Why is “low float, high FDV” so often discussed?
A report by Binance Research says that a low circulating supply combined with a high FDV could lead to excessive selling pressure in the future, making it less favorable for ordinary investors.
Shortly after the report was published, Binance said it welcomed applications from small- and mid-sized projects with solid fundamentals, and that it would consider whether the initial circulating supply ratio was appropriate during its evaluation.
The most important thing to remember when managing your funds: don’t judge whether a new coin is “cheap” by comparing its circulating market cap with that of established projects. Looking at its FDV could tell a very different story.
$BNB 738.17（-0.34%）
#BNB
A report by Binance Research says that a low circulating supply combined with a high FDV could lead to excessive selling pressure in the future, making it less favorable for ordinary investors.
Shortly after the report was published, Binance said it welcomed applications from small- and mid-sized projects with solid fundamentals, and that it would consider whether the initial circulating supply ratio was appropriate during its evaluation.
The most important thing to remember when managing your funds: don’t judge whether a new coin is “cheap” by comparing its circulating market cap with that of established projects. Looking at its FDV could tell a very different story.
$BNB 738.17（-0.34%）
#BNB