Why is “low circulating supply, high FDV” so often discussed?
A report by Binance Research looked at more than ten recently launched tokens. At launch, their circulating supply accounted for only about 6% to 20% of their total supply.
Not long after the report was published, Binance said it welcomed listing applications from small and medium-sized projects with solid fundamentals, and that it would consider whether the initial circulating supply ratio was appropriate during its evaluation.
The key thing to remember when managing your positions: newly launched tokens with very low initial circulating supplies tend to be more volatile, so keep your investment to an amount you can afford to lose.
$BNB 748.57（+0.55%）
#BNB
Don’t use these as a basis for trading decisions.
A report by Binance Research looked at more than ten recently launched tokens. At launch, their circulating supply accounted for only about 6% to 20% of their total supply.
Not long after the report was published, Binance said it welcomed listing applications from small and medium-sized projects with solid fundamentals, and that it would consider whether the initial circulating supply ratio was appropriate during its evaluation.
The key thing to remember when managing your positions: newly launched tokens with very low initial circulating supplies tend to be more volatile, so keep your investment to an amount you can afford to lose.
$BNB 748.57（+0.55%）
#BNB
Don’t use these as a basis for trading decisions.