【CryptoNews】Do You Know? 02: Token Supply Management?

Angelina H. Huang
Flowchain Knowledge Camp
2 min readJun 12, 2020

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Source: Flowchain

When talking about cryptocurrency or Defi, the market cap of the token project or the ecosystem is usually the first thing people want to know. We can say the market cap is the primary factor in deciding if it is a successful project. However, it is also the reason why the market cap is often targeted to manipulate. It brings out a new question. Is market cap still the best way to evaluate the true value of a token project/ ecosystem?

Flowchain adopts “Token supply management” to prevent such manipulation and proposes a more reasonable standard to evaluate a token’s actual value.

The “Do You Know? 02” will let you understand:

  1. What is market cap?
  2. Why and how can market cap be manipulated?
  3. What does “Token supply management” do to prevent such manipulation?

On y va!

Source: Flowchain
Source: Flowchain
Source: Flowchain
Source: Flowchain
Source: Flowchain

Now we get that the market cap shouldn’t be the sole indicator to determine if a token project is valuable. We should also look into deeper its token supply. More importantly, we should review how the project owner manages the token distribution.

In the next 【CryptoNews】Do You Know?, we will look into more details about token supply management.

Last but not least, feel free to leave a comment or any feedback in the Responses. :)

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