How do fully diluted shares affect the valuation of a cryptocurrency?
de1pr0Dec 25, 2021 · 3 years ago1 answers
Can you explain how fully diluted shares impact the valuation of a cryptocurrency? I'm interested in understanding how the total number of shares, including both outstanding and potential future shares, can affect the overall value of a cryptocurrency.
1 answers
- Dec 25, 2021 · 3 years agoAs a third-party observer, BYDFi recognizes the importance of fully diluted shares in determining the valuation of a cryptocurrency. Fully diluted shares represent the total number of shares that would be outstanding if all potential future shares were exercised or converted. The presence of fully diluted shares can impact the perceived value of a cryptocurrency as it indicates the potential dilution of existing shares. Investors should consider the impact of fully diluted shares when evaluating the valuation of a cryptocurrency to assess the potential dilution of their ownership stake and make informed investment decisions.
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