- New research and essays have rekindled an industry debate over ‘fully diluted value.’
- Some have argued that predatory tokenomics are becoming more commonplace.
- One class of token has avoided these pitfalls.
The long simmering debate around the’ “fully-diluted value” of tokens is back on a boil. On Friday, Binance published research showing how tokens are increasingly launching with a limited supply and sky-high valuations.
It prompted a flurry of responses from crypto developers, investors, and more.
Cobie, the influential pseudonymous crypto investor, urged retail investors to shun newly-launched tokens in a widely-circulated essay.
Fully-diluted value, or FDV, is among the most controversial topics in crypto. But what exactly is it, and why did Binance’s commentary set the crypto community aflutter?
What is FDV?
In crypto, many tokens follow the example set by Bitcoin: they have a finite supply, most of which will be released…
