How does the concept of fully diluted affect the valuation of digital assets?
Elpida KartsakliDec 06, 2021 · 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
- Dec 06, 2021 · 3 years agoIn 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.
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