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PrinceUdih
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PrinceUdih
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Th| world reserve currency
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This is not clear. Use examples please for more understanding.
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The step by step strategy please 🙏
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Take notice
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Here's a summary of the article about Fully Diluted Valuation (FDV): What is Fully Diluted Valuation (FDV)? FDV is a metric that calculates the total value of a cryptocurrency if all tokens that could ever exist were already in circulation. It's calculated by multiplying the current token price by the total supply. Key Points 1. *FDV vs. Market Capitalization*: FDV represents a project's potential future value, while market capitalization reflects its current market value. 2. *Importance for Investors*: FDV helps investors understand the long-term scale and future potential of a project, including the impact of future token releases. 3. *Limitations*: FDV assumes the current token price will remain the same, ignores market dynamics, and treats all tokens equally. How Token Unlocks and Burns Affect FDV 1. *Token Unlocks*: Token unlock schedules can impact FDV, creating sell pressure and dilution risk. 2. *Emissions and Inflationary Supply*: Some protocols mint new tokens, increasing the maximum supply and creating ongoing inflation. 3. *Token Burning*: Token burning mechanisms can reduce the supply, lowering FDV and supporting long-term price stability. Tools to Track FDV and Tokenomics 1. *CoinGecko*: Displays FDV alongside market cap and other metrics. 2. *(link unavailable)*: Tracks vesting schedules, upcoming token unlocks, and total supply evolution. 3. *CoinMarketCap*: Supports FDV and tokenomics tracking. Conclusion FDV is a valuable metric for evaluating a cryptocurrency project's future potential. However, it should be used in conjunction with other metrics, such as market capitalization, unlock schedules, and real project fundamentals, to make informed investment decisions.
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