Discord Link – Join the Conversation Here
The small-caps chat is where Blockcircle members discuss projects with micro and small market capitalizations, known as small caps. Members can post about a project they have seen or are interested in or partake in an ongoing discussion.
There is no specific definition of what constitutes a small-cap but it’s generally accepted that market capitalization would be less than $100million and often closer to $10million. This can fluctuate to the lower side in a bear market and the higher side in a bull market.
Important Considerations for Small Caps
- High Risk, High Reward? Many small caps are at the very early stages of becoming a crypto project or the development of an idea. If successful they can do very well, if they fail as they often do, they can go to zero.
- Rapid Movements – Can go to zero at any time and often have low liquidity leading to high levels of volatility.
- Emergent Information – Often have little to no information as so new, relying on the word of sources, crypto Twitter or other players in the space. This lack of comprehensive data adds another layer of complexity and risk.
- Potential Pitfalls – From fundamental flaws in projects to anonymous teams, to outright criminal activity. Traders must be wary of the risks like rugpulls, scams, and project collapses.
Everything posted in the #small-caps-chat is provided by our members so it’s important to do your own research and don’t make any decisions based on what you read there.
