📎 Primary market | Low circulating supply, high FDV
· Key takeaway: A Binance Research report suggests that low circulating supply combined with a high FDV may lead to excessive selling pressure in the future, which is not ideal for ordinary investors.
· How it works: When circulating supply is low, relatively little capital can push prices up, inflating the valuation as well. Once large amounts of tokens are unlocked, far more capital is needed to absorb them.
· Watch out: Don’t compare a new token’s circulating market cap only with that of older projects to claim it’s “cheap.” Looking at its FDV may tell a different story.
$BNB 702.16（-2.15%）
#BNB
· Key takeaway: A Binance Research report suggests that low circulating supply combined with a high FDV may lead to excessive selling pressure in the future, which is not ideal for ordinary investors.
· How it works: When circulating supply is low, relatively little capital can push prices up, inflating the valuation as well. Once large amounts of tokens are unlocked, far more capital is needed to absorb them.
· Watch out: Don’t compare a new token’s circulating market cap only with that of older projects to claim it’s “cheap.” Looking at its FDV may tell a different story.
$BNB 702.16（-2.15%）
#BNB