๐ How to Evaluate Coins on Binance Alpha?
Hey friends! I want to share some basic rules. Maybe you already know them โ but if not, listen up!
1. Market Capitalization
๐ The lower the cap โ the bigger the potential for a rebound. But thereโs more to it.
๐ Look at the FVD (Fully Diluted Valuation):
โข If market cap โ FVD โ ๐ฐ good sign โ possible buy.
โข If FVD is much higher, then:
๐ธ Check how many tokens are in circulation.
๐ธ Compare that to the total supply.
That usually means only a small portion of the tokens are in the open market. The rest will be released gradually โ similar to spot trading mechanics.
๐ So: low cap is only a good sign after some time from listing, when tokenomics become clearer
โ Example:
Letโs say a coin just launched:
โข Circulating supply: 10M
โข Total supply: 100M
โข Price: $0.05
โข Market cap: $500K
โข FVD: $5M
At first glance, $500K market cap looks juicy. But since only 10% of the tokens are in circulation, FVD is 10x higher. So this project might face strong sell pressure once more tokens unlock.
Tip: Wait a few weeks, monitor unlock schedules and volume โ thatโs when youโll see the real market reaction.
โ ๏ธ This is NOT financial advice!
Always do your own research (DYOR) before investing. Crypto is risky, and responsibility is yours alone.
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