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Suppose I create a new ERC-20 token called FraudCoin and mint ten million units for an ICO. This process takes half an hour and costs virtually nothing.
The ICO results in the sale of one single unit to some fool for $1.
Market cap is the total number of units in circulation multiplied by the current market price of $1.
The market cap of FraudCoin is now $10,000,000.
Market cap is a meaningless stat.
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