Crypto thrives on hype. Every cycle, there's a new batch of tokens wrapped in flashy branding, promising innovation. But underneath the marketing, the same game plays out—VCs and insiders win, while retail investors get left holding the bag.
This time, it’s $GUN . At first glance, it looks promising. But under the surface, the numbers tell a different story: an absurdly high fully diluted valuation (FDV) and a dangerously low circulating supply.
Market Cap: $60M
Fully Diluted Valuation (FDV): $1.2B
Supply Controlled by Insiders: Nearly 50% (Private Investors, Founders, KOLs)
The Low Circulating Supply Problem
Right now, only a tiny portion of GUNZ tokens are actually in circulation. This creates several major risks:
Price manipulation – With so few tokens available, the price can be artificially pumped.
Insider control – The majority of tokens are held by early investors, who can dump at will.
False scarcity – The low float creates the illusion of strength, but it's a setup for a sell-off.
Low float projects can look great at first—until token unlocks start flooding the market. That’s when reality hits, and prices crash rapidly .
The Low Float, High FDV Trap
We’ve seen this movie before. Projects with sky-high FDVs and tiny circulating supplies have taken brutal hits this cycle. Why?
VCs and insiders get massive pre-sale allocations at dirt-cheap prices (10-50x lower than launch).
Only 5-10% of supply is in circulation, while the rest sits locked, waiting to be dumped.
When the unlocks begin, liquidity dries up, and retail gets crushed.
Just look at other high-FDV projects:
MANTA – Pumped, then collapsed after unlocks.
DYDX – Faced brutal sell-offs as early investors cashed out.
BICONOMY – Saw an initial spike, then months of slow bleeding.
The pattern is clear: low float, high FDV projects are built for VCs—not for retail traders.
Why Tokenomics Matter (And How GUNZ Gets It Wrong)
A project's long-term viability hinges on its tokenomics. Unfortunately for GUNZ holders, the setup heavily favors insiders.
Here’s why:
Over 50% of supply is insider-controlled – Private investors, founders, and influencers hold the majority. That’s an instant red flag.
Unlock schedules are designed for dumping – Once vesting periods end, massive sell pressure will flood the market.
No real demand to absorb selling pressure – Without strong utility or organic demand, prices will plummet.
Retail gets stuck in an exit liquidity loop – Buying at inflated prices while insiders cash out.
If you're betting on GUNZ going to the moon, ask yourself: who's buying after you? If the answer is just more retail traders, that’s a classic Low float Pamp-damp structure.
The Consequences
What happens to a token with bad tokenomics, high FDV, and a low float? The same thing that always happens:
Early hype creates FOMO – The low circulating supply makes it easy to drive up the price.
VCs & insiders start unlocking – They’ve been waiting for this moment to offload their tokens.
Price collapses – The market realizes demand isn’t strong enough to sustain the selling pressure.
Long-term holders get wrecked – Unless there's real utility and demand, the project fades into irrelevance.
We are not giving you indication of shorting Gunz or anything, these are the information publicly avilable and only sharing our opinion as team just missed the opportunity. They have a successful game under their belt and they just ruined the momentum.