This week was very difficult for the crypto market. And more for the projects of the BSC network, since the BNB fell to more than half of his price, dragging all the BEP20 tokens.
The tokens do not compete with each other. One as an investor can invest in several similar projects at the same time (exchange, launch pads, charity, etc.)
And many times it is not useful to compare 2 projects since they always have different market capitalization, different roadmap, etc.
But in a situation like last week, we can compare the general behavior of different projects against the one we are looking at.
This chart is in BNB. In other words, we remove the BNB price variable from the equation.
In this terrible week, FEED Token increased its market capitalization in BNB by 47%.
In other words, if an investor put 1 BNB in at the beginning of the week, they now have 1.47 BNB. Of course, in dollars its value was reduced, because the BNB cut its value in half in dollars. But BNB will go up when this storm passes. So the important thing is to invest in projects that make us capitalize on the “hard currency”
PS: Another important fact to take into account when investing. The price of a token (BTC, BNB, FEEDToken, etc.) does not matter. The important thing to keep in mind is the market capitalization.
If the market cap is 1, when it reaches 2, you double your investment. If the market cap is 37,482 when it hits 74964, you double your investment.
Therefore, do not compare prices, because the price depends on the total supply. If there are 2 tokens with a market capitalization of $ 1 million, but project A has a supply of 1,000 tokens and project B has a supply of 400,000,000:
Project A Token Price: 1 Atoken = $ 1,000
Project B Token Price: 1 Btoken = $ 0.025
So if you put $ 1000 dollars into project A, you get 1 Atoken. And if you put $ 1,000 into project B, you get 40,000 Btokens.
What is the best investment? THEY ARE THE SAME! When the market capitalization of project A or B reaches $ 2 million, your investment will double in either case.
What you can and should compare is the actual market capitalization of the projects. For example, a good project with a market capitalization of $ 1 million has much more potential for growth than a good project with a market capitalization of $ 100 million.
Thanks for reading!
Visit feedtoken.org to know more.