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How does the concept of float shares outstanding apply to the cryptocurrency market?

avatarRajesh BDec 26, 2021 · 3 years ago3 answers

In the cryptocurrency market, how is the concept of float shares outstanding relevant and what does it mean?

How does the concept of float shares outstanding apply to the cryptocurrency market?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    Float shares outstanding is not directly applicable to the cryptocurrency market as it is a concept primarily used in traditional stock markets. In cryptocurrency, the concept of float shares outstanding is replaced by circulating supply, which refers to the total number of coins or tokens available for trading in the market. Circulating supply takes into account factors such as locked or reserved tokens, pre-mined coins, and tokens held by the project team. It is an important metric for investors to assess the liquidity and potential market impact of a cryptocurrency.
  • avatarDec 26, 2021 · 3 years ago
    Float shares outstanding? Nah, we don't use that term in the crypto world. Instead, we talk about circulating supply. It's the total number of coins or tokens that are actively being traded. This includes the coins in people's wallets, on exchanges, and those being used for transactions. So, when you hear about the circulating supply of a cryptocurrency, it's basically telling you how many coins are out there and available for buying and selling. It's an important factor to consider when evaluating the market potential of a crypto project.
  • avatarDec 26, 2021 · 3 years ago
    In the cryptocurrency market, the concept of float shares outstanding is not commonly used. Instead, we refer to the circulating supply of a cryptocurrency. The circulating supply represents the total number of coins or tokens that are in public hands and available for trading. It excludes locked or reserved tokens, as well as those held by the project team. The circulating supply is an important metric for investors to understand the market liquidity and potential price impact of a cryptocurrency. It can also give insights into the level of decentralization and distribution of a project's tokens.