Here's a little unknown word that will answer 95% of questions you have about crypto that makes you think "WhAt tHe AcTuAl FcK mAn"
Liquidity.
- How does a shitcoin hit $100M market cap overnight?
- How did Cardano's ADA market cap go from $11bn to $46bn in a month?
- How did Ripple's XRP market cap go from $29bn to $165bn in a month?
- Why did my venture investment go down by 90% in a week post launch?
Liquidity.
For example, let's look at XRP.
A month ago, just before it flew up, it had a liquidity on its biggest DEX, PancakeSwap, of only $391k.
It had a market cap of 29 billion, and liquidity of 0.000391 billion.
What this means is that if you wanted to 5x XRP's price and market cap, you only had to place a buy of maybe like $5M? $10M? on PancakeSwap.
Now, there is obviously all the liquidity on all the CEXs XRP is on, but CEXs operate with market maker order books instead of an automated market maker, so things are even worse there - the market makers can literally just not match the buy orders with higher prices, thereby pushing price up.
I AM NOT SAYING THIS IS WHAT HAPPENED. THIS IS ILLEGAL.
But imagine when it comes to sending a coin from $29M market cap to $165M market cap. How much buy pressure you need?
The point is you don't need a lot of money to send a coin through the roof. You just need some money, and some shenanigans.
Also, crucially, nobody is selling XRP. Once those $Mms got deployed, those people didn't dump bringing the price back down like what happens in 99.99% of shitcoins.
Liquidity.
- How does a shitcoin hit $100M market cap overnight?
- How did Cardano's ADA market cap go from $11bn to $46bn in a month?
- How did Ripple's XRP market cap go from $29bn to $165bn in a month?
- Why did my venture investment go down by 90% in a week post launch?
Liquidity.
For example, let's look at XRP.
A month ago, just before it flew up, it had a liquidity on its biggest DEX, PancakeSwap, of only $391k.
It had a market cap of 29 billion, and liquidity of 0.000391 billion.
What this means is that if you wanted to 5x XRP's price and market cap, you only had to place a buy of maybe like $5M? $10M? on PancakeSwap.
Now, there is obviously all the liquidity on all the CEXs XRP is on, but CEXs operate with market maker order books instead of an automated market maker, so things are even worse there - the market makers can literally just not match the buy orders with higher prices, thereby pushing price up.
I AM NOT SAYING THIS IS WHAT HAPPENED. THIS IS ILLEGAL.
But imagine when it comes to sending a coin from $29M market cap to $165M market cap. How much buy pressure you need?
The point is you don't need a lot of money to send a coin through the roof. You just need some money, and some shenanigans.
Also, crucially, nobody is selling XRP. Once those $Mms got deployed, those people didn't dump bringing the price back down like what happens in 99.99% of shitcoins.
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Happy New Year🎄 Here’s to a prosperous and thriving 2025 — may it be a bullish one for us all.
As we step into the new year, here’s a sneak peek at what's to come from Simplicity:
1. Invite Only Tokenomics Chat for Projects and VCs: We’re launching a dedicated chat for tokenomics discussions. We’ll share our in-depth internal research and create a space for projects/VCs to ask us questions and engage in meaningful conversations about tokenomics.
2. Podcast Launch: Insightful interviews and debates on our upcoming podcast.
3. Syndicate Back Up: Our syndicate will be back in full swing and we're thrilled to bring you the more exclusive deals.
4. Research Reports: Detailed deep dives into ecosystems like TON & Monad, statistical analysis into the topics like the impact of FDMC on price performance, and much more.
5. Conference Attendance: We will be attending Consensus Hong Kong, Token2049 in Dubai and Singapore, Paris Blockchain Week, Bitcoin 2025, and ETHCC.
Thank you for being a part of our community. We’re excited about what lies ahead.
As we step into the new year, here’s a sneak peek at what's to come from Simplicity:
1. Invite Only Tokenomics Chat for Projects and VCs: We’re launching a dedicated chat for tokenomics discussions. We’ll share our in-depth internal research and create a space for projects/VCs to ask us questions and engage in meaningful conversations about tokenomics.
2. Podcast Launch: Insightful interviews and debates on our upcoming podcast.
3. Syndicate Back Up: Our syndicate will be back in full swing and we're thrilled to bring you the more exclusive deals.
4. Research Reports: Detailed deep dives into ecosystems like TON & Monad, statistical analysis into the topics like the impact of FDMC on price performance, and much more.
5. Conference Attendance: We will be attending Consensus Hong Kong, Token2049 in Dubai and Singapore, Paris Blockchain Week, Bitcoin 2025, and ETHCC.
Thank you for being a part of our community. We’re excited about what lies ahead.
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🌟 Partnership Announcement 🌟
We're pleased to announce our partnership with Fidesium, one of the best and most reasonably priced smart contract security and audit firm.
This partnership allows us to introduce our clients to a high quality yet very affordable auditing firm, bringing everyone one step closer to safe launches. We fully vouch for these guys, and will recommend to message @Bockus to get your code checked for a fraction of the cost.
We're pleased to announce our partnership with Fidesium, one of the best and most reasonably priced smart contract security and audit firm.
This partnership allows us to introduce our clients to a high quality yet very affordable auditing firm, bringing everyone one step closer to safe launches. We fully vouch for these guys, and will recommend to message @Bockus to get your code checked for a fraction of the cost.
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Airdrops are more than just free tokens—they're strategic tools for blockchain projects to increase awareness and user engagement.
We analysed 22 popular airdrops to explore how projects performed after providing insights on how to best structure airdrops.
Check out the full article here:
www.simplicitygroup.xyz/blog/airdrop-performance
We analysed 22 popular airdrops to explore how projects performed after providing insights on how to best structure airdrops.
Check out the full article here:
www.simplicitygroup.xyz/blog/airdrop-performance
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