FDV: The Metric That'll Burn Your Portfolio If You're Not Careful

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I've been watching too many crypto newbies get absolutely rekt by ignoring this crucial metric. Let me break down FDV (Fully Diluted Valuation) from my own painful experience.

FDV is simply Token Price × Total Max Supply. Sounds boring, right? WRONG. It's actually the silent killer lurking behind those sexy 100x promises.

When I first started trading, I ignored FDV completely. Big mistake. I bought into a coin with a tiny market cap but MASSIVE token supply still waiting to be released. The price looked cheap at first glance, but the project was secretly valued at billions when counting all future tokens. Pure insanity!

FDV shows what would happen if every possible token magically appeared in circulation overnight. And let me tell you - that eventual dilution is coming for your gains whether you acknowledge it or not.

The market is absolutely flooded with projects designed to look undervalued while hiding their true valuation. These devs know exactly what they're doing - using low circulating supply to trick retail traders like us.

I've learned to instantly check FDV before buying ANY new coin. If the FDV is wildly disproportionate to current market cap, I'm out. No exceptions. Those projects are usually designed to dump on late buyers through massive token releases.

Don't be fooled by those tiny market caps hiding astronomical FDVs. The crypto space is ruthless enough without falling for these basic traps. Just because a project looks cheap doesn't mean it actually is.

Check FDV before you buy, or prepare to donate your money to smarter traders.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
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