FDV-driven Skepticism Pushes Crypto Investors Towards Meme Coins

IconCryptoNewsTerminal Staff17 Jun, 2024

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FDV-driven Skepticism Pushes Crypto Investors Towards Meme Coins

High FDV Dampens Market Enthusiasm As per KuCoin's June report, highlighted by Bitcoin.com, the crypto market's recent shift towards meme coins is a symptom of growing skepticism towards projects with exorbitant Fully Diluted Valuations (FDV). A high FDV suggests a coin's value could plummet if its locked-up supply enters circulation. FDV Dilutes Profits, Limits Growth From retail investors' perspectives, projects with a hefty FDV pose limited opportunities for price discovery. Their high circulating supply makes them less appealing for potential profits compared to projects with a lower FDV.