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Actually this is very interesting question about which I'm thinking for some time lately. Why does overwhelming majority of crypto tokens cost approximately in
by Yizahi 5y ago
Actually this is very interesting question about which I'm thinking for some time lately. Why does overwhelming majority of crypto tokens cost approximately in the range between single dollars and thousands of dollars per token, regardless of total number tokens printed or reserved?
My first thought would be - because those are "humane" prices, i.e. prices most humans interact daily and have reference points for. Parkinson also wrote about similar effect - when the most discussed price by a group would be the one closest to the daily amount of money, e.g. committee would discuss budget for a nuclear reactor for a few minutes, then argue for an hour about price of coffee supplier for the office coffee maker.
But while this hypothesis looks interesting I can't imagine how it may happen in real life, how do the prices converge to the 1-1000$ range and why?
PS: good example was recent HDD token Chia. Before the token become listed on exchanges people hypothesized that it's price would be hundreds or thousands of dollars, and they were right eventually. But why really? Why not 0.0001$ per token or 1 million per token? How did this price fixation happened?