ilnjscb
81% are scams with 50 million+ market cap who are these suckers? Please tell me 600 X 50,000,000 wasn't invested and that these were nominal capitalizations
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Market Cap = Total Coins x Market Price
Market Cap doesn't include the coins that insiders have at a fraction (if anything) of the cost that the public pays through ICOs and also doesn't include market appreciation or depreciation.
Example: There are 1M coins, currently trading at $50, so $50M market cap. Insiders own 900K coins at $0. 100K coins are sold to suckers through an ICO at $100, raising $10M. At the ICO, market cap was $100M, even though only $10M was invested. The current market cap, post ICO, lost $50M from a drop in the price.