What is Fully Diluted Valuation FDV in Cryptocurrency? | Tokenomics

Описание к видео What is Fully Diluted Valuation FDV in Cryptocurrency? | Tokenomics

In this video, we tell you what Fully Diluted Valuation (FDV) is.

Resources:
- CoinGecko: https://www.coingecko.com/

What is Fully Diluted Valuation (FDV) in cryptocurrency?

FDV can simply be defined as the Market Cap of the project once the maximum number of tokens has been issued by the development team.

In other words, it is a method of 'calculating' the future market cap of a project.

FDV = Maximum supply of a token X Current market price of the token

How is FDV different from Market Cap?

Market Cap can be defined as the current market value of a blockchain project.

Market Cap = Circulating supply of a token X Current market price of the token

How reliable FDV is as a valuation parameter?

The basic problem with FDV is that it ignores the possible decrease in the price of a token with the increase in its circulating supply.

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