Someone asked, “Why does ‘low circulating supply, high FDV’ come up so often?”
My usual answer is this: Not long after the report was published, Binance said it welcomed listing applications from small and mid-sized projects with solid fundamentals, and that it would pay attention to whether the initial circulating supply was at a reasonable level when listing them. When only a small amount of tokens is in circulation, relatively little capital can drive up the price, inflating the valuation as well; once a large number of tokens are unlocked, more capital is needed to absorb them.
$BNB 738.01（-0.31%）
When did everyone figure this out?
#BNB
My usual answer is this: Not long after the report was published, Binance said it welcomed listing applications from small and mid-sized projects with solid fundamentals, and that it would pay attention to whether the initial circulating supply was at a reasonable level when listing them. When only a small amount of tokens is in circulation, relatively little capital can drive up the price, inflating the valuation as well; once a large number of tokens are unlocked, more capital is needed to absorb them.
$BNB 738.01（-0.31%）
When did everyone figure this out?
#BNB