Kakao Klay Coin Analysis: What Are Its Circulating Supply and Total Supply? And Its Market Cap?
4 min read · · Korean original
Contents 5
Kakao's coin, Klay (KLAY), has surged more than 3x in just one week. Investors flocked in after rumors spread that Klay, which had been moving sideways around its low in the KRW 200 range a week ago, would be listed on Upbit. Visitor numbers to the related post I had published also spiked. This wave of interest is now turning into a wave of buying, and as of this moment, the price of Klay has broken through KRW 700. Is it okay to buy Klay coin now? What exactly are its circulating supply and total supply, and what would be a fair price?
Klay's Price and Market Cap at the Time of the Airdrop
First, Kakao's Klay became known to the public and was listed on crypto exchanges including Coinone this past June. As the crypto wallet Klip was built into KakaoTalk, Klay coin's price shot up to KRW 498 at the time. Klay's 'current' total supply is 10 billion coins, which puts its market cap at KRW 5 trillion based on the earlier price, and KRW 7 trillion based on the current price.
(For reference, it was sold to institutions at $0.02 in Round 1, $0.06 in Round 2, and $0.08 in the private sale. Compared to Round 1, it's now up about 35x.)
- Sign up for Coinone and buy Kakao Klaytn (10% fee discount): coinone.co.kr/user/signup
Analyzing Klay's Supply of 10 Billion Coins
According to the Klay whitepaper, the total supply is 10 billion coins. Of these, 54% is allocated to users and service providers, 34% to Governance Council rewards, and 12% to other project funds. The amount released through this Klip airdrop is 10 million coins, equal to 0.01% of the total supply.
Klay issues 300 million new Klay every year. What this means is that the 'current' supply is 10 billion coins, and 300 million are added to it each year. Let's quickly run the numbers on price. At 10 billion coins and KRW 700 each, the current market cap comes to KRW 7 trillion. If you're curious how big that is, take a look at the image below.
This is the current coin ranking sorted by market cap. A market cap of KRW 7 trillion would push past Chainlink in 5th place and take that spot. In 4th is Tether with a market cap of KRW 10 trillion, 3rd is Ripple at KRW 12 trillion, 2nd is Ethereum at KRW 43 trillion, and 1st is Bitcoin at KRW 214 trillion.
Analyzing Klay's Circulating Supply
So now, the thing we need to look at is the circulating supply. The problem is that there's no way to know the circulating supply exactly. All we have is a rough estimate that about 1 billion tokens are in circulation so far. In that case, based on circulating supply, Klaytn is currently worth KRW 700 billion.
What's a Fair Price for Klay Coin?
So what's a fair price for Klay coin? I'm sorry, but nobody can know that. That said, the market currently looks quite overheated. So many investors have poured in that it tripled in a week, but a sharp rise is always followed by a sharp fall. The judgment is up to each of you, and I believe the results that follow will be each person's own as well. In my personal opinion, the market cap has formed far too high relative to the current supply, and since proper circulating supply and token distribution haven't been disclosed, it seems wise to be cautious about investing.
How to Buy Klay Coin
Klay coin is currently listed on crypto exchanges such as Coinone. It's also listed on smaller exchanges like GDAC and Bitsonic, but it's better in many ways to use major Korean exchanges such as Upbit, Bithumb, and Coinone whenever possible. If you trade coins like Bitcoin and Ethereum, Binance is also a good choice.
So buying Klay coin on Coinone looks like the best option right now. I'm leaving a link that gets you a 10% fee discount. It includes my referral code, and you need to enter the code for the 10% fee discount to apply.
- Sign up for Coinone and buy Kakao Klaytn (10% fee discount): coinone.co.kr/user/signup
