If we were to launch a crypto coin and had £1.5 million of it bought, whilst we kept 50%. How much would that 50% be worth?

Valuation of Retained Crypto Coin Holdings

When launching a new cryptocurrency, understanding the value of retained holdings is crucial. If you have sold £1.5 million worth of your crypto coin and retained 50% of the total supply, here's how you can determine the value of your retained holdings.

Calculation of Retained Holdings Value

1. Total Market Value:

   • If £1.5 million represents the 50% of the coin that was sold, the total market value of the coin is double that amount.
   • Total Market Value = £1.5 million * 2 = £3 million

2. Value of Retained Holdings:

   • Since you retained 50% of the coin, the value of your holdings is also 50% of the total market value.
   • Value of Retained Holdings = £3 million * 50% = £1.5 million

Key Points

• Market Value: The total market value of the coin is determined by the amount sold and the percentage of the total supply it represents.
• Retained Value: By retaining 50% of the coin, you effectively hold a value equal to the amount sold, assuming the market value remains constant.

Example Scenario

Consider a scenario where a new cryptocurrency is launched, and the initial sale raises £1.5 million. The creators retain 50% of the total supply. The retained holdings are valued at £1.5 million, assuming no change in market conditions.

Factors Influencing Value

• Market Demand: The value of your retained holdings can fluctuate based on market demand and trading activity.
• Market Conditions: External factors such as regulatory changes, market trends, and investor sentiment can impact the overall market value of the coin.

Conclusion

By retaining 50% of the cryptocurrency, you hold a significant portion of the total market value, equating to £1.5 million based on the initial sale. This valuation is subject to change with market dynamics and should be monitored regularly to assess potential gains or losses.