Here’s the condensed version in a punchy Twitter / X thread format, structured and ready to post:
1/7 🧠 Crypto 101: Why the unit price of a token (almost) means nothing? 🧵
If you think a crypto at $0.00001 is "cheap" or has more potential than a token at $100, you’re falling into one of the most common traps in the market.
Explanations 👇
2/7 📐 The golden rule: Market Cap (Market Capitalization).
It’s the one that gives the TRUE overall value of a project, not the price of a single token.
💡 Formula:
Market Cap = Token price × Circulating supply
3/7 📊 Concrete example:
• Project A : Price = 10 $ | Supply = 1 million ➡️ Market Cap = 10M $
• Project B : Price = 0.001 $ | Supply = 10 billion ➡️ Market Cap = 10M $
👉 These 2 projects have exactly the same value on the market. Project B isn’t "more accessible".
4/7 🚨 The illusion of "If it hits $1" (Unit Bias)
"If this token at $0.0001 goes to $1, I’ll be rich!"
⚠️ Do the math: if there are 1 trillion tokens in circulation, a price of $1 requires a Market Cap of $1 trillion (more than giants like Amazon or Google). Mathematically, that’s extremely unlikely.
5/7 🎯 How to categorize cryptocurrencies?
🔹 Large-Cap (> $10B): More stability, less volatility (e.g., BTC, ETH, BNB).
🔹 Mid-Cap ($1 to $10B): Growth & a risk/return trade-off.
🔹 Low-Cap (< $1B): High volatility, high potential, but maximum risk.
6/7 ⚠️ The ultimate trap: Market Cap vs FDV
• Market Cap : Based on the tokens in circulation today.
• FDV (Fully Diluted Valuation): Based on the total future supply.
If the FDV is vastly higher than the Market Cap, watch out for future token "unlocks" that will drive the price down!
7/7 💡 In summary:
Before investing, don’t just look at the unit price.
Analyze the Market Cap, the circulating Supply, and the FDV.
If this thread helped you, drop a ❤️ and RT to raise awareness in the community! 🔁🔗 https://app.binance.com/uni-qr/cart/369525848232976?r=BIC8O034&l=en&uco=8yvv_jKN4tLjjUbO8k47sg&uc=app_square_share_link&us=more