Only a little over ten percent of the tokens are in circulation at launch. What happens to the rest?
“Low float, high FDV” refers to tokens having a very low circulating supply at launch, while their fully diluted valuation (FDV), calculated at the current price, is very high.
Here’s the key: when looking at a new token, first calculate the ratio of its circulating market cap to its FDV, then check its unlock schedule for the coming year.
This report on “low float, high FDV” comes from Binance Research. $BNB is the native token of the Binance ecosystem.
It’s best to invest only money you can afford to lose without affecting your livelihood.