Owners of Prizm Coins should be asking questions

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psylocyber
Posts: 19
Joined: Sat Mar 24, 2018 6:26 pm

Owners of Prizm Coins should be asking questions

Post by psylocyber » Mon Nov 18, 2019 7:39 am

Owners of Prizm Coins should be asking questions...or maybe not. Maybe they'll benefit somehow from the Coins marketcap literally quadrupling overnight. Actually it was more than that but I can't spell (quent.pl..ing?)

And someone please fact check me if I'm wrong. I'm certainly no expert, but I can smell pigs and bullshit from a mile away. Prizm is a fairly new coin (2017) that recently made it into the top 200 on coinmarketcap.com. If you look at Prizms chart on that page there's a huge red flag (actually it's a bright blue line) that says something ain't quite right. Between Oct 6 and 7 the marketcap of Prizm went from $19M to $106M while the price of it actually decreased slightly. The definition of marketcap is circulating supply x price. If the price didn't go up how did they manage to increase the supply of coins by like 500% ? Literally overnight. And Nobody noticed?

Usually in classical economics (I can't remember whether it's Locke or Keynes) you would expect a lot of pressure to decrease the price of the coin when the supply has just more than quadrupled with no concurrent increase in demand. But the price actually went up after that. The last time I looked their market cap was over a quarter $Billion. When only a month and a half ago it was a mere $19M. Here's the historical numbers:

https://coinmarketcap.com/currencies/pr ... d=20191101

Again, someone please tell me if I'm wrong. I don't know what's wrong exactly, but I know something stinks. I don't know how you account for creating 500% more coins overnight. I got a support ticket from coinmarketcap.com, they said "Thanks for bringing this to our attention...we're going to have our developer's look at it" and I haven't heard from them since, even tho I've sent them a couple of reminders.

Anyway, if you own Prizm, I would look a little more closely. And I would have thought somebody else would have caught this, besides me. I thought people were analyzing shit like this daily. I guess not. One look at the chart and you can tell somethings wrong. How many of these other coins have done similar stuff but were just smarter how they did it. Maybe doing it slowly over time instead of doing it overnight so that even an idiot like me can catch them. Please tell me if I am wrong and I will apologize to prizm and maybe even buy some and join their club. But I don't think so.
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psylocyber
Posts: 19
Joined: Sat Mar 24, 2018 6:26 pm

Re: Owners of ANY Coins should be asking questions

Post by psylocyber » Sat Nov 30, 2019 3:56 am

Thanks for all the replies (Sarcasm). I was hoping someone that knew more than me would enlighten me to what's going on. Not because I'm that interested in Prizm but just to understand the process (or scam) when I see it again.

Coinmarketcap's support recently got back to me and didn't seem too worried about it. They said the developers released a large quantity of coins from their reserve wallets and that accounts for the change in circulating supply, which accounts for change in market cap. But that meant that the developers were holding 80% of the total supply of the coins in reserve and then just dumped them in one day. Which normally would be a very uncool move, as any other coin probably would have taken a huge nosedive in price. Prizm didn't and I don't understand how that could be. I mean this was approx 200,000,000 coins added when there had been only approx 50,000,000 coins previously.

According to coinmarketcap.com, one of the differences between circulating supply and total supply is that circulating supply does NOT include:
"Assets that are locked (via smart contracts or legal contracts), allocated to the team or private investors, or not able to be sold on the public market, cannot affect the price and thus should not be allowed to affect the market capitalization as well."

I disagree with this as there is nothing preventing private investors OR development teams from selling their coins which WILL affect the price, so they should be counted. Likewise the coins tied up in smart contracts will be spendable and salable as soon as the contract is complete and will also be able to affect prices.

I know from now on I will be keeping an eye on the Total supply as well. I don't want to be surprised by a sell off of coins that I didn't know existed, and I would be leery of any coin or development team that held 'too many" back. How many is "too many"?? How the hell should I know? I'm the one asking you guys for answers.
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