Why Might a Project Choose a Very Low Initial Circulating Supply?
A project might choose a low initial circulating supply to create artificial scarcity, which can lead to a higher initial token price and market capitalization. This strategy can generate significant buzz and funding early on.
It also signals long-term commitment, as a large portion of the supply is locked, suggesting the team is focused on future development rather than short-term gains.
Glossar
Higher Initial Token Price
Valuation ⎊ A higher initial token price refers to the price point at which a cryptocurrency asset is first offered to the public or listed on exchanges, particularly when this price is elevated relative to the project's fundamental value or pre-sale valuation.
Low Initial Circulating Supply
Dynamic ⎊ Low Initial Circulating Supply describes a token distribution model where a small fraction of the total maximum supply is immediately available for public trading following the asset's launch.