Micro Cap

Micro cap is a label for companies or crypto assets whose total market capitalization is very small. In stock markets the term usually covers companies worth roughly 50 million to 300 million dollars, below small-cap stocks, with even smaller firms called nano caps; the exact limits vary between index providers and brokers. In crypto, "micro cap" loosely describes tokens far down the market-capitalization rankings, often newly launched, with few exchange listings and shallow order books. Such assets can move by large percentages on modest trades, which attracts speculators but also makes them easy targets for pump-and-dump schemes. Information about micro-cap issuers is often thin, and in the United States many trade over the counter with lighter disclosure. Also see mid cap and large cap.