Secret Price Formula for Just Launched Coins

When a coin is just launched there is no market, no exchange, and no price. If you want to buy some coins before they are sold on any exchange, how do you estimate the price? Here is a formula from Alvin Lee:

(Total BTC Supply ÷ Total Altcoin Supply) ÷ 5000to10000

It worked out well for Pandacoin: (21M÷100000M)÷5000to10000 = 42to21 Satoshi. A few hours after the start chaos you could buy it at 48 Satoshi. So the price of the magic formula was a good price before it was available on

Same formula but slightly different written:

21million / “Total Altcoin Supply” / 5000 = optimistic upper valuation

This gives you a starting point for trading altcoins pre-exchange. Also, coin developers take note: This is also the price you should try to get for your coins initially.


    • Anonymous

      The formula will not work for some, for instant Coin2. C2 is fully mined and distributed to 1st 1000 lucky people. That 1000 will redistribute theirs share through giveaway, trades, and other means. Therefore, formulation will be much complicated since there will be coins locked in their private storage inactive or may be forgotten permanently and some lost in the experiment transfers by beginners. Total inactive assume 20%. I speculate, thru exam blockchain and wallet downloads, there are few individual owes 2 or more wallets with at least 1 mil C2 in total thru private arrangement before traded in exchanges. These individual most likely will not release it unless coin value reach to a certain price objective, few dimes per coin is out of the question.
      So The estimated floated Coin2 would be in the less than half of the existing coin 50mil. If apply all the scenario..a long equation, C2 worth? 0.00x

    • CryptoFrenzy

      It is a valid question how premining affects the price. With AuroraCoin the situation is similar. Most of the coins are determined for the “airdrop”. Does it raise the price since coins are actually more scarce? Does it lower the price since the dump/scam danger is higher?

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