Understanding Token Valuations: Why FDV Matters More Than Price
Understanding Token Valuations: Why FDV Matters More Than Price
🤔 That 5¢ Token Trap
When evaluating token launches, price alone can be misleading. The Fully Diluted Valuation (FDV) provides a clearer picture of true value:
- FDV = Total token supply × Current price
- A $0.05 token with $200M FDV suggests limited growth potential
- Same price at $10M FDV indicates possible upside opportunity
Key Consideration: With only 5% of supply typically circulating at launch, high FDV projects often face price pressure during token unlocks.
Smart investors focus on:
- Lower FDV projects
- Room for sustainable growth
- Initial circulation vs total supply
Not all token launches are equal. 🫰 Look past the price — check the FDV. A $0.05 token at $200M FDV? You’re late. A $0.05 token at $10M FDV? That’s opportunity. PAID brings projects at fair, early-stage valuations. LCO world domination. 🗺️
PAID Network Hosts UNFILTERED Livestream with XProtocol
PAID Network hosted their UNFILTERED livestream series featuring XProtocol (XForge) to discuss: - Current state of builders in the web3 space - Market analysis and trends - Project momentum and development updates The livestream took place at 4 PM UTC, focusing on practical insights and project developments. Watch the full broadcast: [PAID UNFILTERED Replay](https://x.com/i/broadcasts/1dRJZYPpAXAGB)
PAID Network Transforms Crypto Launch Landscape
PAID Network is reshaping how crypto projects launch by addressing historical retail investor pain points: - **Lower Fully Diluted Valuations (FDV)** providing more accessible entry points - Implemented **capped allocations** to ensure fair distribution - Enhanced due diligence processes to vet projects - Structured exits preventing liquidity traps The platform represents a shift from the traditional high-risk launch model that often left retail investors at a disadvantage. This systematic approach aligns with growing market emphasis on sustainable valuations and fair entry points. *Learn more at* [PAID Network](https://link.paidnetwork.com/Start)
PAID Network Introduces Retail-First Token Launch Framework
PAID Network has introduced a new framework for token launches focused on retail investor accessibility. The model features: - Fundraising caps below $10M fully diluted valuation - Capped allocation sizes to prevent concentration - Priority access for retail investors - Structured due diligence process - Anti-exit liquidity trap mechanisms The platform aims to address historical issues with crypto launches like excessive valuations and limited retail participation. PAID's approach emphasizes fair distribution and sustainable tokenomics. Learn more: [PAID Network Application](https://forms.gle/2jmSMzQ6RUv86GKg7)
Understanding FDV: A Critical Metric for Token Valuations
**Fully Diluted Valuation (FDV)** is a crucial metric calculated by multiplying total token supply by current price. However, this number can be misleading: - When only a small percentage (like 5%) of tokens are circulating at launch, actual market value is significantly lower than FDV - Many projects launching at $200M FDV face price collapses during token unlocks - Liquid Collective Offerings (LCOs) maintain lower FDVs to enable sustainable growth *Understanding FDV is essential for evaluating token investments and avoiding common pitfalls.* Learn more about LCOs here: [Medium Article](https://medium.com/p/45790f947b5a)