SafeCoin supply -> Market Cap shrinkage

I’d really like a clear insight on how many coins will be ‘born’ on launch day and their allocation too. Thanks :slight_smile:

edit: OK, just read the whitepaper. Yep, a tripling of coins (and market cap) on day 1 will be an interesting development for the market price.

As it stands someone with only a million or so coins could massively affect the market price (at least temporarily) due to the small trading volumes, so an extra 800 million coins instantly available would only require a couple of people attempting to cash out for the price to be affected in a pretty drastic way.

Of course the instant jump in market cap (which would take safecoin to no.4 overall cryptocurrency) might spark interest which would counter some of the downward pressure. Also being on major exchanges will be a boon I expect.

Either way, if the tech works, and adoption is high then the short term price will not be important… time as they say will tell, and kinda exiting times I think :slight_smile:

Most of that extra 20% SafeCoin won’t be in cicrulation. 10% will be a reserved pool for future dev rewards, so that is pretty much locked. 5% will be given to the current core development team, and the other 5% will be to initial investors. That last 10% will be available for spending, but most of the owners I imagine won’t immediately start selling, since they’re likely all “true believers”.

That being said, there will probably still be a significant amount of extra SafeCoins in circulation right after launch, which will put downward pressure on the price. That’s just the reality of it, I don’t think the allocation is unfair (on the contrary, I think it’s fairly balanced). Hopefully it will compensate the hype price somewhat, reducing volatility in the early days.

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Cashing out suddenly will push down the price, which automatically incentivises people to hold on. Who cares if on launch the price dips? Only those who want to cash out a lot and early… which is not a good investment strategy.

It will be volatile we can be pretty sure of that! But being related to farming/proof of resource will have a dampening effect compared to other crypto currencies I expect.

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