Everyone thinks a $670M FDV means $670M poured into a token, but actually that number is only a theoretical valuation.
That misunderstanding can make traders chase inflated launches, buy from FOMO, and get trapped when locked tokens enter circulation.
1. FDV multiplies the current token price by the entire supply, including tokens that are still locked. Think of it like pricing every apartment in a building based on the last unit sold.
2. A $670M FDV does not mean buyers invested $670M. Actual liquidity and market cap may be far smaller, so even modest selling can move the price sharply.
3. Before buying $ETH, $SOL, or any new token, compare FDV with circulating market cap and check the unlock schedule. A large gap can signal future dilution, like adding more slices to the same pizza.
What’s your take on using FDV to evaluate a token?
#CryptoEducation #Tokenomics #CryptoTrading
That misunderstanding can make traders chase inflated launches, buy from FOMO, and get trapped when locked tokens enter circulation.
1. FDV multiplies the current token price by the entire supply, including tokens that are still locked. Think of it like pricing every apartment in a building based on the last unit sold.
2. A $670M FDV does not mean buyers invested $670M. Actual liquidity and market cap may be far smaller, so even modest selling can move the price sharply.
3. Before buying $ETH, $SOL, or any new token, compare FDV with circulating market cap and check the unlock schedule. A large gap can signal future dilution, like adding more slices to the same pizza.
What’s your take on using FDV to evaluate a token?
#CryptoEducation #Tokenomics #CryptoTrading
