The more I personally lost money relying on my own "fundamental research" about project metrics, the clearer it became: the crypto market is flooded with numbers that have zero connection to reality!
This is the massive difference between the stock market and crypto. And this meme image perfectly visualizes what "market capitalization" really is.
Yes, we still look at potential market cap numbers when analyzing charts to gauge if the figures are realistic. But now I'm realizing it's completely useless!
Shiba Inu token once hit a market cap of over $40 billion! Not every real, operating international startup or business can boast numbers like that. Yet in reality, it's just random digits! There's no actual liquidity!
The core problem with the crypto market is that—with centralized exchanges, DEXes, and just wallets—we have no real way to see or understand how much actual money has been invested.
Imagine the crypto market as a huge casino hall where each token is a gaming table. The more popular the token, the more people crowd around the table. In that format, we'd clearly see how much real money people are putting on the table! We'd visually and mathematically know exactly how much cash is actually in the project. And if someone sells tokens, they'd literally take a portion of the cash off the table!
But in reality? You can buy a token for, say, $50. The price pumps in the moment, showing you $30,000 in profit on paper. The token's market cap hits 300 million. You try to sell—and the order book is empty! No buyers. You're the only one standing at the gaming table!
The formula "circulating supply × price" is yet another random "fundamental" metric that, unfortunately, gives us zero truly meaningful information!
#SHIB $SHIB