IMPORTANT POST
WHERE DID THE 100X CRYPTO
PROJECTS GO ? WHY RETAIL DON’T
CARE ABOUT BIG FUNDAMENTAL
PROJECTS ANY MORE ? WHY THE
SENTIMENT IS SO LOW ?
Simple - all These High FDV Project
Launches Are now Pushing Retail
Investors Away From Fundamental
Projects with experienced teams.
People only seem to care about
memecoins now and big projects
created this problem themselves.
Let me explain.
What is FDV?
Fully diluted valuation (FDV) represents the total value of a cryptocurrency project if all its tokens were in circulation.
FDV vs Market Cap
The market cap shows the current value of a cryptocurrency project by multiplying the current token price by the total number of tokens in circulation.
Now Crypto has become a place where you need lots of money to make more money.
There are very limited 50x-100x opportunities right now where retail can make life-changing gains.
VCs and new crypto projects have made it almost impossible for retail to win in this market condition.
Nowadays, crypto projects are launching at such high FDV that they have very limited upside potential left.
Let's see a few recent crypto launches and their FDV at the time of their launch:
1️⃣ Wormhole
➬ Launched in April with an FDV of $15B
2️⃣ EtherFi
➬ Launched in March with an FDV of $5B
3️⃣ Ethena
➬ Launched in April with an FDV of $10B
Apart from them, there were other projects like SAGA, DYM, and REZ, which all launched with an FDV > $2B
The only chance for retailers to make money through these protocols was through airdrops, but now it has completely become a game for the ultra-rich.
Very Few big FDV projects are been
successful but most have been just
hanging there.
But this was not always the case.
In the last bull run, several crypto projects pumped 100x-1000x, and retail made a ton of money from them.
Here are a few examples
1️⃣ Solana
➬ Launched in April with a market cap of just $7M and peaked in 2021 at $98B
➬ 14000x in just 18 months
2️⃣ Polygon
➬ Launched at a market cap of < $20M