What is fully diluted market capitalization and why should it be considered when analyzing tokens?
Fully diluted market capitalization (FDV) is the market cap calculated considering all future tokens, including those that have not yet been issued.
Why it is important:
Many projects release only a small portion of the circulating tokens, while the rest are held by the team, funds, and investors.
If the FDV is 10 times higher than the current market cap, it is a sign that there will be significant selling pressure as the tokens are unlocked.
Investors should assess the future inflation of the token to understand the risks.
Don't just look at the price and trading volume: observe the entire iceberg.
