**FDV: why a "cheap" token can be worth more than Ethereum** 💸
See a token at $0.05 and think "cheap"? What if I tell you it could be worth more than all of Ethereum? Meet FDV — Fully Diluted Valuation.
FDV shows how much a project will be worth when ALL tokens are in circulation. The formula is simple: current price × max token supply. Many only look at market cap (price × tokens in circulation), but that’s a trap.
Imagine: a token is priced at $1, with 100 million coins in circulation (market cap = $100 million), but the max supply is 50 billion! FDV = $50 billion. That’s more than Ethereum. When the other tokens unlock, the price will crash from inflation.
Red flags for FDV:
🚩 FDV is 10+ times greater than market cap
🚩 Large unlocks in the coming months
🚩 FDV exceeds that of the top 10 cryptocurrencies
Golden rule: compare projects by FDV, not by token price. A coin at $0.01 with an FDV of $10 billion is worth more than a coin at $100 with an FDV of $1 billion.
Smart money always looks at FDV. Now you’re in the know 😉
What’s the biggest gap between market cap and FDV you’ve seen in your investments?
#FDV #токеномика #DYOR #криптообразование #BinanceSquare
See a token at $0.05 and think "cheap"? What if I tell you it could be worth more than all of Ethereum? Meet FDV — Fully Diluted Valuation.
FDV shows how much a project will be worth when ALL tokens are in circulation. The formula is simple: current price × max token supply. Many only look at market cap (price × tokens in circulation), but that’s a trap.
Imagine: a token is priced at $1, with 100 million coins in circulation (market cap = $100 million), but the max supply is 50 billion! FDV = $50 billion. That’s more than Ethereum. When the other tokens unlock, the price will crash from inflation.
Red flags for FDV:
🚩 FDV is 10+ times greater than market cap
🚩 Large unlocks in the coming months
🚩 FDV exceeds that of the top 10 cryptocurrencies
Golden rule: compare projects by FDV, not by token price. A coin at $0.01 with an FDV of $10 billion is worth more than a coin at $100 with an FDV of $1 billion.
Smart money always looks at FDV. Now you’re in the know 😉
What’s the biggest gap between market cap and FDV you’ve seen in your investments?
#FDV #токеномика #DYOR #криптообразование #BinanceSquare