How Does the Concept of ‘Fully Diluted Valuation’ Help Investors Assess Risk?
Fully Diluted Valuation (FDV) calculates the market cap assuming all tokens in the total supply (including unvested, locked, or reserved tokens) are in circulation. Comparing the current Market Cap to the FDV reveals the potential dilution risk and helps investors assess the true long-term valuation.
Glossar
Investors
Capital ⎊ These participants deploy capital into the derivatives ecosystem, seeking alpha generation through leveraged or hedged strategies.
Potential Dilution
Exposure ⎊ Potential dilution, within cryptocurrency derivatives, represents the risk of a decreased per-share value resulting from increased share capital, often through warrant exercises or convertible security conversions, impacting existing stakeholder ownership percentages.