SOL had recently released but was about to dump 80% between September and December. It would eventually recover doing a 260x from that low.
LUNA had just come out and was about to dump 70% over the next few months but would eventually become one of those rare 1000x cryptos... For a short while 😬
AXIE would not be out for another month or so but would go on to 1650x after release. But not right away... It would move sideways in Q4 and only pump in Q1 of 2021.
GALA just came out, it was about to tank 90% in Q4 before climbing 4650x 🤯
And these aren't even cherry picked examples. I'm just picking some of the biggest pumps of last cycle.
Most of them dumped hard before they pumped hard.
Every cycle in the history of financial markets, not just crypto, when you are in an extended pullback, it feels like the worst thing ever.
But the reality is the sh*t times are always pretty horrible.
The good times are always really good... If you survived the former.
I’m a little bit surprised that people don’t know why both market cap and fully diluted valuation is crucial for your investment plan. Let’s change that today. MCAP / FDV can make you or break you, I will teach you why in only 5 minutes: Let’s cut the bullsh*t.
I write content to help you. If I don’t see that appreciated in likes then my appetite to create decreases. Before we get started, follow me and leave a like, don’t be lazy, support your creators. Okay, let’s go: 👇 1: Market cap The total value of the issued coins on the market. If there’s only 10 million coins and the price is only $1 then the market cap is $10mill. The issue comes when they have 10 million coins unlocked with 500 million to be unlocked. That leads us to FDV 👇 2: Fully diluted valuation The value of the total supply of coins. With the example above we said the tokens price is $1, the circulating supply is 10 million, the total supply was 500 million, this means: 🔶 MCAP: $10 million 🔶 FDV: $500 million Why is this important? 3: Case study One This example is the epitome of why MCAP/FDV is important. Let’s look at $LDO . Take a look at the price action below. At the start of its journey it was able to pump because: A: The market cap was small B: It is a good product
Once the supply started to hit the market its market cap continued to grow. Its price became suppressed. The winners? Those who had locked supply to dump onto the market, not the retail investors. Its price is the same as when it had a low market cap despite it increasing. 4: Understanding unlocks Just because a coin has a large FDV does not mean that it cannot pump short term. It matters long term. You saw the amazing price action at the start of $LDO ‘s journey, insane. Use @Token_Unlocks (𝕏) to see when a token has supply entering the market. 5: Using it to inform your investments I feel comfortable holding a coin with: 🔶 A: Narrative 🔶 B: Catalysts 🔶 C: Unlocked supply (most of it) I don’t want to hold a coin long term that I know full well is getting dumped on my head by a bunch of dirty VCs. Short term maybe. 6: Where can you find this information? 🔶 @coingecko 🔶 @CoinMarketCap 🔶 @Token_Unlocks Hope this helps.
End Of Article. If you enjoyed this article, a like/follow would be greatly appreciated! Purely educational, not financial advice.
NEW: "Bitcoin illiquid supply reached a new ATH of almost 74% of circulating supply, signaling that the Halving-induced supply shock is actually intensifying.
This should provide a tailwind for Bitcoin over the coming months," says ETC Group head of research André Dragosch.