【The pitfalls I’ve stepped into—don’t follow｜Breaking down common misconceptions】
“Only a few cents—why is it cheaper than coins worth tens of thousands?” This kind of line can easily mislead beginners.
Unit price should be viewed together with circulating volume: unit price × circulating volume is what determines the circulating market cap. You also need to consider future unlocks, liquidity, and real-world utility.
A fully diluted valuation is not actually the money the project has received. Don’t just count the decimal points, and don’t treat a low unit price as evidence of upside.
#InvestmentMisconceptions
“Only a few cents—why is it cheaper than coins worth tens of thousands?” This kind of line can easily mislead beginners.
Unit price should be viewed together with circulating volume: unit price × circulating volume is what determines the circulating market cap. You also need to consider future unlocks, liquidity, and real-world utility.
A fully diluted valuation is not actually the money the project has received. Don’t just count the decimal points, and don’t treat a low unit price as evidence of upside.
#InvestmentMisconceptions