“Why do people often discuss ‘low circulating supply, high FDV’? Many can’t explain it!
‘Low circulating supply, high FDV’ means that only a small proportion of a token’s supply is in circulation when it launches, while its fully diluted valuation (FDV), calculated at the current price, is high.
When the circulating supply is low, a relatively small amount of money can drive up the price, inflating the valuation as well. Once large amounts of tokens are unlocked, much more money is needed to absorb the supply.
Only invest money you can afford to lose without it affecting your life.
$BNB 639.63(-3.8%)
#BNB
‘Low circulating supply, high FDV’ means that only a small proportion of a token’s supply is in circulation when it launches, while its fully diluted valuation (FDV), calculated at the current price, is high.
When the circulating supply is low, a relatively small amount of money can drive up the price, inflating the valuation as well. Once large amounts of tokens are unlocked, much more money is needed to absorb the supply.
Only invest money you can afford to lose without it affecting your life.
$BNB 639.63(-3.8%)
#BNB
