Someone asked: “Why is ‘low circulating supply, high FDV’ always being discussed?”
My answer: A Binance Research report reviewed more than ten recently listed tokens. At listing, their circulating supply accounted for only about 6% to 20% of their total supply. When circulating supply is low, a relatively small amount of capital can push prices up, inflating valuations; when large amounts of tokens are unlocked, more capital is needed to absorb them.
$BNB 748.67（+1.17%）
If anything wasn’t clear, let me know in the comments.
#BNB
My answer: A Binance Research report reviewed more than ten recently listed tokens. At listing, their circulating supply accounted for only about 6% to 20% of their total supply. When circulating supply is low, a relatively small amount of capital can push prices up, inflating valuations; when large amounts of tokens are unlocked, more capital is needed to absorb them.
$BNB 748.67（+1.17%）
If anything wasn’t clear, let me know in the comments.
#BNB
