🔍 What is FDV and why is it important
You see a token priced at $0.5 with a market cap of $50M and think "cheap"? Stop. Look at FDV — Fully Diluted Valuation. This gives you the real picture of what the project will be worth when all tokens are in circulation.
FDV = current price × total token supply (including locked tokens). If there are currently 100M tokens in circulation out of a total supply of 1B, then FDV will show the market cap at full unlock.
📊 Practical example:
Token XYZ is trading at $1
• Market Cap: $100M (100M tokens in circulation)
• Total Supply: 1B tokens
• FDV: $1 × 1B = $1B
This means that at the current price, the project is valued at a billion dollars! For comparison — that’s more than many public companies.
A high FDV signals potential selling pressure during unlocks. When locked tokens hit the market, the price could seriously drop due to increased supply.
🎯 Golden rule: always compare Market Cap and FDV. If the difference is greater than 5-10x — be cautious. This could be a ticking time bomb.
What maximum FDV to Market Cap ratio do you consider acceptable for investments? 🤔
#FDV #токеномика #DYOR #криптоанализ #BinanceSquare
You see a token priced at $0.5 with a market cap of $50M and think "cheap"? Stop. Look at FDV — Fully Diluted Valuation. This gives you the real picture of what the project will be worth when all tokens are in circulation.
FDV = current price × total token supply (including locked tokens). If there are currently 100M tokens in circulation out of a total supply of 1B, then FDV will show the market cap at full unlock.
📊 Practical example:
Token XYZ is trading at $1
• Market Cap: $100M (100M tokens in circulation)
• Total Supply: 1B tokens
• FDV: $1 × 1B = $1B
This means that at the current price, the project is valued at a billion dollars! For comparison — that’s more than many public companies.
A high FDV signals potential selling pressure during unlocks. When locked tokens hit the market, the price could seriously drop due to increased supply.
🎯 Golden rule: always compare Market Cap and FDV. If the difference is greater than 5-10x — be cautious. This could be a ticking time bomb.
What maximum FDV to Market Cap ratio do you consider acceptable for investments? 🤔
#FDV #токеномика #DYOR #криптоанализ #BinanceSquare