“Low float, high FDV”—why does it keep coming up? Many people can’t answer!
“Low float, high FDV” means that only a small proportion of a token’s supply is circulating when it lists, while its fully diluted valuation (FDV), based on the current price, is high.
When the circulating supply is small, relatively little capital can push the price up, inflating the valuation. Once large amounts of tokens are unlocked, much more capital is needed to absorb them.
Size your position according to your risk tolerance, and leave yourself plenty of room.
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