Maxim Fedorov

Full company name: Bitget Limited

Founder: no information

Date of foundation: 2018

Headquarters: Singapore

Legal status: registration in the Cayman Islands

Capitalization: about 320 million dollars

Market geography: more than 50 countries of the world, with the exception of Hong Kong, Germany and the USA

Cryptocurrency exchange. Refers to the type of centralized exchanges. It has licenses for financial activities based on documents from Australia, the USA and Canada. The daily trading volume is about $7 billion.

A standard set of financial transactions is available on the exchange: spot, margin and futures trading, exchange transactions and training trading for beginners. A feature of the cryptocurrency exchange is the possibility of copy trading. This service allows traders to copy the successful operations of professional market players and earn up to 10% profit.

BGB token. A custom token that is used to reward users. The token is used for staking, to receive discounts on trading operations, and as collateral for partners of the crypto company.

Bitget Launchpad. Own platform for launching new projects in the crypto industry. It allows startups to find funding in the early stages of formation, and investors to get shares of startups at low prices. Before the start of token sales, crypto projects are checked by the company, which reduces the risk of buying fraudulent tokens or extremely weak projects.

Market capitalization of the joint-stock company. This includes the market value of all shares of the company. It is calculated by the formula: number of shares * current price of one share.

The market capitalization of a security. For evaluation, the stock exchange quote is most often used.

Market capitalization of the stock market. It is estimated by adding the value of all securities in a particular market.

• Split-rate capitalization is used to estimate projected cash flows for the same asset using two different interest or discount rates.
• Capitalization of earning is a method of calculating the present value of net income expected to be earned in the future.
• Straight-line capitalization is a method of calculating the capitalization ratio for real estate by adding a straight-line return on capital to the interest rate.
• Direct overall capitalization This method is based on dividing the net operating income by the ratio obtained as a result of the analysis of comparable properties and comparing the income from these properties with their selling prices.

Market capitalization is most often the main characteristic of the success of companies for those. However, valuing a company on the basis of this indicator alone is erroneous. Many executives resort to tricks, such as taking on large loan commitments, to increase capitalization. This helps them to attract new funds in the stock markets, but this does not guarantee the success of their further development.

Individually, the market capitalization of a stock, company, or stock market may increase in line with investors' expectations or fears. An example here is the dot-com bubble, where many companies showed huge capitalization, but at the same time did not make a profit. Some experts believe that a similar situation is developing in the crypto industry today.

The bubble burst on March 10, 2000, when the NASDAQ Composite index fell, although it had doubled its annual performance before that. Along with the fall, most Internet companies went bankrupt. Some of them have been liquidated or sold. Some executives were even convicted of fraud and embezzlement. Even very large players such as WorldCom and NorthPoint Communications have suffered. This was due to the fact that most business models were not focused on improving or creating business processes, but only on advertising campaigns and attracting more and more new investors.

Some experts believe that almost the same processes that took place during the Dot-com bubble are taking place in the crypto industry. They note many similar signs and predict a big crisis in this industry, predicting the bankruptcy of more than 60% of all crypto projects.

The Dot-com bubble started in 1993 with the first release of the Mosaic browser. More and more people were purchasing computers for their homes, and more of them were beginning to master the technology of the Internet. Shares of Internet companies began to rise up. The popularization of the new technology gave impetus to the emergence of hundreds of new companies that easily found investors, entered the stock market and actively increased their capitalization. It was then that such giants as Amazon (1994) and eBay (1995) were born. It seemed that the Internet increases the income of any company at times. Big business also succumbed to the temptation, starting to introduce it into their business processes.

Initially, the Internet was seen as a tool for the implementation of a business process that gives a new impetus to development. However, then the Internet began to be perceived not as a tool, but as a business process itself, capable of generating income from invested capital. And everyone began to use it, especially young companies. Instead of finding and solving the problems of business and society, they offered various variations of the Ponzi scheme. And up to a certain time it worked.