The cryptocurrency market is currently grappling with the challenges posed by low float, high fully diluted valuation (FDV) token launches. These tokens, characterized by a small circulating supply and high valuation, have been criticized for their predatory tokenomics, often leaving little upside potential for retail investors. Binance has responded to these concerns by promising to list more low-market cap projects, prioritizing community rewards like airdrops over insider allocations. This shift aims to address the issues of aggressive valuations and selling pressure from future unlocks. Binance Research noted that US$155B worth of tokens will be unlocked from 2024 to 2030. The trend of high FDV token launches has been compared to the mega IPOs of 2020-2021, where early returns were largely captured in private funding rounds. Historical data shows that the FDV of high-profile token launches tends to land in a range of 1-3 million ETH. Despite the criticisms, some argue that the problem lies in the overvaluation of venture-backed tokens at launch, suggesting that investors should avoid overvalued tokens. The debate continues as the market seeks a balance between fair valuations and investor protection.
Low Float, High FDV is a MYTH The current consensus on CT is low float, high FDV tokens are bad. Thus, high float on TGE must be good. I disagree. I can use tokenomics mind tricks to have a low float, high FDV token appear as high float and none of the CT big brains will… https://t.co/dNbusgjzzU
Low float high fdv tokens are the topic of conversation right now & they're a major reason why my port has had so few gaming tokens & so many nfts NFTs w/ low mc's that drop tokens from teams who reward community >>> Low float high fdv down only forever tokens https://t.co/ACCFIPrdAG
1/10 🔓 There's a noticeable trend of tokens launching with high valuations but low circulating supplies. This lack of readily available tokens can inflate prices. 🧵But what does this mean for investors? 👇
1/3 Low-float & high FDV discussions are yielding results: Binance looks for tokens with modest valuations, prioritizing community rewards like airdrops over insider allocations. They're hopefully pivoting after recent listings turned into dump-fests. https://t.co/rxemVKCx0d
🚨BINANCE PROMISES TO LIST MORE LOW-CAP TOKENS AFTER MULTIPLE FAILED HIGH-FDV LISTINGS🚨 “Launching tokens at high fully diluted valuation and low circulating supply can result in dilutions from future unlocks which can place selling pressure on tokens” - Recent reports show… https://t.co/5c0XQg5jQi https://t.co/pWM2EaP190
🚨BREAKING: @BINANCE PROMISES TO LIST MORE LOW-MARKET CAP PROJECTS AMID OUTRAGE AT FAILED HIGH-FDV PROJECTS
In response to the problems caused by high FDV and low circulation tokens, Binance issued an announcement stating that it will give priority support to small and medium cryptocurrency projects, including Direct Listing, Launchpools, Megadrops, etc., requiring projects to reserve…
the minute you buy a 'high fdv low float' token https://t.co/bLwcJCMrYW
Binance Research published an article discussing Low Float & High FDV tokens, said that US$155B worth of tokens will be unlocked from 2024 to 2030, factors such as an influx of private market capital, aggressive valuations, and upbeat market sentiment have contributed to the…
Probably the best read on this hot topic lately. "The issues people have with “low-float” or “high FDV” is in fact actually because the price discovery has taken place in a private market that is either rigged, delusional or both" https://t.co/fCM4xfIJ5K
Memecoins are bringing VC backed token valuations down. I don’t see how this is anything other than a huge win for crypto retail.
Why do people keep denying that it’s memecoins vs VCs? It absolutely is. Most of their investments rely on the same mindshare, same pools of capital, and the same users. There is now a black hole where VCs expected their exit liquidity to be. Their investors take them less…
"Shiny new coins are the best to long as they have no unlocks for the next few months!" Great read by @cobie on the evolution of token launches and the dynamics of "low float, high FDV" tokens https://t.co/cUMMjTrz9z https://t.co/wcusGXZmvK
A must-read by @cobie for folks buying into this batch of token launches and what’s going on in pre-launch private rounds. “… it seems to me that the majority of new launches are now effectively uninvestable at market – and market participants’ understanding of the issues is… https://t.co/k9JRNLGo94
Everyone is overthinking the low float, high FDV token regime. The problem is simple — most venture backed tokens are grossly overvalued by the time they go public. The solution is simple as well — don’t buy overvalued nonsense and stop being a new coin simp.
Memecoins are a much needed corrective mechanism for crypto: the harbinger of death of the Fat Protocol Thesis. The VC game of financing endless amounts of [useless] infra projects is in its death throes. The era of consumer dApps is upon us.
Memecoins are the epitome of crypto. They are the lane that allows someone with “smaller” capital to make life changing money. It’s the new age American Dream, where you can go to zero to hero from simply some time in the trenches, some talent, and a bit of luck.
You can compare this cycles "low float high FDV" token launches to the "mega IPOs" of 2020-2021 (COIN, SNOW, ABNB, etc.). Most of the early returns were captured in private funding rounds for those companies. Point is, it's not anything new, but many cryptocurrency enthusiasts…
Big part of memecoins success is VC being sidelined. Like back in the good old times with ICOs in 2017 and DeFi in 2020. Every single time VCs are in, tokenomics are designed for max extraction. They don't want anyone else to win.
Maybe low float high FDV coins should switch to price based unlocks vs time based unlocks. Very crude instrument but if people know VCs can’t start dumping till 1b FDV instead of 3 months from TGE there is a bit more alignment. Not ideal but seems slightly better.
While the low float token meta certainly contributes to higher valuations for new listings. Project listings at a later stage of maturity and the maturing crypto private markets play a much more significant role in this trend. In the ICO era, new token listings were essentially…
The predatory tokenomics we saw with SBF sam coins (low float, high FDV, VCs stake locked tokens) is now a standard playbook for new token launches Result is almost zero upside potential for retail, pushing more and more people toward fully circulating memecoins (pvp zero-sum… https://t.co/UY6iWz3KV6
This post demonstrated that the FDV of high profile token launches historically tends to land in a range of 1-3 million ETH. This seems to have been true going back 7 years. And 2024 tokens if anything are probably cheap. Many objected to the framework was ridiculous. "Why would… https://t.co/DwFfI4fOYm https://t.co/EJRyKe6Gvr
"Crypto is notoriously bad for low float assets". Would it surprise you to learn the average contemporary IPO has an almost identical float % as the average high profile token launch? (12.8% vs. 12.5%) "Low float assets are guaranteed to have a down only chart". Would it… https://t.co/LY889QclNo
engagement low? watch this low float, high FDV token launches are bad
high FDV / low float token launches https://t.co/DzAw5tYEhM
Many people think that today's token launches are being priced much higher FDVs than in the past. What this doesn't take into account is that crypto prices are much higher. Once you adjust for this there isn't much difference. Let's take a look at some high profile launches from… https://t.co/gd9TxXMA96
the market is solving this in real time by absolutely destroying the charts on high fdv, low float, overpriced token launches https://t.co/dAl2gZflji