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Capitalization & Unlocked Coins — Full Breakdown & Transcrip

0h 11m video Published Aug 19, 2024 Transcribed Aug 4, 2026 AS Crypto AS Crypto
Beginner 4 min read For: Crypto beginners interested in fundamental analysis and learning how to evaluate coins before investing.
AI Trust Score 70/100
⚠️ Average / Some Fluff

"Delivers a solid fundamental analysis lesson, though the title's hype is slightly oversold for a straightforward tutorial."

AI Summary

This video is part of a crypto foundation course, focusing on fundamental analysis of cryptocurrencies. The instructor explains how to evaluate a coin's capitalization, correction, and the percentage of unlocked coins in the market, using a table and live data from CoinMarketCap and CryptoRank. The goal is to identify coins with high market circulation and low risk of sudden price drops due to token unlocks.

[00:02]
Introduction to Capitalization and Unlocked Coins

The lesson covers capitalization and the percentage of unlocked coins (emission) in the market, which are part of fundamental analysis. Correction is also mentioned as related, but already covered earlier.

[00:47]
Adding Columns for Cap and Emission

The instructor adds columns for capitalization (Cap) and percentage of coins in the market (emission) to the analysis table. Data can be found on CoinMarketCap and CryptoRank.

[01:15]
Example with BNB

Using BNB as an example, the instructor shows how to copy capitalization and circulating supply from CryptoRank. BNB has 81.64% of coins in the market, which is considered a good indicator (above 80% is suitable for investment).

[02:21]
Data Discrepancy Between Sources

CoinMarketCap shows slightly different data (e.g., 80% circulating supply). The instructor advises using one source consistently to avoid errors, but notes that a small discrepancy (1-2%) is acceptable.

[03:11]
Filling in Data for Other Coins

The instructor fills in data for other coins: Cardano (77.88%), Fort (16.21%), and Steak (2.5 million cap, very low circulation).

[04:33]
Formatting Numbers in the Table

The instructor demonstrates how to format numbers in the spreadsheet to make them readable, including removing commas and adding thousands separators.

[05:57]
Interpreting Capitalization and Emission

The instructor explains that a low percentage of tokens in the market (e.g., 16-20%) is risky because if more tokens are unlocked and sold, the price could drop significantly. High circulation (above 80%) is preferred.

[07:43]
Comparing Coins: Cardano vs. Steak

Cardano has a high circulation (77.88%) and is considered safe from sudden unlocks. Steak has a very low circulation and high correction, making it risky.

[08:27]
Calculating Maximum Price from Correction

The instructor shows how to calculate the potential maximum price if the correction is 60%: current price divided by (100 - correction) / 100. For BNB at $274, this gives $685.

[09:21]
Correction and Capitalization Relationship

The correction on token price is the same as the correction on total capitalization, because capitalization = number of tokens * price. A high correction means the price is far from its peak.

[10:06]
Example: Steak's Maximum Capitalization

Steak's maximum capitalization is around $80 million, but with full emission it could be $400 million. This indicates a high risk of price drop if all tokens are unlocked.

[11:01]
Homework Assignment

The instructor assigns homework: duplicate the table link, add the capitalization column and the emission column (percentage in the market). Questions can be asked in the comments.

The video emphasizes the importance of considering the percentage of unlocked coins and capitalization in fundamental analysis. High circulation reduces the risk of price crashes from token unlocks, while low circulation requires caution. The instructor provides a practical method for evaluating these factors and assigns homework to reinforce the concepts.

Mentioned in this Video

Tutorial Checklist

1 00:47 Add columns for Capitalization (Cap) and Percentage of coins in the market (Emission) to your analysis table.
2 01:15 For each coin, go to CryptoRank or CoinMarketCap and copy the market capitalization and circulating supply.
3 03:11 Fill in the data for all coins you are analyzing, ensuring consistency in data source.
4 04:33 Format the numbers in the spreadsheet to make them readable (remove commas, add thousands separators).
5 08:27 Calculate the potential maximum price using the formula: current price / ((100 - correction) / 100).
6 11:01 Complete the homework: duplicate the table, add the capitalization and emission columns, and share your results.

Study Flashcards (5)

What is the recommended minimum percentage of coins in the market for a coin to be suitable for investment?

easy Click to reveal answer

Above 80% is considered a good indicator.

02:09

Why is a low percentage of tokens in the market risky?

medium Click to reveal answer

If more tokens are unlocked and sold, the price could drop significantly.

