LESSON 193
What is fully diluted market cap and why should it be considered when analyzing tokens?
Fully Diluted Market Cap (FDV) is the market capitalization calculated taking into account all future tokens, including those not yet issued.
Why it's important:
Many projects release only a small portion of tokens into circulation, and the rest are held by the team, fund, and investors.
If the FDV is 10x the current capitalization, that's a signal that there will be a lot of pressure on the price as it unlocks.
Investors should evaluate the future inflation of the token to understand the risks.
Don't just look at price and turnover - look at the whole iceberg.