One of the “revelations” of 2024 was Jasmy Coin (JASMY). Although it has been listed on cryptocurrency exchanges for 3 years, this year it attracted attention due to its price rise that led it to enter the top 100 of digital assets with the highest market capitalization. This week, JASMY once again stands out as (after Notcoin) the second digital asset with the highest price increase (more than 50% in 7 days). JASMY is an ERC-20 token, that is, it «lives» on the Ethereum network. As BitcoinDynamic has explained, It is the token of a Japanese project that has no clear utility.
The website of the issuing organization of this digital asset shows that it has links to the “Internet of Things” industry, but it only describes generalities that are not entirely clear or provide specific data on what JASMY is for. Even, There it is said that JASMY is «considered the bitcoin of Japan», as seen in the following image:
Screenshot of Jasmy's website. Source: Jasmy – Automatic translation by Google. Anyone with minimal knowledge on the subject knows that an ERC-20 token is far from being comparable to bitcoin, due to an infinite number of technical, monetary, adoption, historical, etc. factors. Although, at first glance, you may think that JASMY is something that should not be taken too seriously, The market does not always act with the rationality that everyone would like.. The rise in price of this digital currency (like the rise in price of several memecoins, for example) is an example of this. The following graph, provided by TradingView, shows How the JASMY price has increased since 2023:
JASMY price since January 2023. Source: TradingView. Given these increases, many also observe the JASMY historical chart. It is striking that, Despite everything it has grown in recent months, it is still very far from its historical maximum pricewhich is above 4 dollars.
JASMY price history chart. Source: CoinMarketCap.
A historic opportunity or just fantasies?
It is evident that JASMY price should multiply more than 100 times in order to reach at least its all-time high. Is this the biggest investment opportunity of the moment? Or should some other factors be taken into account? If we search social network X (previously called Twitter) for posts related to JASMY, we observe that many fantasize about seeing this digital currency setting new all-time highs. For example, a user writes the following:
«JASMY, since July 2021, the price has been consolidating between 0.01 and 0.005. This is a solid 2 year consolidation. The all-time high (ATH) is $4.29. JASMY will be a 100x-1000x investment in this bull cycle, mark my words! I trust this wholly owned Japanese company with ex-Sony CEOs. Do not miss it!» Super Pogi.ron (@Westzy5), user of the social network
It sounds tempting! No? If what this tweeter says is true, then someone who invests $1,000 in JASMY could end the bullish cycle with an amount ranging between $100,000 and $1 million. But, unfortunately for those who have fantasies of quick and easy money, These arguments leave aside many issues that should be taken into account..
Market capitalization is the key
Market capitalization represents the total value of all coins in circulation of a specific cryptocurrency. For example, if a cryptocurrency has 1 million coins in circulation and its price is $10 per coin, its market capitalization would be $10 million. In the case of JASMY, the market capitalization is, at the time of this writing, $1,721,818,929 (this reads «one billion seven hundred twenty-one million eight hundred eighteen thousand nine hundred twenty-nine»). It is a very high capitalization considering that it is a token that – as mentioned – does not have a clear utility but is promoted as «the Japanese bitcoin.» What would happen if each unit of JASMY went back to $4.29? To find out, let's simply multiply the number of JASMY in existence (which is around 50,000,000,000) by 4.29.
JASMY Market Cap Calculation if it reached a new ATH – Source: Windows Calculator Screenshot.
If JASMY were to return to its all-time high, as anyone can verify, it would reach a market capitalization of $214.5 billion. Could that be possible? The strict answer is that, if the market decided so, yes, it would be possible. Would that be likely? Not at all. To put it in perspective, the following graph taken from the CoinMarketCap portal shows the Market capitalization of the 10 most valuable cryptocurrencies and tokens in the world:
The 5 most valuable cryptocurrencies and tokens in the world. Source: CoinMarketCap.
JASMY at $4.29 would have a higher market cap than USDT, the most popular stablecoin in the world, which has been cataloged by the company CoinMetrics as «a key piece of the global financial system.» At that price, JASMY would only be surpassed by ether (ETH), which is the native cryptocurrency of the network itself in which the token «lives» (which, despite being promoted as «the Japanese bitcoin» does not even have own network). The probabilities of something like this happening tend to be zero (this is not an opinion but a fact). Therefore, Any «prediction» that is read on social networks saying that JASMY will reach its ATH in this bullish cycle, should be rejected by any investor with common sense and desire not to lose money.
Why did JASMY reach such a high ATH years ago?
The answer to the question in this intertitle is easily explained. When JASMY was launched, not all of the circulation was issued. That is, not all the JASMY coins that currently exist existed. Therefore, each unit of the token could have a high face value and that did not mean that the total capitalization of the coin was too large. The following graph, also provided by the CoinMarketCap platform, shows How the market capitalization of Jasmy Coin has changed over time:
JASMY market capitalization over time – Source: CoinMarketCap. It is that, for several years, JASMY was a highly inflationary currency, with periodic token releases that caused supply to increase (and do so much faster than demand). For this reason, the circulation of JASMY that currently exists is much greater than it was years ago. Nowadays, the situation has changed and 98.60% of the circulation of this digital currency is already on the market. The full distribution would end—if no changes are made to the protocol—in 2025. Therefore, the effect of inflation is something that is already behind us. Furthermore, as BitcoinDynamic has shown, there are intentions to establish token blocking mechanisms, which would reduce circulation and could have an impact on the market. While all of this may lead to JASMY appreciation, too many changes would have to be made to its tokenomics for it to realistically be thought to reach its all-time highs above $4 again. As long as this does not happen – and there are currently no plans for it to happen – it will be advisable to dismiss the crazy and super bullish predictions that can be read on social networks, and made by self-proclaimed «analysts» who are not very informed.