How is crypto market capitalization (MarketCap) calculated?

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2020-02-07 03:13

Asset market capitalizaton is typically assessed by multiplying the current per share/coin/token price by the total circulation of shares/coins/tokens. The total number in circulation for many crypto assets is of debate since many of the major sites report different market caps for the same assets.

 You may notice that the global market cap is higher on our website than on other market-cap based sites. We feel what the market provides now is a market capitalization based on a conjectured circulation, many times only defined in a non-legally-binding white-paper. For most coins/tokens, any coin that has already been minted can be sold at any time. Our marketcap calculations include all coins which exist today since for most assets, the entirety of their circulation could be made liquid at any time.

Our approach is one that if a coin/token developer has decided to mint coins before they need them and want to sit on them, thats fine but then they should be okay with counting those coins against their market capitalization. There are an array of techniques for minting coins/tokens after the initial genesis block/contract in a controlled and judicial manner for those developers who are more concerned with their perceived market capitalization.

We will also be implementing a conjecture based market capitalization as another field option users can choose which will reflect a similar figure as what may be found in competing market-cap sites later down the road, but not as a priority.


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