Market Cap in Circulation of $94M for a potentially successful Layer1 is low since many successful layer1 have grown to ~$30B range before starting to lose steam. However, 3200% growth in less than 1 year is scary since people who bought $1000 worth of it early on now have $32K worth of selling pressure built up, lot more if the project reach $1B+ marketcap. The volume of transactions is also increasing, that’s also a good indicator of success. The price only lost 40% during the crypto crash of 2022/2023, so that’s also a good sign.
Circulating supply is at 16B, while the total supply is at 28B, so that’s another 12B that still has to be released on the market which could significantly dilute the value. Release schedule is fixed, and not based on adoption which is not ideal. https://kaspa.org/tokenomics/. Since VC’s have not received token allocation (unless this is a lie), then massive selling pressure is unlikely, except for early adopters. But since $97M is still low for a layer1, I believe the release schedule for the additional 12B token is not really an issue even if it’s a fixed schedule.
Since there is no mention of team allocation of tokens, who is financing maintenance and why? Could use some clarifications. Without proper cash reserve, how will the token be listed on CEX’s or financing liquidity pools on DEX be funded?
** Update on Feb 8, 2024. I believe Kaspa is SEC compliant just like Bitcoin ($BTC), which means I believe that after the BTC ETF, it is likely a handful of SEC compliant crypto assets will become attractive for eventual institutional appetite which is one of my favorite narrative for the 2024/2025 bull run. We are a long way ahead before Kaspa has it's own ETF, but until then I expect the fully diluted market cap of Kaspa to peak above $100B (while some may think this is vastly over valued, I don't necessarily disagree, however previous bull markets have demonstrated that the best new crypto assets can grow to $150B in their first crypto cycle such as Solana. Read my full explanation on my medium blog. If true, this is another 30X from the current price.
I'm a lot more bullish now than I was a year ago in regards to Kaspa, most of my earlier fears have vanished, and clearly this is one of the strongest crypto assets of this cycle. Show Less