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Because market cap is nonsense, if I create FooCoin with 1,000,000 tokens and sell one for $250, it has a market cap of $250M despite only ever having $250 in r
by spiralx 5y ago
Because market cap is nonsense, if I create FooCoin with 1,000,000 tokens and sell one for $250, it has a market cap of $250M despite only ever having $250 in real money involved.
- mshumi 5y agoTake this line of reasoning further and you reveal the problem with crypto to crypto taxation.
- graeme 5y agoWhy? When you sell you make a profit or loss, same as any other asset.
- graeme 5y agoI know market cap isn’t sensible for coins with varying values, but for stablecoins equal to $1 market cap is supposed to be the number of tokens in circulation and therefore should be close to reserves. Number of reserves is its own issue but only having 0.1% reserves is miniscule.