The scenario we are in is:

Ethereum’s ICO valuation is approximately $26 million.

Solana’s seed round valuation is approximately $20 million FDV.

Optimism’s seed round valuation is approximately $60 million FDV.

StarkNet’s seed round valuation is approximately $80 million FDV.

The seed round valuation of similar projects in 2024 now exceeds US$100 million FDV.

Market demand has created a higher FDV. The value of the entire market is much higher than before, and demand has also increased significantly. Of course, an excessively high FDV is not necessarily reasonable. This is due to the increase in valuation caused by early leverage.

Market demand has created a higher FDV. The value of the entire market is much higher than before, and demand has also increased significantly. Of course, an excessively high FDV is not necessarily reasonable. This is due to the increase in valuation caused by early leverage.

The current core problem is that it is not a problem of high FDV, but that the high FDV of many newly issued tokens is actually disconnected from the true value of these tokens. The high FDV of these tokens does not reflect their actual market demand or intrinsic value, but is simply an attempt to mix in other high FDV tokens to take advantage of the market’s general acceptance of high FDV to obtain a higher initial valuation.

The so-called low circulation rate (unlocking pressure) does not necessarily hinder the development of tokens. On the contrary, it is relatively stupid to accelerate the release of tokens and quickly achieve full circulation.

The current core issues in the encryption market are:

1. In the current new token issuance market, the price discovery process mainly occurs in the private market rather than the public market. This means that the initial price and valuation of a token is determined among a small group of institutional investors (such as venture capital firms), while ordinary investors do not have the opportunity to participate in these early rounds.

2. Venture capital firms in the private equity market are often willing to invest in new projects at very high valuations, and these valuations may not be consistent with actual market demand and supply and demand.

3. Due to the privatization of price discovery and high valuations, it is difficult for ordinary investors to find reasonable investment opportunities after entering the market when new tokens are issued, because most of the potential gains have been captured by early private equity investors. #私募 #btc