
Problems with crypto market capitalization metric and potential solutions - arbitcoin
https://medium.com/chainrift-research/chaff-from-the-wheat-towards-improved-cryptocurrency-valuation-metrics-2e347a93f8e2
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menzoic
This is a poor quality article with lots of weird assertions.

> "All new forks initially inherit their parent blockchain’s market cap,
> regardless of their own merit, value, utility, initial uptake, use,
> liquidity, etc."

Forking a coin in no way assigns any monetary value to it. It can't even have
a real market cap until it's price is set by market demands. The only part of
market cap that gets carried over is the supply.

"...anyone who can trivially fork Bitcoin (and get their shiny new shitcoin
listed on an exchange) to create an alt-coin with apparently equal valuation
to BTC. This works at least for a time, until other longer-term market forces
inevitably act to bring the new asset into a more realistic valuation"

Weird to mention that forking is trivial in the same sentence (and condition)
as getting it listed on an exchange. Getting a coin listed on a legitimate
exchange is extremely non-trivial. And again it would not have equal
valuation. It has no valuation until the market demands it.

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arbitcoin
I have updated the wording of the original article to further clarify the
nature of coin inheritance as it pertains to market cap.

The remainder of the article remains largely unaffected by the original poor
choice of words regarding market cap inheritance.

As for the quality of the article, I beg to differ. Alot of time went into its
research and presentation. Additionally, it was reviewed by a number of active
crypto-researchers (as well as yourselves) and revised according to feedback.

Thank you for taking the time to read and leave comments, which have led to
improvements to the ideas expressed in the article.

~~~
menzoic
Thanks arbitcoin! Refreshing to see feedback taken to improve content even
though I was a bit harsh. That's a great personal attribute that leads to
growth and mastery, I wish most people were like that.

