Recently, many of you might have noticed something strange when checking the stats of $1MBABYDOGE a popular meme coin that has gained attention in the #crypto space. The market cap is showing zero, yet the fully diluted market cap is listed at $466.13 million. The circulating supply is at zero, but the total supply stands at 203.64 billion coins. So, what does this all mean, and why is it happening?
What Is Market Cap and Why Does It Show Zero?
To begin with, the market cap of a coin represents the total value of all its circulating supply. The formula is simple:
Market Cap = Price of the Coin × Circulating Supply.
In the case of #1Mbabydogeprice , the market cap is showing zero because the circulating supply of the coin is currently listed as 0. This means that no coins are officially in circulation, which results in the market cap being calculated as zero even if there is a total supply available.
Circulating Supply vs. Total Supply: What’s the Difference?
Circulating Supply refers to the number of coins that are currently available to the public, either being traded or held in wallets. It’s the amount of the asset that’s liquid and part of the active market.
Total Supply is the total number of coins that exist, including those that are locked, reserved, or otherwise not available for public trading.
In the case of 1MBabyDoge, the circulating supply is currently zero, which explains the market cap being zero. However, the total supply is listed at 203.64 billion coins, meaning that these coins do exist but haven’t yet been released into the circulating market.
What’s Causing This Discrepancy?
There are a few possible reasons why the circulating supply is at zero and the market cap reflects this:
Lockup Period or Vesting Schedule: It’s possible that 1MBabyDoge is undergoing a lockup period, where the coins are held in reserve for a period of time before they are made available for public trading. This can happen with new projects, where developers lock a portion (or all) of the circulating supply to stabilize the coin and avoid major price fluctuations early on.
Token Burn or Redistribution: Another possibility is that there was a token burn, where a portion of the supply was deliberately destroyed to reduce the total amount in circulation, increasing scarcity. However, if a burn happened, we would likely still see a portion of the supply in circulation. Another scenario is a redistribution of tokens among holders, which hasn't yet reflected in the circulating supply.
Liquidity Issues: Sometimes, a coin’s liquidity (the ease with which it can be traded) is low or unavailable, which could lead to zero circulation. When liquidity is insufficient, the circulating supply could temporarily appear as zero on platforms like CoinMarketCap.
Fully Diluted Market Cap: Why Does It Matter?
The fully diluted market cap is calculated based on the total supply of coins and not the circulating supply.
Fully Diluted Market Cap = Price of the Coin × Total Supply.
In 1MBabyDoge’s case, the fully diluted market cap is listed at $466.13 million, which means that if all 203.64 billion coins were in circulation, the total value of the coin would be $466.13 million. This figure gives investors an idea of the coin’s potential value, assuming all tokens enter the market.
What Does This Mean for Holders?
For those holding or planning to invest in 1MBabyDoge, it’s essential to understand that the market cap isn’t always reflective of a project’s health or potential. The zero market cap seen right now is a technicality based on the circulating supply, which can be influenced by several factors, including the launch strategy of the project.
While the fully diluted market cap indicates strong potential value, the actual release and circulation of the tokens will play a huge role in determining how the coin performs in the long run. This period of low or zero circulation could present an opportunity to accumulate tokens before they enter broader circulation and the market reflects the coin’s true value.
The Bottom Line
#1MBABYDOGEUSDT ’s zero market cap is likely a temporary technical reflection due to its circulating supply being set at zero. However, its fully diluted market cap of $466.13 million indicates strong potential for growth once the circulating supply issue is resolved.
For holders and potential investors, it’s crucial to monitor these factors closely. Keep an eye on when the circulating supply increases, as this will likely lead to significant price movements and potential market cap growth.
This discrepancy is not unusual in the early phases of new coins or meme coins. Understanding these figures helps you make informed decisions and avoid confusion when such issues arise.
