There has been a growing concern regarding the increased traction of tokens with high valuations but low initial circulating supply, which has sparked discussions about the sustainability of upside potential for traders following the token generation event (TGE).
Binance Research’s latest findings have confirmed this trend, depicting an increasing number of tokens being launched with limited circulating supply and inflated valuations.
High Valuation, Low Liquidity Crisis
An influx of private market capital, coupled with aggressive valuations and an upbeat market outlook, has stimulated the practice of cryptocurrency tokens launching at steeply high, fully diluted valuation (FDV) points.
The report estimates that around $155 billion worth of tokens will be unlocked from 2024 to 2030. This significant influx of tokens into the market, without a proportional increase in buy-side demand and capital flows, could exert substantial selling pressure, as per the report, which, in turn, would
We współpracy z: https://cryptopotato.com/binance-doubles-down-on-low-float-high-fdv-calls-for-action/
