Can a custom token be priced however much the owner may want? Can the author put the price of $10k/unit on a token?

The question isn’t whether or not it’ll then be selling.

  • LufyCZ@lemmy.dbzer0.com
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    1 year ago

    When you create a liquidity pool, you set the initial price. If nobody has your token, people can’t sell it, only buy it, so that initial price becomes the bottom.

  • RayShio@lemmy.world
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    1 year ago

    Token creators don’t define any price. They do define things that influence the price like initial supply, inflation, etc. The market price will emerge from the interaction between those things and any demand that might exist for the token for whatever reason (usually just speculation). In short, supply and demand.

    Now, this is how it works for fungible tokens, like in the ERC-20 standard. If we’re talking about non-fungible tokens, or NFTs, creators usually define a price for “minting” (creating a new token in a collection). This initial minting price may or may not influence secondary sales.