fdvexplained

Why "FDV" (Fully Diluted Value) is tricky

You might see a crypto project with a small market cap and think, 'Wow, what a steal!' 🤩 But if you ignore its Fully Diluted Value, you could be setting yourself up for a nasty surprise later. 😬
You know how a company can have 'potential' shares from stock options? Well, FDV in crypto is kinda like that!

It’s the total value of a project if every single token ever planned-even those locked up for future rewards or founders-was already in circulation.

So, while a project might look super affordable based on its current market cap, which only counts circulating tokens, many people get excited and forget about all those future tokens waiting to be released.

Therefore, ignoring FDV is like buying a small slice of a pie without knowing how many more slices will be cut and given away later.

Always compare the current market cap to the FDV.

If FDV is much, much higher, it means a lot more tokens are coming, potentially diluting your holdings and pushing the price down.

It's a huge 'Aha!' moment when you see why a coin with a tiny market cap can still have a gigantic FDV, and suddenly, you see the real picture.💡

#Tokenomics #CryptoEducation #FDVExplained #CryptoInvesting
- Disclaimer: Sharing knowledge and insights as part of learning and growing together. For educational purposes only, not financial advice.

FDV, or Fully Diluted Valuation, shows the total market value of a crypto project if all its tokens were in circulation. It helps you understand how big the project could be in the future.
🔸 Formula:
FDV = Max Token Supply × Current Token Price
For example, if a token has a max supply of 1 billion and each token costs $0.10, the FDV is $100 million—even if only 10% of tokens are released today.
📌 Be careful!
Some tokens look cheap now, but if their FDV is high, it means heavy dilution is coming. Always compare FDV with current Market Cap to check if a coin is fairly valued.