BYDFi
Trade wherever you are!
Buy Crypto
Markets
Trade
Derivatives
Bots
Events
common-tag-new-0
Rewards

How does the concept of fully diluted affect the valuation of digital assets?

Joel ÉzMay 05, 2022 · 3 years ago1 answers

Can you explain how the concept of fully diluted affects the valuation of digital assets in the cryptocurrency market?

1 answers

  • May 05, 2022 · 3 years ago
    In the world of digital assets, fully diluted valuation is an important factor in determining the value of a token. It takes into account all the potential shares or tokens that could be in circulation, including those that are not yet released. This is crucial because it provides a more accurate representation of the token's market cap and potential future dilution. By considering the fully diluted valuation, investors can make more informed decisions about the long-term potential and value of a digital asset. It's important to note that fully diluted valuation is just one factor to consider and should be used in conjunction with other fundamental and technical analysis.