Study: Crypto Market Participants Prefer Meme Coins, Reject High FDV Projects
The growing preference of cryptocurrency market participants for character or celebrity meme tokens signals a growing disdain for projects with a completely diluted high value, Kucoin's latest report has indicated. Tap-to-earn projects have “noticeably higher global participation data” due to their lower barriers to understanding and participation.
High FDV Tokens Face Limited Price Discovery Opportunities
According to Kucoin’s June research report, cryptocurrency market participants are increasingly turning their attention toward character or celebrity meme tokens with “relatively obscure low market cap assets.” The report suggests the shift comes from investor frustration with projects that have high fully diluted value (FDV) and low initial circulating market capitalizations.
As an educational post from Bitcoin.com News recently explained, FDV represents the total value of a cryptocurrency project if all of its tokens, including locked ones, were in circulation. A high FDV potentially points to dilution of token value if and when locked tokens or coins enter circulation.
The Kucoin report indicates that some investors are avoiding high FDV tokens because they offer limited price discovery opportunities for retail investors, making wealth creation challenging. To illustrate the change in investor behavior, the report highlights how Notcoin, launched with 100% of its tokens in circulation, has been trending.
“Notcoin was launched with 100% of its tokens in circulation from the beginning. After some time on the market, by the end of May, both NOT price and trading volume saw significant growth.