06:59

What is the formula to calculate the potential maximum price from the current price and correction?

medium Click to reveal answer

Current price / ((100 - correction) / 100).

08:40

What is the relationship between token correction and capitalization correction?

hard Click to reveal answer

They are the same, because capitalization = number of tokens * price.

09:21

Which coin had a circulation of 77.88% in the example?

easy Click to reveal answer

Cardano.

03:11

💡 Key Takeaways

⚖️

80% Circulation Threshold

Provides a clear, actionable benchmark for evaluating coins.

02:09
💡

Risk of Low Circulation

Explains a key risk in crypto investing that is often overlooked.

06:59
🔧

Maximum Price Calculation

Offers a practical formula to estimate potential upside.

08:40
📊

Correlation of Corrections

Clarifies a fundamental relationship in market analysis.

09:21

[00:02] and this is excellent. Moving on, now we will look at the following factors: capitalization and the percentage of unlocked coins, that is, the percentage of the mission that is already in the market. Also in this lesson, the title has general terms

[00:17] plus correction because correction also relates to fundamental analysis since here we do not look at the chart, we do not need it here. But we already looked at the correction literally at the very beginning when we

[00:33] looked at which coins are suitable for us for analysis now, more precisely, for the nearest investment, which is not yet suitable, therefore, a bracket is attached because we have already done it, which means that we need it here, we are now adding a column

[00:47] capitalization, in abbreviated form we call it simply Cap. I think you have heard of this and the percentage of coins in the market can be called missions. I will call it that in the market

[01:00] in Frank, traditionally, you can look at this in both coinmarketcapi and in the Crypto frame. So, again, let me highlight them in color. Let it be something like this and Let it be something like this and Let's go in order, so the bnb ticker,

[01:15] Let's go in order, so the bnb ticker, I will look at the Crypto frame, coinmarketcap I'll also reveal that I cut where to look for this information so that it was easier for you to understand, so here I also choose bnb, by the way, here you can go like this, it's

[01:32] by the way, here you can go like this, it's at the top, it's first, it's easy to see, so at the top, it's first, it's easy to see, so capitalization, we just copy

[01:44] and paste the capitalization and look at how many tokens are in the market, this section is called circulation 81 and 64

[01:56] living room 64 is this a lot or a little, we will see later now I will say that this is a good indicator, everything above 80 suits us perfectly

[02:09] for further investment. And I also opened marketcaption to show where to are located here on the market capitalization and circulating application.

[02:21] Let's look at 48 882, you see, that is, the data is already slightly different and in the market 8164 Here it tells us

[02:35] 80 percent, that is why I say that in an ideal world, when to do this, do this analysis in one thing because there is not always data here and there that is ideal, therefore, regarding a specific column, it is desirable that the data be

[02:50] taken either from there or from there, but in fact, 81 and 64 percent and eight percent is the permissible error for our analysis of hell,

[03:11] fill in these 5 and we'll just look and compare, I'll comment on this whole thing out loud to you, like this: compare, I'll comment on this whole thing out loud to you, like this: circulation 77 88 77 88 next We have Ford, we

[03:31] by the way, bam already Yes, the difference is striking, yes, much less now, we'll make the data more beautiful, we're not in a hurry in the market 1621 here you can already

[03:45] see in the market there's really little, that is, a very significant difference, steak steak

[04:00] the capitalization here, it's completely penny-pinching, two and a half million, here you can add a comma, percentage That's it,

[04:33] I love large circulations, this is really great really great 9351 Yes, I'll leave the comma so it looks like a number, otherwise he simply won't recognize it now Let's

[04:45] bring a person to a similar view a little, take extra periods, commas here, I'll it more human-like, we'll select it, go human-like, we'll select it, go to the number format and here we'll select the date about and you

[05:01] see it's already stretched out for us with the dots already firmly this is the thing to look at and the capitalization here is not a number now commas We have it entered for us Yes, so that there are no commas here for this we select it, press control until we find

[05:16] select it, press control until we find the comma and replace it with nothing, press the comma and replace it with nothing, press done and something didn't work for us we need to press replace they are all replaced ready everything now it's already a number and also now

[05:30] everything now it's already a number and also now we'll make the number format prettier we select the number Now the thing is here Double click so it stretches out now we'll remove the extra zeros like this do it in the wrong direction there

[05:44] was nothing after the comma and you see everything that is, but we have it beautifully sorted on the right edge between thousands and millions with spaces billions that is, we can clearly visually see who has what capitalization

