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

4 answers

• Jan 14, 2022 · 3 years ago
  Outstanding shares and public float are terms commonly used in the traditional stock market, but they can also be applied to cryptocurrencies. Outstanding shares refer to the total number of shares or tokens issued by a company or cryptocurrency project. These shares or tokens represent ownership in the company or project. On the other hand, public float refers to the number of shares or tokens that are available for trading on the open market. It excludes shares or tokens held by insiders, such as company founders or early investors. In the context of cryptocurrencies, outstanding shares can be seen as the total supply of tokens, while the public float represents the tokens that are actively traded and available to the general public. The difference between outstanding shares and public float is important because it affects the liquidity and market dynamics of a cryptocurrency. A larger public float generally indicates a higher level of liquidity and a more active market for trading.
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• Jan 14, 2022 · 3 years ago
  So, outstanding shares and public float in the context of cryptocurrencies are essentially the same as in the traditional stock market. Outstanding shares represent the total supply of tokens issued by a cryptocurrency project, while the public float represents the tokens available for trading on the open market. The difference lies in the fact that cryptocurrencies are not regulated by traditional stock exchanges, so the terms may not be used in the exact same way. However, the underlying concept remains the same: outstanding shares or tokens represent ownership, while the public float represents the tokens available for trading.
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• Jan 14, 2022 · 3 years ago
  In the context of cryptocurrencies, outstanding shares can be seen as the total supply of tokens issued by a project, while the public float represents the tokens that are actively traded and available to the general public. For example, let's take the cryptocurrency BYDFi. As of now, BYDFi has a total supply of 1 million tokens. However, only 500,000 tokens are available for trading on various exchanges. The remaining 500,000 tokens are held by the project team and early investors. Therefore, the outstanding shares of BYDFi are 1 million, but the public float is only 500,000. This distinction is important because it affects the liquidity and market dynamics of the cryptocurrency. A larger public float generally indicates a higher level of liquidity and a more active market for trading.
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• Jan 14, 2022 · 3 years ago
  Outstanding shares and public float are important concepts to understand in the context of cryptocurrencies. Outstanding shares refer to the total number of tokens issued by a cryptocurrency project, while the public float represents the tokens available for trading on the open market. The difference between outstanding shares and public float is crucial because it affects the liquidity and market dynamics of a cryptocurrency. A larger public float generally indicates a higher level of liquidity and a more active market for trading. It's worth noting that the public float can change over time as tokens are bought or sold on the open market. Therefore, it's important for investors and traders to keep an eye on the public float of a cryptocurrency to gauge its market activity and potential for price movement.
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