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What is the difference between outstanding and float in the context of cryptocurrencies?

avatarPedro ParraDec 27, 2021 · 3 years ago3 answers

In the context of cryptocurrencies, what is the difference between outstanding and float? How do these terms affect the market and the overall value of a cryptocurrency?

What is the difference between outstanding and float in the context of cryptocurrencies?

3 answers

  • avatarDec 27, 2021 · 3 years ago
    Outstanding and float are two important terms in the world of cryptocurrencies. Outstanding refers to the total number of coins or tokens that have been issued by a cryptocurrency project. It includes both the coins that are currently in circulation and those that are held by the project or its founders. On the other hand, float refers to the number of coins or tokens that are available for trading in the open market. It excludes the coins held by the project or its founders. The difference between outstanding and float can have a significant impact on the market dynamics and the overall value of a cryptocurrency. When the float is low and the outstanding is high, it means that a large portion of the coins are not available for trading, which can create scarcity and drive up the price. Conversely, when the float is high and the outstanding is low, it means that a large portion of the coins are available for trading, which can increase liquidity and potentially lower the price. It's important for investors and traders to consider the outstanding and float of a cryptocurrency when analyzing its market potential and making investment decisions.
  • avatarDec 27, 2021 · 3 years ago
    Outstanding and float are two terms that are frequently used in the context of cryptocurrencies. Outstanding refers to the total number of coins or tokens that have been issued by a cryptocurrency project. It includes both the coins that are currently in circulation and those that are held by the project or its founders. Float, on the other hand, refers to the number of coins or tokens that are available for trading in the open market. It excludes the coins held by the project or its founders. The difference between outstanding and float can have a significant impact on the market dynamics and the overall value of a cryptocurrency. When the outstanding is high and the float is low, it means that a large portion of the coins are not available for trading, which can create scarcity and drive up the price. Conversely, when the outstanding is low and the float is high, it means that a large portion of the coins are available for trading, which can increase liquidity and potentially lower the price. Understanding the outstanding and float of a cryptocurrency is important for investors and traders to make informed decisions.
  • avatarDec 27, 2021 · 3 years ago
    In the context of cryptocurrencies, outstanding and float are two terms that are often used to describe the supply of coins or tokens. Outstanding refers to the total number of coins or tokens that have been issued by a cryptocurrency project. It includes both the coins that are currently in circulation and those that are held by the project or its founders. Float, on the other hand, refers to the number of coins or tokens that are available for trading in the open market. It excludes the coins held by the project or its founders. The difference between outstanding and float can have a significant impact on the market dynamics and the overall value of a cryptocurrency. When the outstanding is high and the float is low, it means that a large portion of the coins are not available for trading, which can create scarcity and drive up the price. Conversely, when the outstanding is low and the float is high, it means that a large portion of the coins are available for trading, which can increase liquidity and potentially lower the price. It's important for investors and traders to consider the outstanding and float of a cryptocurrency when evaluating its market potential and making investment decisions.