If you can't differentiate between (MCAP and FDV), you will often
You lose, especially if you are a long-term investor
Save this post because it is very, very important 🤝🏻
Most investors look at the market value
Before buying, they overlook something important, which is the FDV value
The FDV refers to the market value of the project
After all currencies are launched for trading in the market
To calculate the FDV value of any project as follows 👇
FDV = price of the currency X total number of currencies
Unlike the market value which is calculated as follows 👇
MCAP = number of currencies issued X price of the currency
Projects when they first launch for trading are often
The supply of the currency is 5 - 10% and the rest is locked
For companies and project owners
Note: ‼️
Some projects provide services like Defi projects
A group of currencies is locked as incentives for liquidity providers or for storage rewards and the ecosystem.
This means the market capitalization (MCAP) is the value
The project (current) does not represent its true value,
The price starts to drop after the gradual opening of currencies if
This opening was not for services that deserve to be unlocked!!
And to track the launch dates of currencies and the quantities, there is an important tool
@Tokenomist_ai will help you with this
If Crypto Rank has a vesting section about
You can see the tokenomics of the currencies.
How to protect yourself when buying and investing 🧠👇
▫️ Avoid speculation of technical analysis
▫️ Always buy using the DCA method and do not
Relying on a single entry point
▫️ Avoid projects where the FDV value is larger
Much higher than the market value (Investment, not speculation)
▫️ For investment, try to find projects where the value
Market value is close to (TVL)
And that's it 🤍🙏