Study Notes | Low Circulating Supply, High FDV
① A Binance Research report surveyed more than a dozen recently listed new tokens. At the time of listing, their circulating supply accounted for roughly 6% to 20% of their total supply.
② The report argues that low circulating supply combined with a high FDV can lead to excessive selling pressure in the future, making these tokens less favorable for ordinary investors.
③ Newly listed tokens with very low initial circulating supply are usually highly volatile. Only invest an amount you can afford to lose entirely.
$BNB 742.57 (+1.91%)
① A Binance Research report surveyed more than a dozen recently listed new tokens. At the time of listing, their circulating supply accounted for roughly 6% to 20% of their total supply.
② The report argues that low circulating supply combined with a high FDV can lead to excessive selling pressure in the future, making these tokens less favorable for ordinary investors.
③ Newly listed tokens with very low initial circulating supply are usually highly volatile. Only invest an amount you can afford to lose entirely.
$BNB 742.57 (+1.91%)