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Why did it become half a billion dollar worth in one day? What is special about YAM?
by _ink_ 6y ago
Why did it become half a billion dollar worth in one day? What is special about YAM?
- dtech 6y agoThat figure was the market cap, the price at which a token was sold multiplied by the number of tokens on the market. If a billion tokens are available, the market cap is $0.5B if you sell a single token for $0.5. That's what happened yesterday more or less. You won't be able sell all tokens for $0.5B, so saying they are worth $0.5B is misleading for such a volatile and young project. The metric works much better (but not perfect) for established shares, financial products or contracts for physical objects.
- eru 6y agoYes. To give an example: many bitcoins are lost (ie deleted private key), or in accounts that presumably will never trade, so you should remove those when calculating bitcoin total market capitalisation.
- 9nGQluzmnq3M 6y agoExcept that it's literally impossible to distinguish between a "lost" bitcoin (no private key) and one sitting in a cold wallet (private key exists offline).
- Scoundreller 6y agoLots of things are impossible to calculate 100% precisely, but that doesn’t stop anyone from building models anyway. Just like “How much US$ is out there in paper currency?”. Impossible to know, especially as it’s never been demonetized, but models exist and are used.
- geek_at 6y agoI hear their self destruct feature works pretty well
- flarex 6y agoThey took the best features from a number of different projects and gave an equal opportunity for all participants staking to earn tokens. Most other tokens/projects have been VC funded with an uneven number shares allocated to early funders (aka pre-mining).
- bgitarts 6y agoIt was named after a vegetable and vegetables meme well in Ethereum because a subset of Etherians like to "yield farm" and identify as yield farmers.