Back to glossary

Hidden cap

Hidden cap refers to the maximum quantity of tokens or coins that a crypto project can issue or create, when this information is not readily available in the project’s documentation or whitepaper, leading to uncertainty and potential risks for investors and traders.

This lack of transparency can make it challenging to accurately evaluate the asset’s potential value and sustainability over the long term. The absence of a clear understanding of a cryptocurrency’s total supply can also make it difficult to calculate metrics such as market capitalization and understand the potential dilution of existing token holders.

Without a clear knowledge of the total supply of a cryptocurrency, it can be challenging to accurately calculate metrics such as market capitalization or fully understand the potential dilution of existing token holders.