What is the difference between share outstanding and float in the cryptocurrency market?

1 answers

• Feb 18, 2022 · 3 years ago
  Share outstanding and float are terms commonly used in the stock market to describe the ownership and availability of shares. In the cryptocurrency market, these terms can be applied in a similar way. Share outstanding refers to the total number of coins or tokens that have been issued by a cryptocurrency project. It includes both the coins or tokens that are held by investors and those that are not yet in circulation. Float, on the other hand, refers to the number of coins or tokens that are actively traded on exchanges. It represents the supply of the cryptocurrency that is available for buying and selling. The float can impact the liquidity and price stability of a cryptocurrency. A larger float generally indicates a higher level of market activity and liquidity, while a smaller float can lead to higher price volatility. It's important for cryptocurrency traders and investors to consider the share outstanding and float when evaluating the potential risks and rewards of investing in a particular cryptocurrency.
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