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“High FDV + low circulation” causes dissatisfaction in the community: Binance adjusts its coin listing strategy, where should project owners and retail investors go?
Background
Recently, due to the fact that "high FDV + low circulation" tokens have flooded the market and generally performed poorly, the community has become strongly dissatisfied with VC (venture capital) and value coins. This phenomenon has not only aroused controversy between MEME coins and VC/value coins, but has also attracted the attention and participation of investment institutions including a16z and Dragonfly.
Exchange Adjustments: New Strategies for Binance and OKX
In this context, crypto exchanges Binance and OKX have adjusted their listing strategies. On the evening of May 20, Binance released a public recruitment plan for listing projects. The announcement pointed out that tokens with high valuations and low circulation will bring huge selling pressure when they are unlocked in the future, which is not good for ordinary investors and loyal community members of the project. To this end, Binance decided to take the lead in supporting small and medium-sized cryptocurrency projects and encourage high-quality teams to apply for listing, including direct listing, Launchpools and Megadrops. Binance hopes to promote the development of the blockchain ecosystem by supporting small and medium-sized projects with good fundamentals, organic community foundation, sustainable business model and industry responsibility.
Recently, due to the fact that "high FDV + low circulation" tokens have flooded the market and generally performed poorly, the community has become strongly dissatisfied with VC (venture capital) and value coins. This phenomenon has not only aroused controversy between MEME coins and VC/value coins, but has also attracted the attention and participation of investment institutions including a16z and Dragonfly.
Exchange Adjustments: New Strategies for Binance and OKX
In this context, crypto exchanges Binance and OKX have adjusted their listing strategies. On the evening of May 20, Binance released a public recruitment plan for listing projects. The announcement pointed out that tokens with high valuations and low circulation will bring huge selling pressure when they are unlocked in the future, which is not good for ordinary investors and loyal community members of the project. To this end, Binance decided to take the lead in supporting small and medium-sized cryptocurrency projects and encourage high-quality teams to apply for listing, including direct listing, Launchpools and Megadrops. Binance hopes to promote the development of the blockchain ecosystem by supporting small and medium-sized projects with good fundamentals, organic community foundation, sustainable business model and industry responsibility.
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What is Fully Diluted Market Cap (FDV) in Cryptocurrency?
Fully Diluted Valuation (FDV) is an important metric commonly used when evaluating cryptocurrency projects, providing insight into the project’s total value potential. FDV represents the estimated market capitalization if all tokens — including those not yet in circulation — were available on the market at the current time.
Unlike circulating supply, which only refers to the number of tokens being traded, FDV takes into account the total supply of tokens. Understanding FDV helps to evaluate the value of a project holistically, rather than just based on the number of tokens currently on the market, thereby providing deeper insight into the project's potential.
Unlike circulating supply, which only refers to the number of tokens being traded, FDV takes into account the total supply of tokens. Understanding FDV helps to evaluate the value of a project holistically, rather than just based on the number of tokens currently on the market, thereby providing deeper insight into the project's potential.
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What do you think of the cottage market next?
I think the valuation logic of cottage needs to be redefined. This decline is a very natural and good phenomenon. With high FDV and low circulation, it will fall to a reasonable and not so expensive range of FDV. Why does "value coin" underperform meme? In essence, it is still too expensive. In the short term, I think the market will shift to real hard consensus (such as BTC) or hard value income (such as LDO, 13x P/E).
New or sub-new coins will experience a round of value reshaping (falling cheap), product iteration growth, and a period of bottoming out and washing and changing chips, and some stars will still appear in the form of differentiation. As for the general rise, it depends on whether BTC can reach a high enough level, and the market has enough pull/new product/FOMO to attract enough liquidity outside the circle. The market value of the top 100 meme coins is not small, and it is expected that they will still be used as a barometer of sentiment and the best speculative tool.
Just a reminder, if your copycat is stuck, if the short-term market rebounds from oversold, pay attention to reducing or clearing your position and wait and see how the market develops. Unless you firmly believe in its value and market maker, there is no need to make yourself so uneasy and anxious. #fdv
I think the valuation logic of cottage needs to be redefined. This decline is a very natural and good phenomenon. With high FDV and low circulation, it will fall to a reasonable and not so expensive range of FDV. Why does "value coin" underperform meme? In essence, it is still too expensive. In the short term, I think the market will shift to real hard consensus (such as BTC) or hard value income (such as LDO, 13x P/E).
New or sub-new coins will experience a round of value reshaping (falling cheap), product iteration growth, and a period of bottoming out and washing and changing chips, and some stars will still appear in the form of differentiation. As for the general rise, it depends on whether BTC can reach a high enough level, and the market has enough pull/new product/FOMO to attract enough liquidity outside the circle. The market value of the top 100 meme coins is not small, and it is expected that they will still be used as a barometer of sentiment and the best speculative tool.
Just a reminder, if your copycat is stuck, if the short-term market rebounds from oversold, pay attention to reducing or clearing your position and wait and see how the market develops. Unless you firmly believe in its value and market maker, there is no need to make yourself so uneasy and anxious. #fdv