Why "Meme Coins" have huge supplies
Okay, real talk: have you ever seen a meme coin with a price that looks like it needs a microscope - think 0.00000001 - and wondered why it’s not just $1 like other tokens? It's a common head-scratcher, and most people miss the simple reason behind it.
Think of it like slicing up a giant pizza 🍕!
If you’re at a party and there’s one huge pizza, you can either cut it into eight big slices, or a thousand tiny little squares.
When meme coins have colossal supplies - sometimes trillions of tokens - it’s just like that huge pizza being cut into gazillions of tiny squares.
Each individual 'slice' or token then naturally has a really, really small price because there are so many, leading us to believe it’s 'cheap' to own a ton.
Therefore, the crucial thing to remember isn't just the price of a single slice, but the total value of the entire pizza!
🤯 This total value is our 'market capitalization' in crypto.
When you see a meme coin with a super low token price but massive supply, it often has a significant market cap.
The big takeaway is always to look at the market cap - token price multiplied by the total supply - to truly understand how 'big' a project is.
It's like realizing your tiny pizza square still comes from a huge, valuable whole!
#MemeCoins #Tokenomics #CryptoEducation #MarketCap - Disclaimer: Sharing knowledge and insights as part of learning and growing together. For educational purposes only, not financial advice.