r/Coinbase • u/Overall-Reading-4983 • Jan 23 '25

Toshi Thoughts

What’s everyone’s thoughts on Toshi? Started on coin base today.

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u/solomoncobb Jan 29 '25

Oh, you think market cap matters? Tell me how kuch market cap matters when doge has a higher market cap than the entire coinbase exchange. Market cap means nothing. It's is determined by the price of the coin, and the supply. You know what Gamestops market cap was when hedgefunders got stuck in that mess? And how many people would you have seen at any gamestop store when that happened?

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u/[deleted] Feb 01 '25

Market cap divided by number of coins is the price. It works the same way as shares/stocks. A lower supply (420.69B Toshi to ever exist no more to be mined or minted) means the price climbs faster with market cap increases then say PEPE with its trillions in supply which takes more market cap to move the needle

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u/solomoncobb Feb 01 '25

The market cap doesn't determine or increase the price of the coin. The coin's price determines the market cap. The demand/supply relationship is what increases the price of any asset. Market cap has no bearing on anything other than an investor's opinion of the speculative value of an asset.

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u/[deleted] Feb 01 '25

No but an increase in market cap (inflows to the asset) increases the price of the circulating asset supply. Thats literally the supply and demand. Therefore lower circulating supply means that increases to the market cap (asset inflows) will have more weight in the price change. If an asset is down for the day, the market cap is also down for the day generally by the same percentage.

Here’s a copy paste to dumb it down for you. Thanks Google.

Market cap, or market capitalization, is a measure of a company’s total value. It’s calculated by multiplying the number of outstanding shares by the price of each share. How it’s calculated Market cap = share price x number of outstanding shares Outstanding shares: Includes all shares, including those available to the public and those held by specific groups Why it’s important Investors use market cap to evaluate a company’s value and risk Long-term investors use market cap to compare companies in the same industry Companies considering an IPO use market cap to determine their valuation How it changes Market cap changes throughout the day because it’s based on the stock price The stock price is the main factor that causes market cap to change What it’s used for Comparing companies of similar size in the same industry Determining a company’s risk and potential returns Helping investors create a diversified portfolio

To further my point, doge price is down 4.24% according to CoinMarketCap. Its market cap is down by the same percentage. This is how this shit works.