An altcoin can have a tiny price tag and still be expensive. 🧮
Hypothetical example:
• Token price: $0.10
• Circulating supply: 100 million → $10 million market cap
• Total supply: 1 billion → $100 million fully diluted valuation (FDV)
That gap is a prompt to investigate, not an automatic sell signal.
Before buying, check:
1. How many tokens unlock next month relative to circulating supply?
2. Who receives them, and what incentives might they have to sell?
3. Is there enough order-book depth to absorb selling without large price moves?
Unlocks do not guarantee a price drop. They can already be priced in, and unlocked tokens are not always sold. But ignoring supply changes means evaluating only half the story.
Market cap is not cash invested. FDV is not a price target. And a low unit price is not proof of a bargain.
What do you check first: token supply, liquidity, or demand?
#CryptoEducation #Altcoins #Tokenomics #RiskManagement
Hypothetical example:
• Token price: $0.10
• Circulating supply: 100 million → $10 million market cap
• Total supply: 1 billion → $100 million fully diluted valuation (FDV)
That gap is a prompt to investigate, not an automatic sell signal.
Before buying, check:
1. How many tokens unlock next month relative to circulating supply?
2. Who receives them, and what incentives might they have to sell?
3. Is there enough order-book depth to absorb selling without large price moves?
Unlocks do not guarantee a price drop. They can already be priced in, and unlocked tokens are not always sold. But ignoring supply changes means evaluating only half the story.
Market cap is not cash invested. FDV is not a price target. And a low unit price is not proof of a bargain.
What do you check first: token supply, liquidity, or demand?
#CryptoEducation #Altcoins #Tokenomics #RiskManagement