Binance – Low Float & High FDV: How Did We Get Here?

The discussion around tokens with high valuations and low initial circulating supply has been a hot topic in the crypto community, leading to concerns about limited upside for traders after token generation events. Data from CoinMarketCap and Token Unlocks show a trend of tokens launching with low supply and high valuations, with an estimated US$155B worth of tokens unlocking from 2024 to 2030. Factors like private market capital influx and optimistic market sentiment contribute to tokens launching with high fully diluted valuations. This market dynamic emphasizes the importance of investors being selective and considering key project fundamentals like tokenomics, valuation, and product. Project teams must also think about the long-term effects of their tokenomics decisions. VCs play a crucial role in ensuring fair supply distributions and reasonable valuations in the industry.