Trading Insight_News
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How To Value A DePIN Project? What Is The FDV/Revenue Ratio?
How do you distinguish between an Overvalued DePIN token and a hidden gem? Do not use traditional stock P/E or standard Market Cap; use FDV/Revenue.
🔸 DePIN projects often have token emission schedules spanning decades to incentivize miners. Current Market Cap is usually small, but FDV is the real figure reflecting future inflationary weight.
Fully Diluted Valuation(FDV) = Max Supply x Price
The FDV/Revenue ratio is the most accurate indicator of the value of a DePIN project.
🔸 Two scenarios clearly reveal the naked truth about revenue..
Scenario A $1 Billion FDV, but actual Revenue is only $1,000/month 👉 This is a Bubble. Valuation is based on Hype, not reality.
Scenario B $100 Million FDV, generating $500,000/month in Revenue 👉 This is a Bargain. Real cash flow supports the token value.
🔹 In the DePIN gold rush, look for projects with the lowest FDV/Revenue ratios. These are the projects generating real profit but are currently overlooked by the market.
Are you betting your money because the chart looks green, or because actual revenue figures prove an effective business model?
News is for reference, not investment advice. Please read carefully before making a decision.
🔸 DePIN projects often have token emission schedules spanning decades to incentivize miners. Current Market Cap is usually small, but FDV is the real figure reflecting future inflationary weight.
Fully Diluted Valuation(FDV) = Max Supply x Price
The FDV/Revenue ratio is the most accurate indicator of the value of a DePIN project.
🔸 Two scenarios clearly reveal the naked truth about revenue..
Scenario A $1 Billion FDV, but actual Revenue is only $1,000/month 👉 This is a Bubble. Valuation is based on Hype, not reality.
Scenario B $100 Million FDV, generating $500,000/month in Revenue 👉 This is a Bargain. Real cash flow supports the token value.
🔹 In the DePIN gold rush, look for projects with the lowest FDV/Revenue ratios. These are the projects generating real profit but are currently overlooked by the market.
Are you betting your money because the chart looks green, or because actual revenue figures prove an effective business model?
News is for reference, not investment advice. Please read carefully before making a decision.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.