[05:57] that is, apparently bnb has a lot of cardan too Fort 27 million is significantly less and the stake is generally very, very weak but for us It's not so much its capitalization that interests me as how many tokens are in the market, and of course,

[06:13] the correction is important, what does this tell us? Imagine a trader or investors who have been trading since the days of stock and other markets. When there was no cryptocurrency, the market is one hundred

[06:29] percent stocks, that is, there is no such decomposition. Because when there is no additional mission, and when he comes in and looks at the chart, he analyzes: now it will go up, now it will most likely go down, and so

[06:44] most likely go down, and so on. But in crypto, this is wrong because there are nuances. When there are few tokens in the market, let's say, like here, there are 16 or 20, and then bam, they pour in. Imagine that another 10

[06:59] percent or 20, for example, 20 in the market and another 20 pour in, that is, 20 percent another 20 pour in, that is, 20 percent becomes 40. What happens if these 20 percent that were added are not decomposed, then nothing happens. But

[07:13] if you add one hundred percent on top, that is, exactly that many more tokens to pour in, if you start selling, the price will stupidly double. You understand, therefore, we understand double. You understand, therefore, we understand that if there are few tokens in the market, you need to

[07:27] look at it very carefully. Yes, here again It's not enough, after all, this is 2022 and Yes, here again It's not enough, after all, this is 2022 and 2020. It's logical that there aren't many young people in the market, but nevertheless, it's necessary because stories are different and

[07:43] now, when there really aren't many of them, it's a wake -up call to think about it if you choose among what we see now. Then, perhaps, for example, look at 2021, we have

[07:55] perhaps, for example, look at 2021, we have auto and steak. That is, if you look purely because what percentage of the market, then I will definitely choose auto because I know that there will be no surprises with sudden unlocks here

[08:12] background, if there is a sharp unlock of 6.5 percent, no sharp fall will happen and also we look again and compare capitalization with the correction. These compare capitalization with the correction. These two facts are important to us

[08:27] because Looking at this correction, for example, we know that the price is 274 dollars and if the correction is 60 percent, Let's change the calculator and here we are, this

[08:40] means we take the current price. I will round it up there, 274, and I need to divide it by, there, 274, and I need to divide it by, remember 100 minus this number minus

[08:52] Correction, that is, 100 minus the correction, is 40 and divided by 100, that is, multiply by 0.4. I just immediately convert this matter to a percentage and here we convert this matter to a percentage and here we get 685, this is exactly the cost in

[09:05] general, if you did not understand these calculations, it does not matter. The important thing is that I show the connection between the token correction and the capitalization correction. That is, they are actually the same, that is, if we have a correction on the token price, then

[09:21] exactly the same correction. One to one. We have on the total capitalization, because capitalization is the number of tokens on the market multiplied by the current price, this will be the capitalization and the more it is inflated, the less likely it is that it will return

[09:36] to its previous values. Let's take a stake for example and we have its maximum capitalization, look, almost 80 million and this is like a hell of a lot of difference, quite significant, we will see later. Just what kind of

[09:51] project is 80 million, imagine. What a fall this is, and this is if now, for example, the price tag rises to the price for example, the price tag rises to the price that we had and the capitalization will be

[10:06] 80 million if we unlock all the currents, we need to repeat the knife again. Reason 5, the need to repeat the knife again. Reason 5, the capitalization is 400 million dollars and we'll see what kind of project this is. But 400 million with a full mission is simple.

[10:19] But this is a lot, that is, the project must be very, very serious to soar to 400 million and at the same time, look at it realistically, but this is For now, all this is very

[10:31] similar to some kind of shchitcoin. It has a huge correction, no exchange took it, it now has several capitalizations. But if we take the maximum with a full mission, this is 4 backgrounds, it’s like investing in it is

[10:46] really scary, so we are interested in those tokens in which there is a maximum number of tokens on the market from which you can’t expect any surprises. This is at this stage, then we will again look deeper and

[11:01] deeper. For now, we are interested in exactly this one. Look for yourself, such favorites as those who currently have few tokens on the market. We are not discarding them, we continue to analyze that they may turn out to be interesting later, so we will

[11:15] not stop there. Let's move on with our homework. What needs to be done is again duplicate the link to the table, traditionally add The capitalization column, which we've added here, is what our total figure is,

[11:29] added here, is what our total figure is, and we're adding the emission column, which I called the percentage in the market. This is the case. If you have any questions, you have any questions, write to me here, I'll answer them, and we'll

[11:43] move on. See you in the next lesson.

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