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What are the implications of fully diluted market cap for investors in the cryptocurrency market?

avatarMd LokmanDec 26, 2021 · 3 years ago1 answers

Can you explain the significance of fully diluted market cap and how it affects investors in the cryptocurrency market?

What are the implications of fully diluted market cap for investors in the cryptocurrency market?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    Fully diluted market cap is a concept that investors in the cryptocurrency market should be aware of. It represents the total market value of a cryptocurrency if all tokens were in circulation. This metric is important because it gives investors an idea of the potential growth and market size of a cryptocurrency. However, it's important to note that fully diluted market cap is just a theoretical estimation and does not reflect the current market value. It's like looking at a cake recipe and imagining how delicious the cake could be, but it doesn't tell you the actual taste. So, while fully diluted market cap can provide valuable insights, investors should also consider other factors such as the project's fundamentals, team, and market demand before making investment decisions.