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What is the difference between free float and free float market cap in the context of cryptocurrency?

avatarJoan M PoolDec 29, 2021 · 3 years ago5 answers

Can you explain the distinction between free float and free float market cap in the context of cryptocurrency? How do these terms affect the valuation and trading of cryptocurrencies?

What is the difference between free float and free float market cap in the context of cryptocurrency?

5 answers

  • avatarDec 29, 2021 · 3 years ago
    Free float refers to the number of shares or tokens of a cryptocurrency that are available for trading in the open market. It excludes shares or tokens held by insiders, founders, or other restricted parties. Free float market cap, on the other hand, is the market capitalization of a cryptocurrency calculated based on its free float. It represents the total value of the circulating supply of a cryptocurrency that is available for trading. The difference between free float and free float market cap lies in the inclusion or exclusion of restricted shares or tokens, which can significantly impact the valuation and liquidity of a cryptocurrency. By focusing on the free float, investors can get a better understanding of the true market value and trading potential of a cryptocurrency.
  • avatarDec 29, 2021 · 3 years ago
    Alright, so here's the deal. Free float in the context of cryptocurrency refers to the number of coins or tokens that are freely available for trading on the market. It excludes any coins or tokens that are held by insiders, founders, or other restricted parties. Free float market cap, on the other hand, is the market capitalization of a cryptocurrency calculated based on its free float. It gives you a sense of the total value of the coins or tokens that are actually circulating and available for trading. This distinction is important because it can affect the perceived value and liquidity of a cryptocurrency. So, when you're looking at the market cap of a cryptocurrency, make sure to consider whether it's based on the free float or the total supply.
  • avatarDec 29, 2021 · 3 years ago
    In the context of cryptocurrency, free float refers to the number of coins or tokens that are available for trading on the open market. It excludes any coins or tokens that are held by insiders or other restricted parties. Free float market cap, on the other hand, is the market capitalization of a cryptocurrency calculated based on its free float. This means it only takes into account the value of the coins or tokens that are actually available for trading. The difference between free float and free float market cap is that the former represents the actual supply available for trading, while the latter represents the market value of that supply. Understanding this distinction is important for investors as it can impact the perceived value and liquidity of a cryptocurrency.
  • avatarDec 29, 2021 · 3 years ago
    Free float and free float market cap are two terms commonly used in the cryptocurrency world. Free float refers to the number of coins or tokens of a cryptocurrency that are available for trading on the open market. It excludes any coins or tokens that are held by insiders, founders, or other restricted parties. Free float market cap, on the other hand, is the market capitalization of a cryptocurrency calculated based on its free float. It represents the total value of the circulating supply of a cryptocurrency that is available for trading. The difference between free float and free float market cap lies in the inclusion or exclusion of restricted shares or tokens. By focusing on the free float market cap, investors can get a more accurate picture of the market value and liquidity of a cryptocurrency.
  • avatarDec 29, 2021 · 3 years ago
    Free float and free float market cap are terms that are often used in the cryptocurrency industry. Free float refers to the number of coins or tokens of a cryptocurrency that are available for trading on the open market. It excludes any coins or tokens that are held by insiders, founders, or other restricted parties. Free float market cap, on the other hand, is the market capitalization of a cryptocurrency calculated based on its free float. It represents the total value of the circulating supply of a cryptocurrency that is available for trading. Understanding the difference between free float and free float market cap is important for investors as it can impact the perceived value and trading potential of a cryptocurrency. It allows investors to assess the true market value and liquidity of a cryptocurrency by considering the number of coins or tokens that are actually available for trading.