Why is “low float, high FDV” always being discussed? Many people can’t explain it!
A report by Binance Research reviewed more than a dozen tokens recently listed, whose circulating supply at listing was only about 6% to 20% of their total supply.
When the circulating supply is low, even a small amount of capital can push prices up, inflating valuations; once large amounts of tokens are unlocked, much more capital is needed to absorb them.
Keep your position size within your means, and leave yourself an exit route.
$BNB 640.1（-3.72%）
A report by Binance Research reviewed more than a dozen tokens recently listed, whose circulating supply at listing was only about 6% to 20% of their total supply.
When the circulating supply is low, even a small amount of capital can push prices up, inflating valuations; once large amounts of tokens are unlocked, much more capital is needed to absorb them.
Keep your position size within your means, and leave yourself an exit route.
$BNB 640.1（-3.72%）
